KENYA is stepping up efforts to attract more private capital by deepening its partnership with the East Africa Venture Capital Association (EAVCA), the region’s membership organisation for private equity and venture capital investors.
This, as the country seeks to strengthen its position as a regional investment hub and unlock funding for high-growth businesses.
Invest Kenya and EAVCA have renewed their partnership to mobilise and accelerate private capital investment into the country, with a focus on connecting investors with high-potential businesses, strengthening investment intelligence and developing a stronger pipeline of investable deals.
The partnership comes at a time when investors are becoming more selective, shifting away from speculative high-growth ventures towards companies with proven revenues, stronger fundamentals and clearer paths to profitability.
“Beyond capital mobilisation, the partnership will advance investor readiness, market intelligence, capacity building, and policy engagement, creating a stronger ecosystem for businesses to scale and investors to deploy capital with confidence,” Invest Kenya CEO John Mwendwa said.
Kenya attracted Sh16.3 billion ($126 million) in venture capital funding in the first half of 2026, ranking third in Africa behind Egypt and Nigeria.
The latest investment trend points to fewer but larger transactions, with investors increasingly favouring mature businesses capable of demonstrating sustainable growth and disciplined capital deployment.
Climate technology, renewable energy, electric mobility and digital financial infrastructure have emerged among the key beneficiaries of the changing investment strategy.
Across Africa, fintech remained the largest recipient of startup funding, accounting for about 41 per cent of capital raised, while climate-focused ventures attracted about 39 per cent, highlighting growing investor appetite for businesses linked to sustainability and the energy transition.
For Kenya, the renewed EAVCA partnership is therefore expected to play a role in turning the country's pool of promising enterprises into investment-ready opportunities while helping investors identify viable projects.
The initiative also comes as Kenya seeks to build on its position as a major destination for foreign direct investment (FDI).
Data from Invest Kenya shows that 167 investment projects were registered last year, with renewable energy, communications, electronic components, fossil fuels, manufacturing and agriculture among the key sectors attracting investors.
Kenya's appeal is underpinned by its strategic position as an East African gateway, improving infrastructure, a growing digital economy and policies aimed at making the country more attractive to investors.
The government is also pursuing reforms around VAT refunds, transfer pricing, land leases, Export Processing Zones and Special Economic Zones to accelerate investment deals, improve the business environment and strengthen investor protection.
Invest Kenya has established a One Stop Centre, bringing together services from multiple government agencies through a single digital and physical platform.
The centre helps investors with business registration, tax matters, immigration and work permits and investment certificates.
“We want to offer seamless services, quality data, be reliable and facilitate investments in a very agile manner. We have to be innovative because the world is moving,” Mwendwa said.
However, Kenya still faces challenges that could undermine its ability to attract and retain private capital.
The high cost of doing business, particularly electricity costs and taxation, remains a concern, while corruption and regulatory uncertainty continue to feature among investor concerns.
The government will therefore need to ensure that investment reforms translate into faster approvals, predictable policies, lower operating costs and greater investor confidence.
For EAVCA and Invest Kenya, the renewed partnership offers an opportunity to bridge the gap between capital seeking opportunities and Kenyan businesses seeking growth funding.
With investors demanding stronger fundamentals, the ability to develop credible, investment-ready businesses could determine whether Kenya converts its regional investment advantages into significantly larger pools of private capital.
