Investors Urge Stronger Linkages as Kenya Startup Funding Slows and Private Capital
Remains Underused for Startups

Investors are urging deeper engagement between
startups and full-service investment banks to unlock advisory support for capital raising, due
diligence and valuations, as new data shows Kenyan startup funding continuing to slow.

According to the Africa Venture Capital Association, Kenyan startups raised KES 16.3 billion in
the first half of 2026, a modest decline from KES 17 billion over the same period last year.
The slowdown has sharpened focus on how the region can better mobilize local capital pools.

As of June 2026, government securities accounted for approximately 47% of pension assets,
compared with just 1.36% in private equity and 0.02% in infrastructure debt instruments; this
despite pension schemes being permitted to allocate up to 10% of assets to private equity and
venture capital, and a further 10% to infrastructure debt instruments, under the current
investment framework.

The findings were discussed at the 10th EAVCA Annual Private Wealth Conference, which
brought together investors, policymakers, development partners and business leaders to
examine how East Africa can build a stronger domestic capital base to support regional scale.

“As we mark 10 years as an association, we are looking ahead to strengthening domestic
capital, accelerating regional integration and positioning East Africa to attract and deploy global
investment at greater scale,” said Christine Maina, Chief Executive Officer of the East Africa
Venture Capital Association (EAVCA). “Our rebrand reflects this broader ambition: to evolve with
a changing investment landscape and help structure the next stage of Africa’s growth. Private
capital will be critical to financing entrepreneurship, infrastructure, innovation and economic
resilience, and our ambition is for EAVCA to be at the center of the partnerships, policies and
investment needed to shape that future.”
Delegates stated that strengthening advisory support, building institutional-grade investment
infrastructure and creating clearer pathways for capital to be recycled back into the market will
be critical to reducing risk, deepening markets, and unlocking the region’s next generation of
enterprises.
“The opportunity before us is to make the connection between capital and opportunity more
efficient,” said Muathi Kilonzo, Managing Director, NCBA Investment Bank. “Institutional capital
requires investable structures, credible projects, appropriate risk allocation and clear pathways
to returns. NCBA Investment Bank has the privilege of being the largest full-service investment
bank in the region, having mobilized over KES 100 billion in assets under management, and we
have the capacity to help startups and enterprises prepare to unlock their next phase of growth,”
said Kilonzo.