In 2024, significant events unfolded in the Kenyan startup ecosystem, showcasing a mix of challenges and successes for founders. While some startups faced setbacks such as shutdowns and downsizes, others thrived through substantial fundraising, mergers, acquisitions, and bold expansions into new territories.
Two notable startups, Copia and iProcure, faced financial difficulties in the first half of 2024 and eventually went into administration due to a lack of new funding. Despite plans for a fresh start by Copia’s co-founder Tracey Turner, no concrete developments have emerged.
M-KOPA successfully dealt with a complex tax issue in Kenya and expanded its investments by establishing an enhanced phone assembly plant in Nairobi along with an e-bike manufacturing facility.
Reflecting on the company’s progress, Mayur Patel, M-KOPA Fintech MD, shared in November 2024, “We have achieved profitability as an organization for multiple consecutive quarters.”
Kenya also saw its first two startup acquisitions in 2024, with Kopo Kopo and Hisa undergoing ownership changes. Additionally, Craydel, an educational technology startup from Kenya, expanded its operations to Zimbabwe, marking its fourth market entry on the continent.
Highlighted below are some of the promising Kenyan startups to keep an eye on in 2025:
M-KOPA
During September 2024, M-KOPA announced a significant milestone of reaching five million customers across five African markets as part of its ongoing pan-African expansion. This achievement positions M-KOPA as the first Kenyan financial services startup to attain such a substantial customer base.
Established in 2010 by Nick Hughes, Chad Larson, and Jesse Moore, M-KOPA operates as a PAYGO fintech offering affordable smartphones, solar panels, and electric motorcycles to individuals with low incomes.
Having resolved its tax dispute in Kenya, M-KOPA is now focused on growing its market for locally assembled smartphones and electric motorcycles.
Patel emphasized, “Our success is measured by the scale of impact we can create. We are facilitating progress in the lives of everyday earners, which is crucial as our primary customers are self-employed individuals in the informal economy.”
KopoKopo
In August 2023, Moniepoint, a Nigerian unicorn, finalized its acquisition of Kopo Kopo, a Kenyan payments and credit startup founded by Ben Lyon and Dylan Higgins in 2012. This strategic move expanded Moniepoint’s presence into East Africa’s largest economy.
Despite the dominance of banks and mobile money in Kenya’s payments landscape, fintech companies like Kopo Kopo face challenges due to stringent regulatory frameworks, notably from the Central Bank of Kenya.
Moniepoint’s entry into the Kenyan market will be closely monitored, with regulatory scrutiny expected to intensify.
Craydel
In November 2024, Craydel, an educational technology startup from Kenya, expanded its operations to Zimbabwe, marking its fourth operational market. The company has developed a comprehensive platform for university applications tailored for African learners, offering personalized recommendations through its university matchmaker feature.
Established in 2021, Craydel facilitates African students in applying to universities abroad, operating in Kenya, Uganda, Nigeria, and Zimbabwe, with partnerships spanning 600 universities across 45 countries.
Manish Sardana, Founder and CEO of Craydel, remarked, “The study abroad market in Africa is a rapidly growing multi-billion dollar sector. Currently, it is fragmented, with numerous analogue study abroad agents dominating the landscape.”
Hisa
In a significant development, Rise, a Nigerian fintech enabling access to global investments, completed the acquisition of Hisa, a Kenyan investment startup founded by Eric Asuma and Eric Jackson in 2020. Hisa, which retained its brand and operations post-acquisition, aims to expand its customer base and introduce new product offerings.
Hisa allows users to invest in Kenyan and global assets like stocks, bonds, and ETFs, catering to the investment needs of a diverse clientele.
Asuma shared, “Hisa’s growth post the Risevest acquisition has been remarkable. We are rapidly scaling, addressing technical issues, and implementing significant updates. Interestingly, Hisa witnessed record-breaking trading volumes in the final week of November, the highest in over a year, driven by