Kenya’s tech ecosystem in 2024 stood as a testament to both remarkable progress and persistent challenges.
The “Silicon Savannah” continues to capture global attention, boasting achievements that have solidified its reputation as a hub for innovation.
In 2024, Mpesa, the world’s leading mobile money platform, processed more than Sh775 billion in transactions, while the Huduma Namba 2.0 initiative was launched to strengthen and transform access to government services for millions of citizens.
These milestones reflect the tangible impact of Kenya’s technological strides, but they also underscore the cracks in the system—from digital inequality to cybersecurity threats—that hinder a fully realised tech-driven economy.
Among last year’s highlights is that Kenya’s tech start-up ecosystem saw reduced funding investment compared to the highs of 2022 and the first half of 2023.
Kenya—whose vibrant tech ecosystem has long been classified among Africa’s ‘Big Four’ alongside Nigeria, Egypt and South Africa—led the pack by taking a third of the Sh49 billion funding poured into the continent’s start-ups.
This year also saw a lot of investment poured into Kenyan start-ups in artificial intelligence and the varied climate tech pool, adding to years of large deals in the financial technology and e-commerce fields.
The reimagined Huduma Namba 2.0 initiative marked a transformative leap in digital governance. By seamlessly integrating with various public services, it streamlined access and significantly reduced corruption, setting a benchmark for e-governance in Africa.
Kenya’s commitment to environmental sustainability shone through its renewable energy advancements. Startups like BasiGo received more than Sh5.8 billion to introduce electric buses in East African urban centres by the end of 2026, while Green Charge expanded solar energy storage solutions in rural areas.
“Technology is at the heart of our climate action strategy,” Environment Principal Secretary Festus Ngeno said.
These advancements reinforced Kenya’s alignment with global sustainability goals, leveraging innovation to combat climate change.
AI further cemented its role in Kenya’s industries. From AI-driven tools predicting weather patterns to personalised education platforms revolutionising learning, the technology’s impact was felt across agriculture, logistics and education.
However, the much-anticipated Robotics and AI Bill 2023 faced rejection in Parliament, a setback that sparked widespread debate.
Critics argued it lacked sufficient stakeholder consultation and risked stifling innovation with overly stringent controls.
This highlighted a pressing need for balanced policy-making that fosters growth while ensuring ethical practices.
One of the most inspiring developments was the establishment of the Timbuktoo Green Tech Hub in Kenya by the United Nations Development Programme and Kenya’s Ministry of Information, Communications and Digital Economy.
Supporting groundbreaking startups like EcoPlastics, which develops biodegradable packaging, and GreenCharge, this hub emerged as a beacon of sustainable innovation.
However, Kenya also grappled with a growing e-waste problem.
The rapid adoption of technology has left the country struggling to establish systems for recycling and disposal, raising critical questions about the sustainability of its tech-driven growth.
The ICT ministry introduced two key legislative proposals in 2024 that have been highlighted as transformative steps for the nation’s ICT and innovation sectors: the Technopolis Bill and the ICT Authority Bill 2024.
Together, they represent significant legislative advancements in fostering an environment for digital innovation and sustainable economic growth.
In 2024, the University of Nairobi made significant strides in advancing AI education and innovation. As part of its ‘Big 5’ transformative initiatives, UoN launched the Nairobi School of AI.
By establishing the school and introducing Kenya’s first master’s degree programme focused on AI, UoN aims to develop top-tier AI talent and create localised AI solutions for Africa.
Despite these successes, challenges persisted. Digital inequality remained a glaring issue, with rural communities lagging behind urban centres in access to affordable internet and devices.
Statistics showed that less than 30 per cent of rural households had reliable internet connectivity, compared to 80 per cent in urban areas.
Cybersecurity threats also escalated, with financial institutions and e-commerce platforms suffering signifi cant losses due to cyberattacks.
Sectors like robotics and biotech continued to struggle, hindered by limited funding and expertise, while a persistent brain drain saw top talent leaving for lucrative opportunities abroad.
“Kenya must find ways to retain its brightest minds if it hopes to sustain innovation,” Muthoni Wanyoike, the co-founder of Nairobi Women Learning and Data science, said.
Yet, 2024 was not without its lessons. The importance of digital inclusion cannot be overstated.
Expanding affordable internet access and providing low-cost devices to underserved communities must become national priorities.
Similarly, cybersecurity demands immediate attention, with a taskforce to improve cybersecurity regulatory framework and promote public awareness.
What’s the progress of the taskforce constituted in June 2024 tasked on the Development of Cybersecurity Policy? Where is their report and comprehensive review and audit of the Computer Misuse and Cybercrime Act?
Diversifying into deep tech—robotics, AI and biotech—presents a new frontier of opportunity, while initiatives to reverse brain drain, such as offering competitive salaries and research grants, are crucial for strengthening the ecosystem.
Looking ahead, public-private partnerships must accelerate infrastructure projects like 5G rollout and last-mile connectivity.
Kenya’s delayed 5G deployment—attributed to high spectrum costs and limited readiness—must be fast-tracked to unlock the potential of Internet of Things and smart agriculture.
