Kenya Clean Energy Startups Capture 83% of Africa’s $550M July 2025 Funding Boost

Kenya’s clean energy startups dominated Africa’s startup funding in July 2025, capturing 83% of the continent’s $550 million raise. Two Kenyan companies—Sun King and d.light—led the charge, with Sun King closing a $156 million securitisation and d.light expanding its receivables financing by $300 million [1]. The Sun King deal, the largest securitisation in Sub-Saharan Africa outside South Africa, was structured by Citi and Stanbic Bank Kenya Ltd and supported by five commercial banks and three development finance institutions [1]. The funds will enable 1.4 million low-income households and businesses in Kenya to access clean energy for the first time [1].

Nigeria, once the most-preferred investment destination in Africa, continued to lag in venture funding during the same period. Nigerian startups raised only $58 million in equity in July 2025, the second-lowest equity amount of the year and far below their peak contributions in previous years [1]. The decline is part of a broader trend that has seen Nigeria fall behind Kenya, Egypt, and other African markets in venture funding. This comes as investors increasingly favor debt financing over equity, particularly for early-stage startups [1].

The continent’s overall funding performance, however, remained robust in July 2025. The $550 million raised marked a 50.6% increase from June’s $365 million and brought total 2025 investments to nearly $2 billion as of July, outpacing the $2.2 billion raised across the entire year of 2024 [1]. Notably, 89% of the July funding came in the form of debt, a sharp rise from the 28.5% debt financing recorded in June [1]. This shift reflects a growing investor preference for structured debt instruments, particularly in high-impact sectors like clean energy [1].

Despite the continent’s strong fundraising momentum, Nigeria’s startup ecosystem faces an uphill battle to regain its former position. Analysts suggest that the country may need landmark equity investments or structural reforms to rekindle investor confidence [1]. While there were hopeful signs late in the previous year, including a major equity raise that propelled Moniepoint to unicorn status, 2025 has shown no similar breakthroughs from Nigerian startups [1].

Source: [1] Funding Nigerian startups missing Kenya (https://technext24.com/2025/08/05/funding-nigerian-startups-missing-kenya/)