Kenya’s Tech Sector Becomes Top FDI Magnet, Surpassing Banking and Manufacturing
Historically, Kenya’s banking and manufacturing sectors dominated FDI inflows, but the rapid growth of the digital economy has changed the landscape.
Kenya’s technology sector has emerged as the country’s leading destination for foreign direct investment (FDI), surpassing both banking and manufacturing for the first time. According to the 2024 Foreign Investment Survey Report , the information and communication sector accounted for 38.6% of Kenya’s total FDI stock in 2023, overtaking traditional investment strongholds.
This marks a significant shift in investor priorities. Historically, Kenya’s banking and manufacturing sectors dominated FDI inflows, but the rapid growth of the digital economy has changed the landscape. The rise of fintech, data centers, digital infrastructure, and startup ecosystems has drawn investors seeking exposure to Africa’s expanding tech opportunities.
The banking sector, once the top recipient, followed at 27.6%, while manufacturing held 16.7% of total FDI stock. The report underscores that global capital is now gravitating toward technology-driven growth, reflecting confidence in Kenya as a hub for innovation and digital services.
The momentum is fueled by Kenya’s reputation as the “Silicon Savannah,” supportive regulatory frameworks, and growing regional demand for digital solutions. Increased venture capital inflows, strategic partnerships, and infrastructure investments — including undersea cables and cloud facilities — have solidified Kenya’s tech appeal on the global stage.
This transformation positions Kenya not only as East Africa’s financial hub but also as a rising continental leader in technology investment. With tech now leading the pack, the country’s future FDI trajectory will likely hinge on continued innovation, digital inclusion, and regulatory stability.
