Kenya Tops East Africa’s Investment Charts

Hi there 👋🏿 It's Brian from The Kenyan Wall Street

In today's newsletter, Private Equity Deals in East Africa scooped US$38 million in January this year - with Kenya leading the chart.

But here are also other stories we have for you…

INVESTMENT  

Kenya Tops East Africa’s Investment Charts

In January 2025, East Africa recorded 13 private capital transactions worth $38.7 million, with Kenya leading at 10 deals, followed by Tanzania (2) and Rwanda (1). Financial services saw the highest activity with six deals, while Mergers & Acquisitions and Venture Capital were the most active investor segments.

Kenya’s macroeconomic and policy landscape remains a key factor influencing investment, with investors prioritizing sustainability and foreign exchange resilience. Notable deals included Novastar Ventures' US$3.5 million investment in Sistema Bio, IFC’s US$15 million loan to Royal Apparel EPZ, and Actis' sale of Java House to Alterra Capital and Phatisa Group. Here is what has driven Kenya's private equity dominance in the region…

Today's Poll

Yesterday's Poll Results

Do you think the Risk-Based Pricing model, which allows banks to set individualized interest rates based on a borrower's risk profile, is fair to borrowers?

🟩🟩🟩🟩🟩🟩 Yes (65.22%)

🟨🟨🟨⬜️⬜️⬜️ No (34.78%)

FINANCE  

Building on Debt: MSMEs Struggle to Stay Afloat

MSMEs in Kenya struggle with limited credit access, with the construction, mining, and hospitality sectors having the highest outstanding loans. The construction industry faces an 18% default rate due to delayed government payments, rising material costs, and reliance on credit.

Unsecured loans are more common, but secured loans make up 95% of the total value, leaving MSMEs without valuable collateral at a disadvantage. Women-led businesses receive only 36% of MSME loans, despite strong repayment performance, while lending remains concentrated in urban areas. With 91% of loans overdue by 90 days still unpaid, financial strain on MSMEs persists, prompting calls for alternative financing solutions. How do the numbers look like…

TECH & REGULATION

TikTok Faces Regulator’s Wrath over Sexual Content 

Kenya’s media regulator, CA, has TikTok in its crosshairs after a BBC exposé uncovered minors being exploited on livestreams. Officials want answers on why the platform’s content filters are failing—and they’re not buying excuses.

A former TikTok moderator spilled the beans—claiming the company profits too much from livestream gifts to crack down hard. Despite past promises to clean up its act, TikTok’s AI struggles to catch coded content and local languages, leaving loopholes wide open. Here are the details…

On your watchlist 

More Stories: 

• Investment. Stima Sacco is seeking to recover KSh 108 million it invested in the Kenya Union of Savings and Credit Cooperatives (KUSSCO) but says the amount is insignificant to its full-year financial performance.

• Fintech. Visa and Citi have partnered with African fintech firm Cellulant to launch Citi Optimized Pay, a card-based supply chain finance solution to accelerate payments to small businesses in Kenya.

• Energy. KenGen Managing Director and CEO Eng. Peter Njenga has been appointed Co-Chair of the Business 20 (B20) Task Force on Energy Mix and Just Transition under South Africa’s G20 presidency in 2025.

• Mining. LSE-listed Marula Mining’s subsidiary Muchai Mining Kenya has signed a deal with Baosteel Resources South Africa, a subsidiary of the world’s biggest steel producer, to purchase and sell manganese ore from the Kilifi manganese processing plant.

Have a great weekend!