Kenya’s technology sector has officially become the country’s leading magnet for foreign direct investment (FDI), surpassing both banking and manufacturing for the first time. The 2024 Foreign Investment Survey Report shows that the information and communication sector accounted for 38.6% of Kenya’s total FDI stock in 2023, overtaking industries that traditionally dominated investor interest.
This shift highlights how rapidly investor priorities are evolving. For years, Kenya’s banking and manufacturing sectors absorbed the lion’s share of FDI, but the surge in the digital economy has transformed the landscape. Investors are now targeting fintech, data centers, digital infrastructure, and startup ecosystems, eager to tap into Africa’s growing technology market.
Hub for innovation
The banking sector, previously the top recipient, came second with 27.6%, followed by manufacturing at 16.7% of total FDI stock. According to the report, global capital is increasingly aligning with technology-led growth, underlining Kenya’s growing reputation as a hub for innovation and digital services.
Kenya’s standing as the “Silicon Savannah”, coupled with supportive regulatory policies and strong regional demand for digital solutions, has been key to this momentum. Rising venture capital flows, strategic collaborations, and major infrastructure projects from undersea internet cables to cloud facilities have further boosted the country’s global tech appeal.
With technology now steering FDI inflows, Kenya is repositioning itself beyond its role as East Africa’s financial hub to emerge as a continental leader in digital investment. The trajectory of future inflows will depend on sustained innovation, deeper digital inclusion, and consistent regulatory stability.