Kenya accounts for 59% of private equity investments in Eastern Africa

The fresh data showed some 110 business deals worth KSh 130 billion were closed in the Kenyan private equity market alone in the past five years. 

The Africa Private Equity and Venture Capital Association (AVCA) report indicated the country attracted 59% of the private equity funds invested in Eastern Africa between 2013 and 2018, the highest compared to similar investments made in other countries in the region. According to the report released on Tuesday, April 2, the funds were mostly invested in the technology and consumer goods sectors in the local market. 

The AVCA report indicated up to 89% of the private equity deals inked since 2013 to-date were in the technology and consume goods sectors. Kenya was followed from a distance by Ethiopia and Rwanda, each of which had 11% share of the private equity investments market during the period under review. 

The researchers attributed the preference for Kenya as an investment destination for private equity and venture capital investors to economic and political stability and also ease of access to other East African markets. However, the report also indicated although the country remained the most preferred destination for the discerning investors targeting the Eastern Africa region, Nairobi is facing increased competition from Ethiopia and Rwanda. 

The report was released ahead of AVCA's sixth annual private equity conference for private equity and venture capital investors who gathered in Nairobi for the three-day forum. The event, which understands kicked off on Tuesday, played host to the region's top 400 private equity leaders who met to discuss the most critical topics that will shape the investment landscape in 2019.