Chief Executive Officer, AVCA, Abi Mustapha-Maduakor East Africa has successfully attracted US$4.1bn in investments between 2021 and 2025, a milestone attributed to aggressive capital market reforms and foreign exchange liberalisation across the region. The data was unveiled at the ongoing 22nd Annual AVCA Conference & VC Summit, where over 800 international and domestic financiers have gathered to position Kenya as the primary gateway for African private capital.
The influx of capital is being viewed by experts as a direct result of improved governance and easier market entry and exit execution in key economies like Kenya, Uganda, and Rwanda. Commenting on the milestone, Chief Executive Officer, AVCA, Abi Mustapha-Maduakor, said, “The current environment, while challenging, has opened doors for local institutional investors to fill gaps left by geopolitical complexity, restructure value chains, and transform technological change into investor-led growth for Africa.” While international interest remains high, the 2026 summit has placed a spotlight on the mobilisation of local capital.
Central to this strategy is the activation of domestic pension funds to provide the long-term stability required for large-scale infrastructure and private equity projects. Also speaking at the event, Pension Administrator, Central Bank of Kenya, Jane Nzau, said, “Pension funds in Kenya are ready to invest and provide long-term capital, provided there is structure, proper regulation, and good returns on investment.
International capital remains important; increasing domestic investment is essential for resilience and growth.” The report further highlights that while Kenya remains the core deployment market, investors are increasingly “crowding into” frontier markets, including Ethiopia, Tanzania, and Rwanda.
This geographic expansion is supported by a burgeoning private credit market, which has seen a 30 per cent year-on-year increase in deal volume. With GDP growth projected at six per cent for the 2026–2027 period, the region is moving to capitalise on cross-border railway corridors and energy storage projects, linking critical minerals with manufacturing hubs to ensure the US$4.1bn influx is merely the foundation for a much larger economic transformation.
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