When you think about expanding into East Africa, one country consistently tops the list: Kenya. And for a good reason. With its strategic position as the commercial heart of the East African Community, world-class infrastructure, and a thriving innovation ecosystem, Kenya has become the undisputed gateway to a market of over 300 million people.
But here’s what makes Kenya truly special. It’s not just about market access, though that’s certainly compelling. It’s about the unique combination of factors that make Kenya the ideal launchpad for businesses looking to scale across the region. From Nairobi’s status as Africa’s fintech capital to the Port of Mombasa’s role as the region’s supply chain artery, Kenya offers advantages that are hard to replicate elsewhere.
Let’s explore why forward-thinking companies are choosing Kenya as their East African hub and what makes this market so strategically important.
Nairobi: Africa’s silicon Savannah and fintech powerhouse
Walk through Nairobi’s central business district or the emerging tech hubs in Westlands and Kilimani, and you’ll feel the energy of innovation in the air. The city has earned its nickname “Silicon Savannah” through years of groundbreaking technological advancement, and it’s not slowing down anytime soon.
In 2025, M-Pesa launched its Fintech 2.0 platform, a cloud-native system that can now process 6,000 transactions per second, up from 4,500. This isn’t just a technical upgrade; it’s a statement about Kenya’s ambition to lead Africa’s digital economy. The platform has added 2.1 million new users in just six months and now integrates AI for real-time fraud detection and system monitoring.
Here’s what many people don’t realise: the International Trade Centre opened its first regional hub outside Geneva in Nairobi in November 2025, bringing global markets closer to East Africa’s producers. This is the kind of recognition that validates Kenya’s position as a serious player in global innovation.
The fintech ecosystem extends far beyond M-Pesa. Kenya’s digital payments market is projected to reach $14.54 billion by 2028, with a compound annual growth rate of 14.1% over 2024-2028. Global giants have taken notice. Microsoft chose Nairobi as the location for its African Development Centre. It launched the Microsoft Africa Research Institute, the first of its kind on the continent, while Visa opened its inaugural African innovation studio in the city.
For tech startups and VC-backed companies, this ecosystem provides unparalleled advantages: access to talent, established infrastructure, and a regulatory environment that increasingly supports innovation.
The prominent East African community:
Let’s talk numbers for a moment. The East African Community isn’t just Kenya; it’s a regional powerhouse that includes Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo. Being part of these two regional economic blocs, which cover almost half of Africa’s population, provides Kenya with duty-free access to other member states while imposing a standard external tariff on non-members.
This is a game-changer for businesses. Manufacture in Kenya and sell throughout the region without the burden of multiple tariffs and complex trade barriers. Kenyan companies, including Safaricom, Equity Bank, and Bidco Africa, have successfully expanded into Uganda, Tanzania, and Rwanda, with Safaricom even entering Ethiopia, a country with a population exceeding 120 million.
But market access is only part of the story. In November 2025, the 25th East African Community MSME Trade Fair took place in Nairobi, bringing together businesses from across the region. These kinds of platforms facilitate partnerships, skills exchange, and trade dialogue that are essential for regional growth.
The EAC Single Customs Territory allows goods to clear customs once at Mombasa Port for seamless transit to Uganda, Rwanda, and the DRC. This level of integration dramatically reduces the friction of cross-border trade.
Port of Mombasa and the Northern Corridor: The region’s supply chain lifeline
If Nairobi is Kenya’s brain, then Mombasa is its beating heart. The Port of Mombasa serves as the primary gateway for goods entering and exiting East and Central Africa, and recent developments have made it more efficient than ever.
The port handled 21.3 million tonnes of cargo between January and June 2025, up 8.1% from 19.7 million tonnes in the same period of 2024. This growth came despite global supply chain challenges. Container traffic reached 1,012,949 twenty-foot equivalent units, up 6.7% from the previous year, with imports increasing by 13.4% and exports rising by 14.4%.
Here’s what makes this particularly significant: in January 2025, the Kenya Ports Authority launched a multibillion-shilling modernisation project valued at over Ksh 60 billion (approximately $460 million). The port received 16 ship-to-shore gantries, 25 reach stackers, 27 empty container handlers, 58 rubber-tyred gantries, and eight rail-mounted gantries in March 2024.
The Northern Corridor, which connects Mombasa to Uganda, Rwanda, Burundi, South Sudan, and the DRC, is equally impressive. About 6,000 trucks per week move between Mombasa and Uganda via the Northern Corridor and the Standard Gauge Railway link to the Naivasha Inland Container Depot.
In November 2025, Kenya introduced reforms to decongest Mombasa Port, including transferring Uganda-destined cargo to the Naivasha Inland Container Depot for clearance, cutting clearance delays and lowering demurrage costs.
For logistics companies and FMCG businesses, these infrastructure improvements translate directly into lower costs and faster time-to-market across the region.
Agriculture and FMCG: Untapped opportunities in a growing market
Agriculture remains the backbone of Kenya’s economy, and the opportunities in this sector are vast and often underappreciated. Agriculture accounts for 40% of Kenya’s overall workforce and about 33% of the country’s GDP, with significant exports including tea, coffee, cut flowers, and vegetables.
But here’s where it gets interesting. The government announced that Kenya is on course to harvest 75 million bags of maise this season, doubling production in just two years. This surge in productivity creates opportunities throughout the value chain, from agro-processing to distribution.
In February 2025, a new regional hub for scaling up science-based agricultural solutions was launched in Nairobi to serve East and Southern Africa, helping these regions scale up food, land, and water accessibility.
For FMCG companies, Kenya offers a sophisticated consumer base with growing purchasing power, established distribution networks, and access to regional markets. Major international brands like Unilever, Wrigley, and GlaxoSmithKline have established strong presences in Kenya, using it as a base to serve the broader East African market.
The agribusiness sector presents particularly compelling opportunities. The Kenyan government encourages new investment in manufacturing, and U.S. industrial chemical manufacturers may consider utilising Kenya as a base for penetrating the regional market. With the right approach, companies can tap into the growing demand for agricultural inputs, processing equipment, and value-added food products.
Digital infrastructure
Kenya’s digital transformation extends far beyond fintech. The government announced that 30,000km of a digital superhighway is complete, with public Wi-Fi reaching villages and digital hubs being established in each of Kenya’s 1,450 wards.
The digitisation of government services on the e-Citizen platform now exceeds 22,000, streamlining access, cutting costs, and simplifying business registration to spur entrepreneurship. This level of digital integration makes it easier than ever to establish and operate a business in Kenya.
In 2024, Kenya made significant progress, expanding broadband access and rolling out 5G networks, enabling startups to innovate in IoT, cloud computing, and smart city solutions. For businesses dependent on digital infrastructure, this creates a competitive advantage that’s hard to find elsewhere in the region.
The startup ecosystem reflects this digital maturity. In 2024, Kenyan fintech startups raised $800 million, and over 150 companies established a presence in Europe, North America, and Asia. This demonstrates both the quality of Kenyan innovation and the ability of companies to scale globally from a Nairobi base.
Strategic considerations for your Kenya entry
So what does all this mean for your business? If you’re in tech, Kenya’s innovation ecosystem provides access to talent, investors, and a government increasingly committed to supporting digital transformation. The presence of major tech hubs like iHub, Nairobi Garage, and accelerator programs creates a supportive environment for growth.
For VC-backed expansions, Kenya offers a proven track record of successful scaling. The exits and growth stories of companies like M-KOPA Solar and Ushahidi demonstrate that it’s possible to build significant enterprises from a Kenyan base.
Logistics and supply chain companies benefit from world-class port infrastructure and ongoing investments in the Northern Corridor. The reforms to streamline customs and reduce transit times make Kenya an increasingly attractive hub for regional distribution.
FMCG businesses can leverage Kenya’s growing consumer market, established retail networks, and favourable trade agreements to access the broader EAC market. The combination of local demand and regional access creates compelling unit economics.
Agriculture and agri-tech companies have opportunities throughout the value chain, from inputs and equipment to processing and distribution. Government support for agricultural transformation, combined with growing farmer productivity, creates a favourable environment for innovation.
The bottom line
Kenya’s position as the gateway to East Africa isn’t accidental. It’s the result of decades of investment in infrastructure, a commitment to regional integration, and an entrepreneurial culture that embraces innovation.
The numbers tell part of the story: 300 million consumers, $14.54 billion digital payments market, 6,000 transactions per second on M-Pesa, 21.3 million tonnes through Mombasa Port. But numbers alone don’t capture the energy and opportunity that define Kenya’s business environment.
What sets Kenya apart is the ecosystem effect. When Microsoft, Visa, and the International Trade Centre choose Nairobi, they’re not just making a location decision; they’re validating the city’s potential as a regional powerhouse. When Safaricom expands to Ethiopia and Kenyan banks operate across multiple countries, they’re demonstrating the scalability of businesses built on a Kenyan foundation.
At C2Z Advisory, we help businesses navigate the complexities of East African expansion. Whether you’re a tech startup looking for your first regional office, a logistics company seeking to optimise supply chain operations, or an FMCG business planning regional distribution, Kenya offers compelling strategic advantages.
The question isn’t whether Kenya should be on your radar. The question is how quickly you can capitalise on the opportunities this market presents. One thing is certain: businesses that establish a strong presence in Kenya today will be well positioned to lead East Africa’s growth story for decades to come.
