Mombasa Climbs 22 Places as Nairobi Slips in Global Startup Rankings

Mombasa is gaining ground as a startup destination, even as Nairobi continues to dominate Kenya’s technology and innovation scene.

The coastal city has climbed 22 places in the latest StartupBlink Startup Ecosystem Index, moving from 916th globally in 2025 to 894th in 2026.

The improvement comes at a time when Kenya’s startup sector is facing a more difficult funding environment, with investors becoming more selective about where they put their money.

Mombasa gains ground

Mombasa’s rise may appear modest compared with the world’s biggest startup hubs, but the movement points to growing activity outside Nairobi. StartupBlink ranks cities using factors including startup activity, investment, talent and business conditions.

Mombasa is currently ranked 12th in Eastern Africa and 894th globally, with companies such as Watu Credit among the startups operating there.

The growth is significant because Kenya’s startup ecosystem remains heavily concentrated in the capital.

This gap shows why Mombasa’s improvement matters. A stronger startup scene in the coastal city could give entrepreneurs outside Nairobi better access to investors, talent, business networks and support programmes without having to relocate to the capital.

Nairobi remains Kenya’s strongest startup hub and continues to rank among Africa’s leading technology centres, but it has fallen in the global rankings.

The city is ranked 116th globally in 2026, compared with 107th in 2025. It remains first in Kenya and first in Eastern Africa.

The change comes as other African cities record stronger growth. Cape Town, for example, climbed 24 places to 114th globally, moving ahead of Nairobi.

Kenya’s startup funding slows

At the country level, Kenya dropped three places to 61st globally but retained its position as Africa’s second-ranked startup ecosystem.

The report said Kenya recorded negative growth of 0.2 per cent, a sharp slowdown from the 33.5 per cent growth recorded the previous year.

Despite the slowdown, Kenya remains the leading startup ecosystem in Eastern Africa. Its overall score is 2.6 times that of Mauritius, which is ranked second in the region.

The funding picture also shows the pressure facing Kenyan startups.

Kenyan startups raised Sh16.3 billion in the first six months of 2026, down slightly from the Sh17 billion raised during the same period last year.

Kenya ranked third in Africa for startup funding, behind Egypt, which attracted Sh42.3 billion, and Nigeria, which raised Sh32.8 billion.

The decline comes as investors place greater focus on sustainable businesses, revenue and clearer paths to profitability rather than rapid growth alone.

Even with the slowdown, Kenya remains an important startup market on the continent. The bigger challenge is ensuring that opportunities are not concentrated almost entirely in Nairobi.

Mombasa’s 22-place rise could be an early sign that Kenya’s startup story is slowly beginning to spread beyond the capital.