The AVCA 2018 Limited Partner Survey elevated Kenya to second place among African nations for private equity deal activity. The report highlighted the country's diversified economy, ongoing infrastructure projects, and role as East Africa's commercial center as key attractions for foreign capital.
Economic growth accelerated to 5.9% in 2018 from 4.9% in 2017, while Kenya climbed 19 spots in the World Bank's Ease of Doing Business rankings, reaching position 61. Regulatory changes, improved credit access, and structural reforms contributed to this progress.
Major private equity firms such as Ascent Capital, LeapFrog Investments, and Kibo Capital Partners have focused on consumer goods, technology, financial services, and real estate. Most investments remained below $50 million (KSh5 billion) per project.
Between 2013 and 2018, several private equity firms exited investments through trade purchases and peer acquisitions. Notable sellers included Catalyst Principal Partners and Actis, with nearly half of exits occurring via strategic sales.
