Key questions:
  1. Why are climate startups leveraging pay-as-you-go financing models?
  2. How will climate financing models evolve in 2024?

As Africa struggles to confront the looming climate dilemma, one country seems poised to lead Africa’s clean-energy transition: Kenya. 



As the chart above shows, Kenya attracted 63% of Africa’s climate tech funding in 2023. As we’ve previously written, Kenya’s robust renewables infrastructure, pro-climate government policies, and eco-friendly consumer habits make it an investor favourite.

‘Climate tech’ captures a broad group of solutions, services, and technology that help consumers, industries, and companies mitigate, adapt, monitor, or respond to climate change. 

The image below details the sectors and sub-sectors within climate-tech:

Between 2020 and 2023, 80% of global VC funding into climate tech went to the ‘Big Three’: energy, transportation, and agriculture. 

Kenya’s climate investments are less diversified. Investors are piling into one vertical: energy. 80% of funding went to clean energy startups in 2023. 



As the chart shows, investors have shifted focus. In 2019, they favoured agri-tech startups (56% ). However, clean