The number of disclosed private investment deals in the East Africa region jumped by 10 percent in the seven months to July 2026, with venture capital and private equity investors remaining bullish despite global shocks from the conflict in the Middle East.
Analysis done by investment firm I and M Burbidge Capital shows that there were 66 transactions recorded in the seven months to July, up from 60 in the corresponding period in 2025.
The analysis tracks disclosed investments across East Africa in private equity, venture capital, mergers and acquisitions, commercial and private debt, and investments by development finance institutions (DFIs).
This year, firms have transacted deals under difficult investment conditions due to the war in Iran.
I and M Burbidge Capital noted that higher inflation due to the conflict has been driving capital flows towards developed markets, making it harder for emerging and frontier economies to attract investments.
The rising geopolitical risk has also pushed up the cost of financing for those using debt to fund their investments into the region. Despite these constraints, the deals pipeline has remained resilient this year, primarily driven by private equity transactions that totalled 32 in the seven months, and mergers and acquisitions at 20 transactions.
‘Across the region, governments continued to navigate fiscal pressures, elevated financing costs and external funding requirements, contributing to a cautious investment environment,’ said I and M Burbidge Capital in its East Africa Financial Review report of July 2026.
The firm added that the flow of transactions has shown that investors retain confidence in East Africa’s long-term investment case, while highlighting a market that is becoming increasingly sophisticated, selective, and driven by strategic rather than purely opportunistic capital deployment.
In terms of disclosed value of deals, the total as at July 2026 stood at $1.03 billion (Sh132.7billion), down from $1.18 billion (Sh152.4 billion) in the same period last year.
The lower disclosed value this year relative to the higher number of deals indicates that more of the transaction values were kept private, but also that they have lower ticket prices per deal compared to the corresponding period last year. A number of PE and venture capital firms do not announce the financial value of their transactions, citing confidentiality clauses in deal agreements.
In terms of geographical spread, Kenya continued to host the bulk of the region’s transactions. Nairobi’s status as the regional financial and air transport helps attract deals to the country, including for those firms looking to establish a regional presence.
Kenya led with 43 transactions as at July, followed by followed by Uganda at 12 deals, Ethiopia and Tanzania at four each and Rwanda at three transactions.
Some of the notable deals in Kenya this year include electric motorcycle company Spiro raising $215 million (Sh27.8 billion) from a group of investors led by its Dubai-based parent Equitane and Danish DFI Impact Fund Network to expand its battery-swapping network.
Spiro separately raised $55 million (Sh7.1 billion) from Chinese investment fund NewTrails Capital for the network expansion.
In July, Indian beverage group Varun Beverages Limited acquired the dairy beverages, juices and packaged drinking water business of Devyani Food Industries Kenya Limited for $32 million (Sh4.1 billion).
In June, CFAO Mobility Kenya took a controlling stake of 99.4 percent stake in Thika-based Kenya Vehicle Manufacturers (KVM) after investing Sh2.4 billion in the assembler.
In other deals this year, agriculture firm AgDevCo made a Sh1.94 billion follow-on investment in Victory Group, an East African aquaculture company producing and distributing Nile tilapia on Lake Victoria, in April.
In January, German air cargo company Celebi Cargo GmbH acquired freight handling firm Transglobal Cargo Centre Limited from businessman Peter Muthoka for Sh5.2 billion, while global fund Mirova announced a Sh2.45 billion investment in Cold Solutions Kiambu, which provides temperature-controlled warehouse and logistics services for the agriculture and pharmaceutical sectors in Kenya.