A geopolitical and economic shift is taking place on Africa's M&A map in 2026: Kenya has overtaken Nigeria to become the continent's leading market for mergers and acquisitions. Nairobi is cementing its status as a continental hub, driven by a convergence of structural factors and landmark transactions.
Nairobi, Africa's deal capital
Kenya's rise rests on several pillars: the maturity of its financial market (NSE), a dense technology base (Nairobi Silicon Savannah), a regulatory framework conducive to cross-border transactions, and growing appetite from Gulf and Asian capital for the East African region. In 2026, Nairobi is not only concentrating tech and fintech deals, but also transactions in energy, infrastructure and agri-food sectors.
Nigeria's retreat: structural or cyclical?
Nigeria, long dominant in African M&A, is feeling the combined effects of naira instability, regulatory tensions and a business environment perceived as less predictable by foreign investors. This recomposition does not mean the erasure of Lagos, but the rebalancing toward Nairobi is now documented by industry operators.
Why it matters
For Indian Ocean investors — Mauritius leading the way with its offshore financial sector — this shift opens concrete opportunities. The Mauritian platform, a traditional bridge between Africa and Asia, is directly affected by the capital flows transiting through Nairobi. Fund managers and investment bankers based in Port Louis have every reason to strengthen their relationships with Kenyan deal-makers in this new context.
Sources: Rio Times Online, agenceecofin.com, Dabafinance (2026)