Local startups challenge big tech firms grip on Kenya’s digital advertising billions

Suss Ads founder and chief executive Dennis Maina /HANDOUT

Kenyan technology firms are stepping up efforts to capture a larger share of the country’s fast-growing digital advertising market, challenging the dominance of global platforms.

The push comes as spending on online advertising continues to rise, even as global technology companies continue to command the lion’s share of the market.

Data from the Communications Authority of Kenya’s Audience Measurement and Industry Trends Report for the third quarter of the 2025/26 financial year shows Meta remained the biggest beneficiary of local digital advertising budgets.

In the review period Facebook accounting for Sh6.1 billion, or 52 per cent of total spending, while Instagram attracted Sh3.2 billion, representing 27 per cent. YouTube captured 23 per cent of advertising expenditure and TikTok accounted for 10 per cent during the period.

Industry players say the dominance of global platforms has left many businesses dependent on advertising systems designed for mature markets that do not always reflect African consumer behaviour, internet connectivity patterns or media consumption habits.

As a result, a growing number of Kenyan advertising technology (AdTech) firms are developing home-grown software that they say is tailored to African consumers and businesses.

One of the firms, Nairobi-based Suss Ads, says demand for locally developed advertising technology has increased as more companies shift marketing budgets from traditional media to digital platforms, driven by higher smartphone penetration, expanding internet access and the growth of e-commerce.

“We realised early that technology designed for mature markets doesn’t always reflect how businesses and consumers interact across Africa. Businesses here need advertising solutions that understand local audiences, local publishers and the digital platforms people actually use every day,” said the firm’s founder and chief executive Dennis Maina.

Kenya’s internet advertising market is the fastest-growing in the world, projected to expand at a 16 per cent compound annual growth rate (CAGR) and reach $470 million (Sh60.82 billion) in revenue by 2029, according to the PwC Africa Entertainment & Media Outlook.

The startup notes that Africa presents unique challenges for advertisers because consumers often move between multiple social media platforms, messaging applications such as WhatsApp and mobile-based services, making it more difficult to execute targeted campaigns using conventional advertising tools.

Unlike global platforms that largely provide access to their own advertising ecosystems, local AdTech developers say they are increasingly focusing on software that allows businesses to plan, automate and monitor campaigns across several channels while measuring whether advertising spend translates into customer engagement and sales.

The trend also reflects a broader shift in Kenya’s technology sector, where startups are increasingly moving beyond offering digital services to building proprietary enterprise software aimed at solving local business challenges.

“Our platform is used by more than 30 organisations across sectors including banking, insurance, real estate and fast-moving consumer goods, pointing to a growing demand among businesses seeking greater visibility over their digital marketing investments,” added Maina.

He noted that investments in software engineering and data analytics capabilities, and employment of 22 specialists points to a wider trend of technology firms creating high-skilled digital jobs.

Maina said locally built technology gives African businesses an opportunity to address market-specific challenges that global software providers may overlook.

“We believe Africa should not only consume digital technology but also build it. The more we invest in local engineering talent and solutions designed for African markets, the stronger the continent’s digital economy will become,” he said.