Nairobi:Nairobi has been recognized as one of Africa’s top five Cities to Watch in the Oxford Economics Global Cities Index 2026, with expectations of significant growth in industrial output, financial services, and employment over the next 25 years.
According to Kenya News Agency, the Kenyan capital is joined by Accra, Cairo, Dakar, and Luanda in the report, with projections indicating these cities will collectively contribute to one-third of the GDP growth among African cities assessed. Nairobi ranks 327th globally among 1,000 cities but places 26th in human capital, highlighting its potential in talent development and economic productivity.
The Nairobi International Financial Centre (NIFC) has noted the report emphasizes the need for investment to support the city’s expanding economy, aiming to convert growth potential into employment opportunities and sustainable development. Nairobi is identified as East Africa’s commercial hub, bolstered by its financial services, technology talent, and digital infrastructure.
More than 75% of Kenya’s financial activity occurs in Nairobi, with its growing fintech sector enhancing its reputation as a regional financial and technology center, often called the ‘Silicon Savannah’. Oxford Economics forecasts annual growth of 5.5% in information technology and 4.1% in the finance sector over the next 25 years. Industrial output is expected to exceed $38 billion by 2050, with an annual real growth of 4.4%, potentially creating 700,000 industrial jobs.
The city’s population is projected to reach 12 million by 2050, increasing demand for housing, infrastructure, and investment. Improved transport and logistics networks are expected to bolster regional integration and trade across East Africa.
However, challenges of rapid urbanization are noted, stressing the importance of institutional capacity in managing growth. NIFC CEO Daniel Mainda emphasized the focus on attracting investment to support businesses and infrastructure, aiming to position Nairobi as Africa’s Capital of Capital.
Mainda highlighted Nairobi’s existing talent and technological capacity, with investment mobilization seen as key to unlocking growth potential. The NIFC prioritizes establishing investment funds targeting technology, artificial intelligence, and financial services to support start-ups and MSMEs.
Additionally, Mainda mentioned collaboration with regulators to develop a responsible digital-assets and fintech ecosystem. In sustainable finance, NIFC is working with the Capital Markets Authority on carbon-market regulations to mobilize climate finance. The Centre also aims to aid the National Infrastructure Fund by structuring investment vehicles for infrastructure projects, aligning with regulatory approvals.
The NIFC is a government initiative under the National Treasury, established to create a competitive financial center connecting global capital with investment opportunities in Kenya and Africa.
