Nairobi has been selected as one of Africa's five cities to watch in the Oxford Economics Global Cities Index 2026. The ranking places Nairobi alongside Accra, Cairo, Dakar, and Luanda as a city expected to play an increasingly important role in the continent's economic growth over the next 25 years. The city's technology, financial services, industrial, and demographic strengths underpin its outlook.
According to the Oxford Economics report, Nairobi ranks 327th overall among 1,000 cities globally but performs strongly on human capital, where it is ranked 26th. The report describes Nairobi as East Africa's commercial anchor and a natural gateway to the expanding markets of the East African Community. More than three-quarters of Kenya's financial activity is concentrated in the capital, strengthening its position as the country's leading financial centre.
Nairobi's technology ecosystem has expanded rapidly, earning the city the nickname "Silicon Savannah". The city's pool of technology talent, digital infrastructure, and innovation ecosystem have attracted investment into fintech and related industries. Oxford Economics forecasts that Nairobi's information technology sector will grow by an average 5.5 per cent annually over the next 25 years, while finance is projected to expand by 4.1 per cent a year.
The growth outlook extends beyond services, with manufacturing and industrial activity expected to become an increasingly important source of jobs and economic output. Oxford Economics projects Nairobi's industrial output will exceed $38 billion by 2050, representing average real growth of 4.4 per cent annually. The expansion is expected to generate approximately 700,000 additional industrial jobs, placing Nairobi among the cities assessed by Oxford Economics with the largest projected increases in industrial employment.
The report also highlights Nairobi's demographic expansion as an important driver of future economic activity. The city's population is projected to reach 12 million by 2050, creating additional demand for housing, transport, infrastructure, consumer services, and investment. Improved transport and logistics infrastructure is expected to support Nairobi's integration with regional markets and strengthen its role as a distribution and commercial centre for East Africa.
However, the projected expansion also brings pressure on infrastructure and urban services, with the report pointing to the need for continued institutional strength as Nairobi manages rapid urbanisation. The Nairobi International Financial Centre (NIFC) is prioritising the establishment and domiciliation of investment funds and sector-specific vehicles targeting technology, artificial intelligence, and financial services.
The NIFC is working to mobilise investment that turns Nairobi's potential into jobs and lasting prosperity. The Centre's chief executive officer, Daniel Mainda, stated that the ambition is to build Nairobi into Africa's Capital of Capital, where global capital meets African opportunity. Nairobi will also host the World Alliance of International Financial Centers (WAIFC) Extraordinary General Meeting (EGM) in April 2027.
Key points
- Nairobi ranks 327th overall among 1,000 cities globally, performing strongly on human capital, ranked 26th.
- The city's technology ecosystem has expanded rapidly, earning the city the nickname "Silicon Savannah".
- Nairobi's industrial output is projected to exceed $38 billion by 2050, representing average real growth of 4.4 per cent annually.
