Nairobi has been ranked among Africa's five cities to watch over the next 25 years, with Oxford Economics projecting strong growth in the capital's technology, financial, and industrial sectors. According to the Oxford Economics Global Cities Index 2026, Nairobi ranks 327th among 1,000 cities globally and 26th in human capital. The city's growth potential is attributed to its position as East Africa's commercial anchor and a gateway to the expanding East African Community market.
More than three-quarters of Kenya's financial activity is concentrated in Nairobi, which has strengthened its position as a regional technology and financial hub. The city's technology workforce, digital infrastructure, and innovation ecosystem have contributed to its growth potential. Oxford Economics forecasts average annual growth of 5.5 per cent in information technology and 4.1 per cent in finance over the next 25 years. This growth is expected to extend beyond the services sector, with Nairobi's industrial output projected to surpass $38 billion by 2050.
The growth in Nairobi's industrial sector is expected to create about 700,000 additional industrial jobs, placing the city among those with the largest projected increases in industrial employment. The report also projects that Nairobi's population will reach 12 million by 2050, driven partly by continued urbanization and improvements in transport and regional connectivity. This growth highlights the need for increased investment in the city to support its development.
The Nairobi International Financial Centre (NIFC) has welcomed the ranking and is working to establish and domicile investment funds and sector-specific vehicles targeting technology, artificial intelligence, and financial services. The aim is to expand access to long-term capital for startups and micro, small, and medium-sized enterprises. The NIFC is also working with regulators to support the development of a digital-assets and fintech ecosystem.
In sustainable finance, the NIFC is working with the Capital Markets Authority and other stakeholders on carbon-market regulations and investment structures aimed at attracting climate finance. The Centre also plans to support the National Infrastructure Fund by helping structure and domicile project-specific investment vehicles that can connect priority infrastructure projects with domestic and international institutional investors.
NIFC Chief Executive Officer Daniel Mainda stated that the Centre's ambition is to build Nairobi into Africa's Capital of Capital, where global capital meets African opportunity, and businesses are scaled. He emphasized that Oxford Economics has identified the talent, technology, and industrial momentum, and the task is to mobilize the investment that turns this potential into jobs and lasting prosperity.
The NIFC's role in supporting the National Infrastructure Fund will complement the Fund's mandate and remain subject to applicable regulatory approvals. Nairobi joins Accra, Cairo, Dakar, and Luanda on the list of African cities identified for their long-term growth potential, collectively accounting for about one-third of the GDP growth generated by African cities included in the index over the next 25 years.
Key points
- Nairobi ranked among Africa's five cities to watch for long-term growth
- Oxford Economics projects strong growth in Nairobi's technology, financial, and industrial sectors
- NIFC working to establish investment funds and support development of digital-assets and fintech ecosystem
