Oxford Economics has placed Nairobi among the top five African cities to watch in its Global Cities Index 2026. The index ranks 1,000 cities worldwide, with Nairobi placing 327th overall. However, the city stands out in the human-capital dimension, ranking 26th globally. This ranking reflects Nairobi's strong foundation in education and talent, which is expected to drive future growth.
The Oxford Economics report projects Nairobi's finance and information-technology sectors to experience strong growth over the next 25 years. The finance sector is expected to expand at an average of 4.1% per year, while the information-technology sector is projected to grow at 5.5% per year. This growth is expected to create new opportunities for businesses and investors in the city.
Nairobi's role as a gateway for businesses targeting the East African Community's markets is reinforced by its concentration of financial activity. More than three-quarters of Kenya's financial activity is already centered in the capital. The city's industrial output is forecast to exceed $38 billion by 2050, reflecting a real annual growth rate of 4.4%. This growth is expected to create approximately 700,000 new industrial jobs.
The report also forecasts significant growth in Nairobi's population, which is expected to almost double to roughly 12 million by 2050. This rapid urbanization will turn Nairobi into a megacity, heightening demand for housing, infrastructure, and services. However, the think-tank warns that this growth will pressure institutional capacity and infrastructure.
To address these challenges, Oxford Economics emphasizes the need for sustained investment in transport, logistics, and public services. The report highlights the importance of investing in infrastructure to support the city's growth and development. This investment will be crucial in ensuring that Nairobi's growth is sustainable and equitable.
Daniel Mainda, chief executive of the Nairobi International Financial Centre, noted that the findings underscore the task of converting Nairobi's talent, technology, and industrial momentum into concrete investment, jobs, and lasting prosperity. He emphasized the need for stakeholders to work together to achieve this goal and ensure that Nairobi's growth benefits its citizens.
The Oxford Economics Global Cities Index 2026 lists Nairobi alongside Accra, Cairo, Dakar, and Luanda as five African cities to watch. The index provides a comprehensive ranking of cities worldwide, taking into account various factors such as human capital, infrastructure, and economic growth. Nairobi's ranking in the index reflects its potential for future growth and development.
Key points
- Nairobi ranks 26th globally in human capital, reflecting its strong foundation in education and talent.
- The city's finance and information-technology sectors are projected to grow strongly over the next 25 years.
- Nairobi's population is expected to almost double to roughly 12 million by 2050, turning it into a megacity.
