Nairobi ranked 26th globally for human capital as growth outlook rises

Nairobi has secured a notable global standing as the 26th city for human capital, according to the latest Oxford Economics Global Cities Index released for 2026. This ranking significantly surpasses Nairobi's overall position as the 327th most populous city among the 1,000 assessed. The index evaluates cities based on factors such as education, skills, and workforce availability, which are crucial in shaping a city's long-term economic potential.

Nairobi shares this distinction with Accra, Cairo, Dakar, and Luanda in the Oxford Economics "Cities to Watch" category, highlighting African urban centers that are expected to drive substantial economic growth in the coming decades. This ranking places a strong emphasis on Nairobi's skilled workforce as a cornerstone of its technology and financial services ambitions. The city currently serves as Kenya's primary commercial and financial hub.

Projections from Oxford Economics indicate that Nairobi's information technology sector will experience an annual growth rate of 5.5 percent over the next 25 years, while the finance sector is expected to expand by 4.1 percent annually during the same period. These projections are built upon the city's established technology ecosystem, earning it the nickname "Silicon Savannah" due to its concentration of technology firms, digital businesses, and fintech companies.

Over three-quarters of Kenya's financial activity is concentrated in Nairobi, bolstering its status as a significant regional financial center.

Beyond technology and financial services, Oxford Economics projects that Nairobi's industrial output will surpass $38 billion by 2050, representing an annual growth rate of approximately 4.4 percent. This expansion is anticipated to generate around 700,000 new industrial jobs, positioning Nairobi among the cities assessed with the highest projected increases in employment in industrial sectors.

The city's population is also expected to swell to approximately 12 million by 2050, intensifying the demand for housing, transportation, infrastructure, consumer services, and investment.

Nairobi is identified as East Africa's commercial hub and a gateway to the broader East African Community market. Improvements in transport and logistics are expected to facilitate regional integration. Globally, Nairobi, Accra, Cairo, Dakar, and Luanda are projected to account for about one-third of the GDP growth generated by African cities included in the index over the next 25 years.

For the Nairobi International Financial Centre (NIFC), these findings reinforce efforts to attract capital into sectors where Nairobi already boasts a strong concentration of talent and businesses. NIFC is focused on investing in technology, artificial intelligence, and financial services, aiming to expand access to growth capital for startups and micro, small, and medium-sized enterprises.

NIFC CEO Daniel Mainda emphasized the city's potential to become Africa's Capital of Capital, where global capital meets African opportunity, and funds are domiciled, businesses are scaled, and the continent's future is financed. Mainda stated that the challenge now lies in mobilizing investment to transform this potential into jobs and lasting prosperity.

The index underscores Nairobi's strong human-capital position while acknowledging its overall global ranking outside the top tier, highlighting the difference between the city's workforce strengths and its broader urban performance. Kenya will host the World Alliance of International Financial Centers Extraordinary General Meeting in Nairobi in April 2027, attracting representatives of international financial centers to further solidify the city's position as a regional destination for financial investment.