Kenya, Oct 1 – Nairobi’s technology and industrial sectors are expected to become major drivers of the city’s long-term economic expansion, with Oxford Economics projecting sustained growth in both sectors through 2050
The Oxford Economics Global Cities Index 2026 forecasts average annual growth of 5.5 percent in information technology and 4.1 percent in finance over the next 25 years.
The report also projects Nairobi’s industrial output will surpass US$38 billion (Sh4.9 trillion) by 2050, growing by an average 4.4 percent annually in real terms.
The expansion could create about 700,000 additional industrial jobs, placing Nairobi among the cities assessed by Oxford Economics with the largest projected increases in industrial employment.
The report listed among five African Cities to Watch alongside Accra, Cairo, Dakar and Luanda.
The city ranks 327th among 1,000 cities globally, but places 26th for human capital, highlighting its relatively strong pool of skilled workers and talent.
The projections come as Nairobi remains Kenya’s main commercial and financial center, with its technology ecosystem supporting the growth of fintech and other digital businesses.
Oxford Economics also expects Nairobi’s population to reach 12 million by 2050, increasing demand for housing, transport, infrastructure, consumer services and investment.
However, the population growth is likely to increase pressure on existing urban infrastructure and public services, making investment and institutional capacity important to sustaining economic growth.
The report identifies Nairobi as East Africa’s commercial anchor and a gateway to the wider East African Community market, while highlighting transport and logistics improvements as important to regional integration.
Nairobi International Financial Centre (NIFC) CEO Daniel Mainda said the challenge will be to translate the city’s projected growth into investment and employment.
“Our ambition is to build Nairobi into Africa’s Capital of Capital the place where global capital meets African opportunity, where funds are domiciled, businesses are scaled and the continent’s future is financed,” Mainda said.
“Oxford Economics has identified the talent, technology and industrial momentum. Our task is to mobilize the investment that turns this potential into jobs and lasting prosperity.”
NIFC says it is developing investment structures targeting technology, artificial intelligence, financial services, climate finance and infrastructure, while working with regulators and other institutions.
