Nairobi's financial hub status puts capital city on global investors' radar

East Africa’s financial hub has been cited among the top cities that are primed to attract investors through innovation, tech dynamism and demographic momentum.

Nairobi has earned a spot among the top five cities to watch in the latest Oxford Economics Global Cities Index 2026, due to its financial hub status.

Nairobi is now listed alongside Accra (Ghana), Cairo (Egypt), Dakar (Senegal), and Luanda (Angola) in a new category introduced by the index.

This after Nairobi was cited in the list of cities that Oxford Economics thinks investors should watch out for innovation.

Director City Services Liam Sides explains that the purpose of this new category is an attempt to dilute a world of opportunity into a small, fast-growing subset of places that are increasingly attractive places for talent and innovation.

“There is so much going on below the surface, with cities and regions regularly outperforming their national economies and offering substantial growth opportunities for investors,” he says. “These cities are emblematic of that diversity.”

Oxford Economics says Nairobi is entering a new stage of global growth, building on its role as East Africa’s commercial anchor and driven by tech dynamism and demographic momentum.

The city has also asserted itself as an innovation hub, with highly concentrated sectors like finance and tech boosting the city’s profile.

Additionally, its young and rapidly expanding workforce is also reshaping the city’s economic structure, driving strong employment growth in consumer services and cementing Nairobi’s position as a major industrial centre.

It says that as the city navigates the pressures of rapid urbanisation associated with its gradual expansion into a megacity, continued institutional strength and a dynamic digital economy will enable it to play an increasingly pivotal role in Africa’s urban future.

“The city’s position as a regional financial hub is underpinned by Kenya’s strategic role within the East African Community and the city’s expanding knowledge-based economy,” the report says. “This enables the city to serve as a natural gateway for firms to fast‑growing regional markets.”

It notes that over three-quarters of Kenyan financial activity is situated in Nairobi, and this concentration reflects an increasingly sophisticated services base and rising demand for banking, investment, and fintech activity across East Africa.

“Nairobi’s reputation as the ’Silicon Savannah’ is especially well earned, given that fintech has seen substantial investment and is making an increasingly important contribution to the economy. As a result, finance and IT will be Nairobi’s fast-growing sectors at 4.1 per cent and 5.5 per cent per year, respectively, over the next 25 years,” the report says.

This will bolster the city’s push to be a leading financial centre and tech magnet in the region. This is in addition to Nairobi benefiting from a shifting global industrial landscape, with cities across the region expected to see significant gains in industry.

Nairobi International Financial Centre (NIFC) Chief Executive Daniel Mainda said the ranking tallies with the agency’s intention of transforming Nairobi into a global financial centre.

“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,” he said.

“Oxford Economics has identified the talent, technology and industrial momentum. Our task is to mobilise the investment that turns this potential into jobs and lasting prosperity.”

According to the Oxford Economics publication, Nairobi is projected to generate industrial output surpassing Sh4.9 trillion ($38 billion) by 2050, growing by 4.4 per cent per year in real terms.

It says major construction projects meant to address ageing infrastructure have further reinforced Nairobi’s momentum.

“Upgrades to transport and logistics networks have improved connectivity across the region, supporting broader economic integration, especially in industry and manufacturing,” the report says. “With industrial activity nearly tripling, the resulting output surge will fuel substantial employment growth, adding an estimated 700,000 jobs.”

The report says while Nairobi is establishing itself as the Silicon Savannah, Accra, on the side of the continent, is following a similar trajectory. Its growing tech sector and strengthening business services base are helping it emerge as West Africa’s next major innovation centre.

Dakar, meanwhile, is growing into a higher‑value centre for professional and scientific services.

“Rapid workforce upskilling and strategic investments in knowledge‑based sectors are pushing the Senegalese capital into an increasingly influential role,” the report says.

Luanda, on its side, is accelerating efforts to modernise its port and broaden its economic base beyond oil.

This is as Cairo, Africa’s largest and most diversified economy, continues to leverage its strategic geographic location, deep trade links, and expanding tech sector to reinforce its position as a continental powerhouse.

“Together, these five cities are set to generate a third of gross domestic product (GDP) growth among African cities on the Global Cities Index in the next 25 years—an indication of Africa’s accelerating urban transformation,” the report says.