Kenya has been ranked first in Africa’s Most Competitive Economy and 56th globally in 2025.

International Institute for Management Development (IMD) report states that Kenya beat Botswana, Ghana, South Africa, and Nigeria globally as it joins Namibia and Oman as the newest entrants in the influential index’s 37-year history.

Kenya’s historical entry in the global economic arena places it at a strategic position of attracting investment, generate jobs, and deliver products and services that meet global standards.

Meaning of “Global Competitiveness”

It is a state in which the country is capable of producing and delivering high-quality goods and services that can compete internationally while ensuring sustained economic growth and a high standard of living for its citizens.

Among factors that builds up competitiveness include institutions, policies, productivity, innovation, infrastructure, and a stable macroeconomic environment.

However, organizations like the World Economic Forum and IMD measure competitiveness using comprehensive data, such as the Global Competitiveness Index (GCI).

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What IMD Uses to Determine Country’s Competitiveness

IMD heavily relies on four pillars which includes, economic performance, government efficiency, business efficiency, and infrastructure.

This significant developments comes as each pillar joins hard data with surveys of business executives, capturing both measurable outcomes and perceptions from those operating within the economy.

In total, 336 indicators are used to assess performance, emphasizing execution and measurable results over policy announcements.

How Kenya Made it

• Infrastructure

Their has been massive improvement in country’s infrastructure notably at the Mombasa port and through new energy projects, easing bottlenecks and enhancing reliability for businesses.

• Digitalisation

Kenya had digitalized many systems that has led to faster licensing processes, simplified tax systems, and expanded digital public services boosting efficiency and investor confidence.

• Macroeconomic Stability

Gradual improvement in macroeconomic arena as a result of fiscal controls, prudent spending, and currency stabilization, boosted the country’s competitiveness.

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Additionally, other relevant sectors that strengthened the country’s economy included, market size, reflecting Kenya’s position as East Africa’s largest economy with a growing consumer base and regional trade influence.

Innovation capability was also noted, which helped in mobile technology and fintech solutions, positioning Nairobi as a leading innovation hub in Africa.

These factors, combined with a relatively diversified economy, have underpinned Kenya’s rise on the global competitiveness map.

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Aerial view of Nairobi City. PHOTO/A