Kenya ranked number 1 in Africa in IMD's Global Competitiveness rankings

[RV Heavy Hitter!]

• Tweet

Kenya on the runway. 10-15 years from now, Kenya will be the place to be. There will be serious immigration issues and people slowly bursting through the border. Population will likely swell to almost 90+ million, especially from neighbouring Sudan, TZ, Sudan, DRC, Uganda, Ethiopia, Burundi, and Rwanda.

Kenya has made its first-ever entry into the IMD World Competitiveness Ranking and has been ranked Africa’s Most Competitive Economy by the International Institute for Management Development (IMD) in 2025.


The ranking places Kenya as number one in Africa and 56th globally.

Kenya made its debut, joining Namibia and Oman as the latest additions in the influential index’s 37-year history.

The new 2025 ranking places Kenya on the global map at a time when economic shifts, regional realignments, and rising government efficiency are reshaping competitiveness worldwide.

The survey shows that Kenya’s competitiveness landscape has shifted noticeably over the last five years, with rankings fluctuating across key economic and institutional pillars.

Overall national performance shows a steady climb from 2021, peaking in 2024 before easing slightly in 2025. The strongest gains appear in areas such as the domestic economy, international trade, and the institutional framework, reflecting improved macroeconomic stability and governance reforms.

However, challenges persist in sectors like scientific infrastructure, technological readiness, and education, which continue to post weaker scores. Social indicators, including attitudes and values and the societal framework, also show mixed progress.

The survey highlighted some of the challenges that Kenya faces in its quest to be the most competitive nation globally.

The IMD report cited civil unrest and demonstrations, severe flooding caused by heavy rainfall, and heightened political instability, including the impeachment of the deputy president.

[Modesty Blaise]

No 1 Most Competitive Economy in Africa is a big achievement.

About people pouring over the Tanzania or UG border like the US southern border  - hio nayo tutaona. If they are not doing so today despite years of misgovernance there compared to Kenya. If Ruto pulls a Suluhu in 2027 as looks likely it might actually be the opposite.

Kenya on the runway. 10-15 years from now, Kenya will be the place to be. There will be serious immigration issues and people slowly bursting through the border. Population will likely swell to almost 90+ million, especially from neighbouring Sudan, TZ, Sudan, DRC, Uganda, Ethiopia, Burundi, and Rwanda.

The ranking places Kenya as number one in Africa and 56th globally.

[Kadudu]

If Kenya is number 1 in Africa, then I pity the rest of Africa.

[RV Heavy Hitter!]

There are a lot of things happening in Kenya. If you know, you know. I have 10 acres a few kilometres from Vipingo collecting dust for now, but soon it will be a boom place once we get those 50 by 100 plots going!

[Modesty Blaise]

Just responding to RVHH.

I don't attach much weight to IMD - it looks like a briefcase NGO cutting a niche. A quick prompt on Gemini confirms this.

Here is what Gemini (Google AI) thinks are the more important economic reports for investors:

• World Investment Report (FDI Flows) (Publisher: UNCTAD)
  Relevance: Tracks actual foreign direct investment (FDI) inflows, revealing where capital is truly flowing based on concrete investment actions.
  Kenya's Standing (Africa): Kenya significantly lags behind top FDI recipients in Africa like Egypt and South Africa, with a low FDI-to-GDP ratio (0.2% in 2024), indicating that despite positive rankings, challenges still temper actual investment.
  What Investors See: Low FDI figures compared to its ranking suggests underlying issues deterring foreign capital.
  
  
  
• Corruption Perception Index (CPI) (Publisher: Transparency International)
  Relevance: Measures perceived levels of public sector corruption, which is a major deterrent for foreign investment due to increased business costs and risks.
  Kenya's Standing (Africa): 13th in Africa, 121st globally in 2024, placing it behind peers like Botswana and Rwanda.
  What Investors See: Persistent corruption is a significant risk factor that can undermine profitability and operational efficiency.
  
  
  
• Global Innovation Index (GII) (Publisher: WIPO)
  Relevance: Ranks the innovation ecosystem, covering inputs like research and infrastructure and outputs like patents. Crucial for tech-focused investors.
  Kenya's Standing (Africa): 9th in Africa, 102nd globally in 2025, a steady decline from its previous performance. Kenya's innovation inputs rank poorly, indicating underinvestment in research.
  What Investors See: While strong on entrepreneurial activity, a weak underlying innovation ecosystem suggests hurdles for sustained, high-tech growth.
  
  
  
• Investment Climate Statements (Publisher: U.S. Department of State)
  Relevance: Detailed qualitative analysis of a country's legal, regulatory, and political environment from the U.S. perspective.
  Kenya's Standing (Africa): Not a quantitative rank, but the 2025 report notes a sophisticated capital market and no restrictions on fund transfers, while also highlighting concerns about corruption, political risk, and sector-specific ownership requirements.
  What Investors See: Provides nuanced, on-the-ground insights beyond broad metrics.
  
  
  
• Ibrahim Index of African Governance (IIAG) (Publisher: Mo Ibrahim Foundation)
  Relevance: A comprehensive index assessing governance across safety, rule of law, economic opportunity, and human development.
  Kenya's Standing (Africa): In 2022, Kenya ranked 13th in Africa. Recent trends show slowing progress, with gains in infrastructure overshadowed by deteriorations in the rule of law and safety.
  What Investors See: Deterioration in safety and rule of law is a red flag for long-term stability and political risk.
  

• IMD World Competitiveness Ranking (Publisher: IMD)
  Relevance: High-level indicator of economic health and potential based on executive perceptions and statistical data across economic performance, government efficiency, business efficiency, and infrastructure.
  Kenya's Standing (Africa): 1st in Africa, 56th globally in 2025.
  What Investors See: A signal of positive direction and potential, though it's important to remember this is a broad measure.
  

The IMD ranking is a distant mkia in importance but is still commendable. Not often does Kenya get to beat Rwanda and Botswana.

If Kenya is number 1 in Africa, then I pity the rest of Africa.