Kenya Ranked Africa’s Most Competitive Economy in First-Ever Entry Into IMD Global Index
Kenya has been named Africa’s Most Competitive Economy after making its first appearance in the prestigious IMD World Competitiveness Ranking, marking a significant milestone in the country’s global economic profile.
The 2025 report, released by the International Institute for Management Development (IMD), places Kenya 56th worldwide and first on the African continent, ahead of economies such as Botswana, Ghana, South Africa, and Nigeria. This is the first time Kenya has been included in the influential index in its 37-year history, joining new entrants Namibia and Oman.
IMD said Kenya’s debut comes at a moment of “rapid global realignment”, with economic resilience, government efficiency and policy adaptability becoming critical differentiators among nations.
Five-Year Transformation and Mixed Sector Performance
According to IMD, Kenya’s competitiveness profile has evolved notably over the past five years. The data shows that the country recorded steady improvements from 2021, peaking in 2024 before easing slightly in 2025. The strongest gains were observed in the domestic economy, international trade, and institutional framework, pointing to improved macroeconomic stability and governance reforms.
However, Kenya continues to face structural challenges. The report highlights persistent weaknesses in scientific infrastructure, technological readiness, and education, areas where the country’s scores remain comparatively low. Social indicators—including attitudes, values, and the broader societal framework—showed uneven progress.
IMD noted that national competitiveness was significantly affected by domestic disruptions. The report cites “civil unrest and demonstrations, severe flooding triggered by heavy rainfall, and heightened political instability, including the impeachment of the deputy president,” as key factors undermining confidence in the business environment.
It further warns that Kenya’s rising public debt and increased taxes on individuals and companies have “strained economic sentiment”, limiting momentum in several sectors.
‘Growing International Recognition’
Despite these hurdles, IMD analysts say Kenya’s inclusion in the index signals renewed global recognition.
In a briefing accompanying the report, IMD stated:
“As a first-time entrant, Kenya joins the global competitiveness conversation at a crucial moment. The country’s performance reflects both rising potential and the need for targeted reforms to strengthen innovation capacity and enhance long-term resilience.”
Analysts believe Kenya’s next phase of progress will depend on boosting labour productivity, deepening innovation ecosystems, and investing in institutions that enhance economic stability.
Global Results: Switzerland Retains No. 1 Spot
The 2025 ranking also confirms Switzerland as the world’s most competitive economy, followed by Singapore and Hong Kong.
Switzerland’s position was supported by its strong infrastructure and exceptional government efficiency, although IMD noted slight declines in business efficiency and economic performance. Swiss executives expressed concern over “the openness of public-sector contract awards to foreign bidders.”
Singapore, which fell from first to second place, recorded the world’s strongest economic performance driven by robust GDP growth, rising capital formation and increased exports. However, local executives warned that “business relocation” remains a major threat to the island’s long-term competitiveness.
Hong Kong climbed two places to third after improvements across all four competitiveness pillars. Despite these gains, executives said that auditing and accounting standards appeared “less adequately implemented” than in previous years.
Regional Trends and Shifting Global Supply Chains
The IMD report reveals significant regional shifts. African economies demonstrated “promising momentum”, with all six African nations in the study performing above the global average in economic opportunities. South Africa and Namibia ranked among the global top 10 in that category.
However, the continent continues to register high concern over the quality of education and healthcare systems.
Eastern Asia remains competitive but is experiencing pressure from rising tariffs and geopolitical tensions. Western Europe continues to lead globally on social cohesion but faces increasing identity-based polarisation.
The survey also notes accelerated efforts by companies worldwide to diversify supply chains to avoid reliance on a single region. In Africa, the African Continental Free Trade Area (AfCFTA) is beginning to show “early but encouraging signs” of boosting intra-African trade flows.
Methodology Behind the Ranking
The IMD World Competitiveness Ranking evaluates 69 economies using 164 core indicators drawn from statistical data and executive perceptions.
Two-thirds of the final score comes from “hard data” sourced from international and national institutions, while the remaining third is based on an online survey conducted between February and May 2025. This year’s survey included 6,162 executives, who rated multiple aspects of competitiveness on a six-point scale.
IMD says the results are standardised to ensure comparability across diverse economic environments, before being aggregated into four major pillars:
- Economic performance
- Government efficiency
- Business efficiency
- Infrastructure
Each pillar comprises five equally weighted subcategories.
Full IMD World Competitiveness Ranking 2025 (1–69)
- Switzerland
- Singapore
- Hong Kong SAR
- Denmark
- United Arab Emirates
- Taiwan
- Ireland
- Sweden
- Qatar
- Netherlands
- Canada
- Norway
- United States
- Finland
- Iceland
- China
- Saudi Arabia
- Australia
- Germany
- Luxembourg
- Lithuania
- Bahrain
- Malaysia
- Belgium
- Czech Republic
- Austria
- South Korea
- Oman
- United Kingdom
- Thailand
- New Zealand
- France
- Estonia
- Kazakhstan
- Japan
- Kuwait
- Portugal
- Latvia
- Spain
- Indonesia
- India
- Chile
- Italy
- Cyprus
- Puerto Rico
- Slovenia
- Jordan
- Hungary
- Romania
- Greece
- Philippines
- Poland
- Croatia
- Colombia
- Mexico
- Kenya
- Bulgaria
- Brazil
- Botswana
- Peru
- Ghana
- Argentina
- Slovak Republic
- South Africa
- Mongolia
- Türkiye
- Nigeria
- Namibia
- Venezuela
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Kenya Ranked Africa’s Most Competitive Economy in First-Ever Entry Into IMD Global Index