Kenya's global reputation has for decades been painted by lush tea plantations, coffee farms and flower exports.
Agriculture has long been the backbone of the country’s economy, contributing about a third of gross domestic product and directly or indirectly employing three-quarters of the population.
But beneath this familiar image of undulating green estates and auction houses, a new picture is emerging.
Kenya is rising as one of Africa’s most dynamic innovation hubs, where mobile money, digital startups and clean technology are beginning to rival traditional exports in shaping the country’s economic future.
According to the inaugural Allison Africa Business Cultural Intelligence Report 2024, the diversified sectors include agriculture, tourism, telecommunications and financial services.
“The country has successfully created a dynamic and diversified economy driven by public infrastructure projects, robust private and public sector investment, consumer demand and strategic economic and fiscal policies,” said Allison managing director for Africa Claudine Moore.
While agriculture still dominates, accounting for 33 per cent of GDP, the report highlights a structural shift as technology, finance and telecommunications are increasingly driving growth and attracting foreign investment.
However, it notes that Kenya’s fields are far from fading. Tea, coffee, vegetables and cut flowers continue to anchor the country’s foreign exchange earnings.
The report points out that tea and coffee continue to dominate auction houses, while horticulture maintains Kenya’s status as one of the world’s top flower exporters.
Tourism too has staged a post-pandemic comeback. International arrivals rose to 1.75 million last year, up from 1.48 million in 2022, generating $2.06 billion (Sh265.79 billion) in revenue.
Together with agriculture, these sectors ensure a steady inflow of foreign currency, cushioning the economy against global headwinds.
“The most important export products are tea, coffee, flowers and vegetables, with trade, tourism and telecommunications being the fastest-growing service industries,” says Moore.
“Tourism is one of the primary foreign exchange earners, alongside diaspora remittances, which reached a record $4.19 billion (Sh540.61 billion) in 2023, significantly boosting Kenya’s current account balance.”
Yet, as the report notes, relying solely on such traditional exports has left Kenya exposed to volatility—climate change, shifting global demand, and commodity price fluctuations all pose risks.
The report by Allisson says that to build resilience, policymakers and entrepreneurs are betting on a different kind of harvest digital innovation.
Kenya remains the largest economy in East Africa, with a GDP of $95 billion (Sh12.27 trillion) and forecast growth of 6.3 per cent this year.
“Kenya’s capital, Nairobi, has earned the moniker “Silicon Savannah” for its role in spearheading Africa’s technology revolution. Much of this transformation can be traced back to M-Pesa, the mobile money platform launched in 2007 that now serves more than 50 million active users across seven African countries,” reads the report.
By leapfrogging traditional banking, M-Pesa not only deepened financial inclusion but also laid the foundation for a thriving fintech ecosystem.
Despite a drop in the number of investments that tech ventures in the country attracted in 2024, Kenya led the continent, attracting 29 per cent of Africa's total startup funding.
According to The Big Deal Africa, this was equivalent to $638 million (Sh82.43 billion).
However, it was a drop from 2023, when Kenya bucked continental trends by attracting $674 million (Sh87.08 billion) in startup investment, representing 28 per cent of Africa’s total that year and outpacing larger economies like Nigeria and South Africa.
The top-funded sectors were fintech, e-commerce, agri-tech, e-health and logistics, underscoring the breadth of innovation.
“Foreign direct investment in clean energy projects has surged, with nearly half of the capital raised by private venture-backed firms in 2022 flowing into clean tech,” reads the report
The report further points out that government policy is also nudging the shift, Kenya’s ten-year Digital Masterplan, launched in 2022, prioritises infrastructure, skills and innovation.
The government has allocated more than $100 million (Sh12.9 billion) for ICT initiatives in the current fiscal year, including integrating coding into the national curriculum—the first country in Africa to do so.
The United States has emerged as the leading investor, with $748 million (Sh96.64 billion) in foreign direct investment flowing into Kenya in 2023, according to Ernst & Young.
American companies see the country not just as a market, but as a launchpad into the wider region.
