AI ILLUSTRATIONKenya 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.
Other factors include rising national debt and increased taxes on citizens and businesses, which the report says have further strained economic confidence, weighing down Kenya’s competitiveness outlook.
Kenya’s next phase of competitiveness will depend on strengthening innovation capacity, improving labour productivity, and investing in systems that support long-term economic resilience.
As a first-time entrant, Kenya’s inclusion signals growing international recognition of its economic potential. The country now joins the global conversation on competitiveness at a time when government efficiency, policy agility and economic resilience are becoming defining factors for long-term success
IMD WORLD COMPETITIVENESS RANKING 2025: FULL LIST (1–69)
1. Switzerland
2. Singapore
3. Hong Kong SAR
4. Denmark
5. United Arab Emirates (UAE)
6. Taiwan (Chinese Taipei)
7. Ireland
8. Sweden
9. Qatar
10. Netherlands
11. Canada
12. Norway
13. United States
14. Finland
15. Iceland
16. China
17. Saudi Arabia
18. Australia
19. Germany
20. Luxembourg
21. Lithuania
22. Bahrain
23. Malaysia
24. Belgium
25. Czech Republic
26. Austria
27. South Korea
28. Oman
29. United Kingdom
30. Thailand
31. New Zealand
32. France
33. Estonia
34. Kazakhstan
35. Japan
36. Kuwait
37. Portugal
38. Latvia
39. Spain
40. Indonesia
41. India
42. Chile
43. Italy
44. Cyprus
45. Puerto Rico
46. Slovenia
47. Jordan
48. Hungary
49. Romania
50. Greece
51. Philippines
52. Poland
53. Croatia
54. Colombia
55. Mexico
56. KENYA
57. Bulgaria
58. Brazil
59. Botswana
60. Peru
61. Ghana
62. Argentina
63. Slovak Republic
64. South Africa
65. Mongolia
66. Türkiye
67. Nigeria
68. Namibia
69. Venezuela
For more than thirty-five years, the IMD World Competitiveness Center has pioneered research on how countries and companies compete to lay the foundations for sustainable value creation.
The competitiveness of nations is probably one of the most significant developments in modern management and IMD is committed to leading the field. The World Competitiveness Center conducts its mission in cooperation with a network of 73 Partner Institutes in 60 countries
Switzerland, Singapore, and Hong Kong emerged as the world’s top three most competitive economies. The ranking, compiled by the IMD World Competitiveness Center, evaluates 69 countries using 164 indicators, including economic performance, government efficiency, business efficiency and infrastructure.
According to the report, Switzerland retained its position at the top, buoyed by unmatched government efficiency and strong infrastructure.
While its economic performance and business efficiency slipped slightly, the country remains one of the world’s most stable and resilient economies. However, Swiss executives flagged concerns over the openness of public-sector contract awards to foreign bidders.
Singapore, ranked second, dropped one place from last year due to declines in government and business efficiency. Still, it recorded the world’s best economic performance, driven by strong GDP growth, rising capital formation, and increased exports. Executives in Singapore cited business relocation as a major threat to the country’s economic future.
Hong Kong climbed two positions to third, boosted by gains in all four competitiveness pillars. The territory’s focused strategy to attract private investment continues to pay off, though executives increasingly view auditing and accounting standards as less adequately implemented.
The report highlights major regional shifts. Africa is showing promising momentum, with all six African countries in the index scoring above the global average in economic opportunities.
South Africa and Namibia ranked in the global top 10 for that category. However, the continent continues to struggle with high concern over education and healthcare.
Eastern Asia remains strong, though rising tariffs and geopolitical pressures are dampening gains for some economies. Western Europe leads in social cohesion metrics but faces rising identity-based polarisation.
The IMD survey also reveals that businesses globally are diversifying their supply chains to reduce overreliance on any single region. In Africa, regional integration under the African Continental Free Trade Area (AfCFTA) is showing early promise in strengthening intra-continental trade.
METHODOLOGY
The IMD World Competitiveness Ranking (WCR) evaluates 69 global economies using a blend of statistical data and executive perceptions to measure both quantitative and qualitative aspects of competitiveness.
The methodology, also used for IMD’s Digital Competitiveness and Talent rankings, assigns two-thirds of the final score to statistical indicators (“hard data”) sourced from international, national, regional, and private organizations. In 2025, hard data covered 170 criteria.
The remaining one-third comes from an online executive survey conducted between February and May 2025, with 6,162 respondents rating competitiveness factors on a scale of 1 to 6. These responses are converted to a 0–10 scale, standardized, and transformed into 92 survey-based criteria.
All 262 criteria are organised into four key factors—economic performance, government efficiency, business efficiency, and infrastructure—each containing five equally weighted sub-factors regardless of the number of indicators within them.
To ensure comparability across diverse metrics, the ranking uses the Standard Deviation (STD) method. Each economy’s score is calculated by comparing its performance to the average and standard deviation of all 69 economies. The standardised values are then aggregated to generate final, factor-level, and sub-factor rankings.
