Kenya

Kenya demonstrates how infrastructure gaps can become innovation opportunities—skipping development stages entirely through technological leapfrogging. When M-Pesa launched in 2007, Kenya lacked banking infrastructure for most citizens. Rather than build branches, Safaricom built a mobile payment network that now serves 50 million active users across seven African countries. Financial inclusion jumped to 75%. Nairobi earned the name 'Silicon Savannah,' and Kenya became Africa's fintech proving ground.

This technological layer sits atop an agricultural base. Farming contributes 25% of GDP and employs over 40% of the workforce. Tea and coffee drive export earnings; cut flowers make Kenya one of the world's top exporters. The 2025 economy showed 5.0% Q2 growth, with agriculture gaining 6.0% thanks to favorable rains. But the dual structure creates vulnerability: when rains fail, both rural livelihoods and national output suffer.

Kenya functions as East Africa's economic keystone. With GDP of $95 billion—the largest in the region—Nairobi hosts regional headquarters for international organizations and multinational corporations. Tourism generates over $2 billion annually from 1.75 million international arrivals, many drawn to wildlife safaris that make Kenya synonymous with African nature. The combination of financial services, technology, tourism, and agricultural exports creates a diversified economy unusual for the continent.

Challenges persist at scale. Debt-to-GDP exceeds 66%, above the 55% sustainability threshold. The World Bank assesses Kenya at high risk of debt distress. Regulatory scrutiny of digital payment platforms and non-performing loans create financial sector risks. Yet the M-Pesa model—solving problems with technology rather than traditional infrastructure—continues spreading through the economy.