Felix Koskei outlines 5 pillars for Kenya’s leap to first-world economy
By Faith Lagat, December 22, 2025Kenya’s Chief of Staff and Head of the Public Service, Felix Koskei, has detailed a roadmap for transforming the country into a developed “First World” economy.
In a post on X dated December 22, 2025, Koskei emphasised that “to transition from its current status as a developing nation to a ‘First World’ (developed) economy, Kenya requires a profound structural transformation.”
He further stressed that “the path to the ‘First World’ is not just about wealth but about productivity. Kenya must transform from an economy that consumes finished goods and exports raw materials to one that creates high-value products and services.”
Koskei highlighted the evident impact of the government’s Bottom-Up Economic Transformation Agenda (BETA) plan in pursuing this goal.
Industrialization and export diversification
Koskei identified industrialisation and export diversification as critical for Kenya’s leap to a developed economy. He noted that Kenya relies heavily on agricultural exports such as tea, coffee, and flowers.
“To reach developed status, it must move up the value chain,” he said. This includes a manufacturing leap by increasing manufacturing’s share, which requires lowering electricity costs and improving logistics. Agro-processing is key: “Instead of exporting raw materials, Kenya must process them locally (e.g., roasted coffee instead of beans) to retain higher profit margins.”
Koskei also highlighted leveraging the Silicon Savannah to position Kenya’s ICT sector as a global hub for software development and digital services.
Governance, education and human capital
Koskei stressed the importance of governance, institutional integrity, and human capital development. Addressing corruption is essential as “high levels of public fund leakage undermine investor confidence and divert resources from essential infrastructure.”
Strengthening the rule of law through “consistent enforcement of contracts and protection of property rights” is necessary to attract long-term Foreign Direct Investment (FDI).
On education, he said, “A First World economy requires a workforce capable of high-tech and high-efficiency output,” advocating a STEM focus, enhanced Technical & Vocational Training (TVET), and “innovation funding: increasing R&D spending from the current ~0.8% of GDP toward the global developed average of 2–3%.”
Macroeconomic stability, infrastructure and energy
Koskei highlighted macroeconomic stability, debt management, infrastructure, and energy as essential pillars. Kenya needs “heightened management of public debt and fiscal pressure,” including “debt sustainability: moving away from expensive commercial loans toward sustainable financing to prevent ‘debt distress’ that chokes off growth,” and “tax base expansion: increasing domestic revenue mobilization fairly without stifling the private sector or the ‘hustler’ (informal) economy.”
On infrastructure and energy, he called for “reliable power: transitioning to 100% green, affordable energy (geothermal, wind, solar) to power heavy industry,” and “regional integration: utilising the East African Community (EAC) to create a massive single market, allowing Kenyan firms to scale beyond national borders.”
Koskei concluded, noting that with the focus the government has put on these critical factors, there is no doubt that Kenya is marching forward to the first world.
He urged unity, saying, Kenyans must resolve on one accord to leave behind politico-ethnic differences, have their minds meet for the country to take the shortest time possible to reach First World status.