A new cultivar of Hebe named ‘Celebration’, that is characterized by its compact, well-branched, rounded plant habit, its variegated foliage that is yellow-green in color with green at the center and very thin margins that are red-purple in color, its leaves that are narrowly elliptical to obelliptical in shape, its flowers that transition from dark to light red-purple in color, and its bloom season that commences in mid-May.