Governors during the Biennial Devolution Conference at Eldoret Sports Club in Uasin Gishu County on August 17, 2023.
Nairobi, Kiambu, Nyeri, and Murang’a counties are Kenya’s best counties to invest in, a new study commissioned by the Ministry of Investments, Trade, and Industry (MITI) has revealed.
The first ever County Competitiveness Index (CCI) report, financed by the European Union through Trademark Africa, reveals which devolved units in the country are most attractive to investors based on a number of factors including infrastructure and healthcare quality.
Using a combination of surveys and government data, the index analyses metrics such as presence of the State, public security, size and growth rate of the local county economies, employment levels per county, infrastructure quality and availability, levels of education, general business climate, and environmental quality and management, among others.
The index is an aggregate percentage score showing counties’ competitiveness, that is, their success in creating an enabling business environment to foster economic growth and attract investments at the sub-national level.
Nairobi emerged as the most competitive county, with a competitiveness rate of 71 per cent, followed by Kiambu at 73 per cent, Nyeri (61 per cent), Murang’a (61 per cent), Nakuru (57 per cent), Machakos (56 per cent), and Mombasa with 53 per cent.
President William Ruto, Governor Gladys Wanga, (left) Council of Governors Chair Ahmed Abdullahi (left), Vice Chair Mutahi Kahiga (2nd right), Senate Speaker Amason Kingi (2nd left), Governor Joshua Sang (extreme left) and PS Devolution Michael Lenasalon (extreme right) unveil the Council of Governors (COG) Devolution Institute Manual during the opening of the Devolution Conference, 2025 at Homabay National School, Homabay County
Other counties above the desirable threshold of 50 per cent are Kirinyaga (52 per cent), Embu (51 per cent), and Tharaka Nithi (50 per cent).
According to the study, the devolved units in this category showcase strong performance in key areas such as economic development, infrastructure, and governance.
The least competitive counties, according to the analysis, are Wajir (13 per cent), Tana River (14 per cent), Garissa (15 per cent), Marsabit (16 per cent), and Mandera (17 per cent).
"These counties face persistent challenges in infrastructure, human capital, and economic activity,” the research says.
All other counties scored a competitiveness rate of between 20 percent and 50 percent.
MITI Cabinet Secretary Lee Kinyanjui said the findings of the study will help inform investors seeking opportunities across the country, as well as inform local governments on how their attractiveness can be improved.
“We believe that for any investor who is in the country, the transition from prospecting to becoming an actual investor depends on the information given. If there’s an information gap, then they may not be able to make full decisions,” said Mr Kinyanjui.
Governors during the Biennial Devolution Conference at Eldoret Sports Club in Uasin Gishu County on August 17, 2023.
The study comes ahead of the publishing of another research done by the Kenya Investment Authority, which is expected to reveal some 17 counties that have never recorded any major investments since the dawn of devolution 12 years ago.
The inaugural CCI report has recommended that counties strengthen governance and institutional capacity, expand infrastructure and regional connectivity, and invest in human capital development to boost their competitiveness.
It also recommends far-reaching reforms to enhance business efficiency, implementation of climate resilience and sustainability strategies, and targeted development by the national government in low-performing counties.
The study found that high-scoring counties generally have strong institutions, public security and heavy State presence, high gross county product (GCP) and economic growth rates, as well as highly developed infrastructure.
“This indicates that a strong institutional framework, robust economic activities, and well-developed infrastructure are central to high competitiveness,” said the study.
Counties with the lowest competitiveness rate, like Wajir, Tana River, Mandera, and Garissa, on the contrary, exhibit severe shortfalls in education, health, infrastructure, and governance.
“The least competitive counties should prioritize basic infrastructure investments in water, education, and healthcare to close foundational development gaps,” the study recommends.
