Kenya’s investment landscape continues to evolve as counties compete to attract capital, improve governance, and expand economic opportunities. The launch of the County Competitiveness Index (CCI) by the Department of Business Reforms and Transformation, in partnership with TradeMark Africa, marks a major step toward evaluating how effectively counties support business growth. The index offers a clear picture of regional strengths and weaknesses, helping investors identify prime destinations for expansion.
The CCI assesses counties using indicators such as institutional capacity, infrastructure, economic development, human capital, business environment, and climate resilience. Data used for the ranking combines primary findings collected in 2024 and secondary data from 2020 to 2024. Equal weighting ensures that counties are compared fairly across all domains.
Kenya’s County Competitiveness Performance
The 2024 CCI findings show wide disparities across regions. Nairobi, Kiambu, Murang’a, and Nyeri emerged as the strongest performers, driven by established infrastructure, skilled workforces, and environments that encourage business growth. These counties continue to attract both domestic and international investors due to superior service delivery, functional markets, and expanded economic opportunities.
Counties such as Nakuru, Machakos, Embu, and Kirinyaga ranked moderately competitive, showing progress but still requiring targeted upgrades to unlock their full economic potential.
At the lower end of the ranking, counties including Wajir, Tana River, and Garissa face challenges such as weak infrastructure, governance gaps, and limited investment readiness. These issues continue to hinder their ability to attract significant private sector activity.
Top 10 Most Attractive Counties for Business and Investment (CCI Ranking)
- Nairobi – 77%
- Kiambu – 73%
- Nyeri – 61%
- Murang’a – 61%
- Nakuru – 57%
- Machakos – 56%
- Mombasa – 53%
- Kirinyaga – 52%
- Embu – 51%
- Tharaka Nithi – 50%
These counties stood out for their economic vibrancy, administrative efficiency, digital adoption, and progress in developing investor-friendly regulatory structures.
Challenges in Low-Ranking Counties
Counties at the bottom of the index share similar challenges. Limited infrastructure, insufficient human capital development, and governance inefficiencies reduce their ability to attract investment. The CCI recommends that these regions adopt targeted strategies, including modernizing service delivery, investing in transport and digital infrastructure, improving education and healthcare outcomes, and implementing climate-resilient economic activities.
The index further emphasizes the need for simplified business regulations that encourage entrepreneurship rather than constrain it. Tailored interventions for each low-performing county would also help address structural challenges and promote regionally balanced development.
County Revenue Performance
County governments collected KSh 67.30 billion in own-source revenue in FY 2024/25, representing 77% of the targeted KSh 87.67 billion. While some counties underperformed, others exceeded expectations through better revenue strategies, automation, and improved compliance.
Top revenue performers included:
- Kisii – 178%
- Tana River – 133%
- Mandera – 123%
- Wajir – 123%
Poor performers included:
- Nairobi – 66%
- Kakamega – 65%
- Kisumu – 65%
- Bungoma – 65%
- Siaya – 47%
These mixed results highlight the need for improved financial planning and revenue diversification strategies at the county level.
