The five counties that hold nearly half of Kenya’s wealth

By Newsflash Writer

Five counties account for almost half of Kenya’s total economic output, underscoring deep regional disparities in wealth creation, according to the latest Devolution Budget Watch report by the Parliamentary Budget Office (PBO).

The report shows that just five counties—Nairobi, Kiambu, Nakuru, Mombasa and Machakos—contribute a combined 49 per cent of the country’s Gross Domestic Product (GDP), while 16 counties each account for less than one per cent of national output. GDP is widely used as a measure of the size and overall health of an economy.

Nairobi dominates Kenya’s economy, contributing 29.5 per cent of GDP on its own. It is followed by Kiambu at 5.6 per cent, Nakuru and Mombasa at 5.2 per cent each, and Machakos at 3.4 per cent. According to the PBO, the strong performance of these counties is linked to their peri-urban character, diversified economies and concentration of services, manufacturing, trade and infrastructure.

The counties that anchor Kenya’s economy

Beyond the top five, the report identifies a second tier of counties whose economies contribute more than one per cent each to national GDP, reflecting relatively broad-based growth.

Meru contributes three per cent, while Kisumu accounts for 2.5 per cent and Uasin Gishu 2.4 per cent. Kilifi and Kakamega each contribute 2.1 per cent, followed by Murang’a, Bungoma and Nyeri at 1.9 per cent each. Kisii stands at 1.8 per cent, while Narok, Kericho and Kajiado contribute 1.6 per cent apiece.

Nandi, Bomet and Trans Nzoia each account for 1.5 per cent, with Embu at 1.4 per cent. Several counties—including Kwale, Migori, Kirinyaga, Kitui, Homa Bay, Nyandarua and Makueni—each contribute between 1.1 and 1.2 per cent. Nyamira, Turkana and Siaya are at about one per cent each.

However, the report paints a stark picture at the lower end of the scale. Sixteen counties collectively contribute only 7.5 per cent to Kenya’s GDP, with each accounting for less than one per cent individually. These include Isiolo, Samburu, Tana River and Lamu at 0.3 per cent each; Wajir and Mandera at 0.5 per cent; and Garissa, Tharaka Nithi, Marsabit and Taita Taveta at about 0.6 per cent. West Pokot and Baringo stand at 0.7 per cent, Vihiga at 0.7 per cent, Busia at 0.8 per cent, and Laikipia and Elgeyo Marakwet at 0.9 per cent.

The PBO notes that many of these regions face persistent challenges, including drought, weak infrastructure, insecurity and limited private investment.

Manufacturing growth and emerging frontiers

Despite the imbalance, the report highlights encouraging trends in county-level manufacturing. Bomet, Vihiga, Nandi, Machakos and West Pokot emerged as the fastest-growing manufacturing counties, posting growth rates of between 14.8 and 25.7 per cent. This performance is attributed largely to small-scale agro-processing and the revival of cottage industries supporting local value chains.

Counties such as Busia, Laikipia, Meru and Tana River recorded steady manufacturing growth averaging between eight and 12 per cent, supported by improved infrastructure, better market access and rising private-sector investment.

Meanwhile, Nairobi, Kisumu, Nakuru and Mombasa continue to anchor national manufacturing output. In 2023, Nairobi posted an 8.2 per cent manufacturing growth rate, while Mombasa recorded 14.8 per cent, reflecting renewed investor confidence.

The report also notes gradual gains in traditionally marginalised counties. Mandera, Marsabit and Garissa recorded manufacturing growth of 10.6 per cent, 9.2 per cent and 2.8 per cent respectively, driven largely by livestock-based industries and construction materials.

Overall, the Devolution Budget Watch 2025 underscores the growing role of county governments in driving Kenya’s economic performance, while warning that persistent inequality in regional development calls for more equitable resource allocation, sustained investment and stronger fiscal accountability at the devolved level.