A Parliamentary Budget Office report reveals that five counties contribute nearly half of Kenya's Gross Domestic Product, while 16 others each add less than 1%. These economic disparities highlight significant gaps between developed and challenged regions. The findings shed light on fiscal devolution trends for 2025.
A recent Parliamentary Budget Office (PBO) report outlines stark economic disparities among Kenya's counties. The top five—Nairobi (29.5%), Kiambu (5.6%), Nakuru (5.2%), Mombasa (5.2%), and Machakos (3.4%)—account for 49% of the national Gross Domestic Product. This stems from their status as commercial hubs with diverse economic activities.
In contrast, the 16 mentioned counties together contribute just 7.5%. These include Isiolo (0.3%), Samburu (0.3%), Tana River (0.3%), Lamu (0.3%), Wajir (0.5%), Mandera (0.5%), Garissa (0.6%), Tharaka Nithi (0.6%), Marsabit (0.6%), Taita Taveta (0.6%), West Pokot (0.7%), Baringo (0.7%), Vihiga (0.7%), Busia (0.8%), Laikipia (0.9%), and Elgeyo Marakwet (0.9%). The report states: “Many of these counties are marginalized areas facing challenges like drought, poor infrastructure, and low economic investment.”
Nineteen other counties each contribute over 1%, such as Meru (3%), Kisumu (2.5%), and Uasin Gishu (2.4%). In manufacturing, counties like Bomet (24.6% growth) and Vihiga (25.7%) show rapid expansion, driven by agro-processing and small-scale industries. The report highlights potential for growth in western areas like Mandera and Garissa if investments increase in sectors such as livestock and construction.
These findings underscore the need for policies to address such gaps and promote balanced national development.