Kenya has intensified its efforts to strengthen regional competitiveness and expand investment opportunities across the country. A major milestone in this journey is the introduction of the County Competitiveness Index (CCI)—a comprehensive tool designed to evaluate counties based on their economic performance, governance quality, and attractiveness to investors. The index provides a clearer understanding of where business opportunities are strongest and where targeted improvements are needed.
The competitiveness assessment measured counties using key indicators such as institutions, infrastructure, human capital, economic development, business environment, and climate resilience. Data was drawn from recent primary research and verified secondary sources to create an accurate picture of county-level performance.
Counties that excelled in the index demonstrated strong infrastructure, professional labor markets, stable governance, and environments that support enterprise growth. On the other hand, low-ranked counties performed poorly due to infrastructure gaps, governance challenges, and limited human capital development.
What Is the County Competitiveness Index?
The County Competitiveness Index is a national ranking system developed to measure how each county performs across important economic and governance metrics. It enables policymakers, investors, and the public to identify counties with strong investment potential as well as those requiring support to unlock economic growth. It also guides counties in designing targeted interventions that foster job creation, improve service delivery, and strengthen business environments.
The CCI evaluates counties based on:
- Infrastructure development
- Quality of public institutions
- Human capital and workforce skills
- Business climate and regulatory efficiency
- Economic dynamism
- Environmental and climate resilience
County Competitiveness Performance
The 2024/2025 findings highlighted major regional disparities in competitiveness. Counties in central and urban regions performed strongly, driven by well-developed infrastructure, skilled labor, and supportive regulatory environments. These counties continue to attract investment across finance, real estate, manufacturing, and technology sectors.
Counties in arid and semi-arid regions scored lower, affected by insufficient infrastructure, limited human capital development, and governance challenges. These weaknesses significantly reduce their ability to draw private investment or sustain a vibrant business ecosystem.
Top 10 Most Attractive Counties for Business and Investment in Kenya
According to the latest CCI assessment, the following counties ranked highest:
- Nairobi – 77%
- Kiambu – 73%
- Nyeri – 61%
- Murang’a – 61%
- Nakuru – 57%
- Machakos – 56%
- Mombasa – 53%
- Kirinyaga – 52%
- Embu – 51%
- Tharaka Nithi – 50%
These counties remain leaders in investment attraction due to strong transport networks, digital infrastructure, governance efficiency, and ongoing efforts to support enterprise growth.
Counties Facing Competitiveness Challenges
At the lower end of the rankings were Wajir, Tana River, and Garissa, which continue to struggle with:
- Underdeveloped infrastructure
- Inadequate skilled workforce
- Weak governance systems
- Limited economic diversification
These structural challenges limit their ability to leverage national and regional investment opportunities.
Key Recommendations from the Competitiveness Report
To support balanced regional development, the report outlined several recommendations:
- Strengthen governance and improve service delivery
- Invest in transport, digital, and energy infrastructure
- Expand access to healthcare and education to build human capital
- Simplify business regulations to reduce barriers for investors
- Promote climate-resilient strategies to safeguard economic growth
- Target low-performing counties with tailored interventions
These reforms aim to encourage investment in all regions, reduce disparities, and enhance county-level economic competitiveness.
County Revenue Performance in 2024/25
The Controller of Budget reported that counties collected KSh 67.30 billion in own-source revenue, achieving 77% of their KSh 87.67 billion target. Despite missing the target, several counties exceeded expectations through enhanced revenue automation and diversified income streams.
Top revenue performers included:
- Kisii – 178%
- Tana River – 133%
- Mandera – 123%
- Wajir – 123%
Counties that underperformed included:
- Nairobi – 66%
- Kakamega – 65%
- Kisumu – 65%
- Bungoma – 65%
- Siaya – 47%
The revenue trends highlight the importance of improving county financial management and expanding local revenue sources to sustain economic growth.
