Sharp Daily
No Result
View All Result
Wednesday, December 3, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

The economic promise and pitfalls of Kenya’s devolved governance

Hezron Mwangi by Hezron Mwangi
December 11, 2024
in Investments
Reading Time: 2 mins read

Kenya’s embrace of devolution, enshrined in the 2010 Constitution, delegating powers from the central government to local counties, marked a dramatic shift in governance, redistributing political and economic power from Nairobi to the 47 counties. This decentralization promised not only better service delivery but also the creation of localized investment opportunities. However, the extent to which devolution has fostered a conducive environment for investors remains a question of execution rather than design.

On paper, devolution offers immense potential. Counties now control critical sectors such as agriculture, healthcare, and infrastructure, which are ripe for investment. For instance, devolved governments have improved roads and energy access in previously underserved areas, opening them up to agro-processing and manufacturing ventures. Similarly, counties like Turkana and Kitui, rich in natural resources, have attracted mining and renewable energy projects like the lake Turkana wind power project due to localized policy-making.

However, devolution has not been a perfect solution. Challenges such as political wrangling, corruption, and inconsistent policies across counties create hurdles for investors. Some counties levy overlapping taxes, increasing the cost of doing business. Others lack the institutional capacity to manage partnerships with private investors effectively. These issues not only deter potential investors but also slow down the pace of economic transformation in many regions.

Despite these challenges, there are counties that stand out as success stories. Kiambu, for example, has become a hub for real estate and agribusiness, leveraging its proximity to Nairobi and a favorable business environment. Similarly, Makueni County’s innovative approach to public-private partnerships in health partnering with rebel group to improve the quality of healthcare in Kenya’s Makueni County showcases the transformative potential of devolution.

RELATEDPOSTS

Rural banking expansion: how financial literacy drives economic inclusion in Kenya

November 20, 2025

Employers face criminal charges over unpaid pension deductions.

November 19, 2025

For investors, the key lies in understanding the unique opportunities and challenges within each county. Assessing a county’s infrastructure development, governance standards, and sectoral priorities can provide crucial insights. Counties with clear development plans, such as Nakuru or Machakos, often present lower risks and higher returns for investments.

Ultimately, devolution offers a mixed bag for investors in Kenya. While it has unlocked opportunities in previously marginalized regions, inconsistencies and inefficiencies remain significant hurdles. For Kenya to fully realize the economic promise of devolution, county governments must prioritize accountability, transparency, and policy harmonization to attract and retain investment.

Previous Post

OPINION: Golden passports spur foreign investment but raise governance concerns

Next Post

OPINION: Why your worst investing enemy might be your own mind

Hezron Mwangi

Hezron Mwangi

Related Posts

Analysis

Safaricom launches ksh 15B green bond with 5B greenshoe

December 2, 2025
Analysis

Why Kenya doesn’t need a second bond exchange: the case against market fragmentation.

December 1, 2025
Analysis

Climate Finance in Africa: How Green Bonds Are Transforming Sustainable Investment.

November 28, 2025
Investments

Understanding the Cytonn court case and what the recent ruling means for investors

November 27, 2025
Analysis

Cytonn money market fund

November 24, 2025
Analysis

Growing Appeal of Alternative Investments in Africa

November 21, 2025

LATEST STORIES

Understanding load shedding in Kenya’s current energy landscape

December 2, 2025

Safaricom launches ksh 15B green bond with 5B greenshoe

December 2, 2025
Safaricom restores slashed data bundles after uproar.

Safaricom restores slashed mobile data bundles after customer backlash

December 2, 2025

Kenya’s middle-income jobs grow: 1.5 million now earn above Sh50,000 monthly

December 2, 2025

Safaricom restores slashed data bundles after customer uproar: technical Issue or pricing strategy?

December 2, 2025

The double edge of digital lending

December 2, 2025

Role of savings rate in strengthening Kenya’s economy

December 1, 2025

125 Kenyans hold more wealth than 42 million Kenyans

December 1, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024