In Kenya, a substantial portion of the nation’s economy is bolstered by vital industries, including manufacturing, services, construction, mining, and electricity.
Nevertheless, a notable disparity exists, with the majority of the country’s counties making minimal contributions to these sectors. According to a recent 2023 Gross County Product (GCP) report, only nine counties significantly impact the national economy.
The 2023 GCP report emphasizes that a mere fraction of Kenya’s counties are driving the manufacturing, services, construction, mining, and electricity sectors. In a nation with 47 counties, a more equitable distribution of economic activities might be anticipated. However, in reality, the majority of counties receive meager economic benefits, while only a handful make substantial contributions to Kenya’s GDP.
Within the manufacturing sector, the disparities are particularly evident. Over the five-year period from 2018 to 2022, just five counties controlled more than two-thirds of this sector. Nairobi City County led the way, contributing an astounding 36.9 percent of the total manufacturing Gross Value Added (GVA) during that period.
Other noteworthy contributors included Mombasa, Kiambu, and Machakos, contributing 9.6, 8.4, and 7.8 percent, respectively. These counties owe much of their success to the presence of Export Processing Zones, which have fueled their relatively high contributions to the manufacturing sector. Nevertheless, this concentration leaves many other counties with limited access to manufacturing opportunities and the associated economic benefits.
Similar trends are observed in the services sector, encompassing various economic activities outside of agriculture, industry, and construction. Nairobi once again leads the way, contributing an average of 37.3 percent to this sector since 2018. Mombasa, Kiambu, Nakuru, Kisumu, Uasin Gishu, Machakos, and Meru also make significant contributions.
This uneven distribution is not exclusive to manufacturing and services. The report highlights that just nine counties have, on average, contributed more than their equitable share to sectors like mining and quarrying, electricity, gas, steam, air conditioning, water supply, sewerage, waste management, and construction. These counties have managed to secure a substantial portion of the benefits from these sectors, leaving many counties with minimal gains.
In contrast, Kenya’s agriculture sector stands out for its balanced distribution across the country. Over half of Kenya’s counties (24 out of 47) contribute more than the national average rate to the sector’s productivity.
This signifies that agricultural activities are spread across the nation in a balanced manner, unlike the other sectors concentrated in a few key counties. It’s important to note that agriculture contributes around 21 percent of Kenya’s GDP.
The findings of the 2023 GCP report underscore the pressing need for a more equitable distribution of economic opportunities and resources across Kenya’s counties. While some counties flourish in sectors like manufacturing and services, others grapple to make meaningful contributions to the national economy. It is imperative that the government and relevant stakeholders take action to promote economic diversification and equitable development.
Such measures may include policies that encourage investment in underdeveloped regions, improve infrastructure, and promote entrepreneurship. These actions would not only benefit the neglected counties but also contribute to a more sustainable, balanced, and inclusive economic growth for Kenya as a whole.
