Sharp Daily
No Result
View All Result
Friday, January 23, 2026
  • 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

Budget cuts weaken Kenya’s fight against money laundering

January 19, 2026

Minority EABL investors lose Sh12 billion in paper gains after share price pullback

January 15, 2026

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

Investments

Strategic ownership shifts are reshaping the NSE Equity landscape

January 22, 2026
The up arrow shows the inflation rate. Interest rates increase, home loan, mortgage, house tax. investment and asset management concept. percentage for increasing interest rates with stacks coins
Investments

Understanding Private Equity (P.E) in Kenya

January 21, 2026
Analysis

Kenyan investors allocated 60 percent of KPC shares in landmark IPO

January 20, 2026
Analysis

Kenyan investors can buy up to 60% of 11.8 billion KPC shares at Sh9 each

January 20, 2026
Investments

Mobile Money Meets the Stock Market

January 16, 2026
Analysis

Self-Insurance by Another Name: The Rise of Investment Based Risk Management

January 9, 2026

LATEST STORIES

Strategic ownership shifts are reshaping the NSE Equity landscape

January 22, 2026

How targeted training is reshaping Kenya’s workforce readiness

January 22, 2026

Nedbank targets NCBA in landmark $856 million acquisition

January 22, 2026

FSD Africa to launch Kenya SME Debt Fund to expand access to business financing

January 22, 2026

Worldcoin deletes all data collected from Kenyans in 2023 after High Court order

January 22, 2026

How Banking Has Quietly Become Part of Everyday Life in Kenya

January 21, 2026

Safaricom to roll out tokenised wi-fi with hourly and daily plans

January 21, 2026
The up arrow shows the inflation rate. Interest rates increase, home loan, mortgage, house tax. investment and asset management concept. percentage for increasing interest rates with stacks coins

Understanding Private Equity (P.E) in Kenya

January 21, 2026
  • 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