Sharp Daily
No Result
View All Result
Sunday, February 22, 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

Proposed Two-Pot pension system aims to balance flexibility and retirement security

February 17, 2026
Investments

State races to raise Sh106.3 billion from Kenya Pipeline Company IPO as uptake slows

February 16, 2026
Analysis

CBK 10th rate cut: A simple breakdown for everyday kenyans

February 13, 2026
Analysis

NSSF early pension access proposal

February 13, 2026
Analysis

Pension funds with higher risk exposure outperform peers in 2025

February 11, 2026
Analysis

Safaricom ziidi trader, bringing stock market investing to m-pesa

February 10, 2026

LATEST STORIES

Kenya Raises USD 2.3 Bn Eurobond to Extend Debt Maturity and Ease Refinancing Pressure

February 20, 2026

Ways regulators could promote fair competition in the age of Artificial Intelligence

February 20, 2026

Scent of distinction: Inside Kenya’s exploding perfume obsession

February 20, 2026

Why the NSSF Act of 2013 is a Transformative Milestone for Retirement Security in Kenya

February 20, 2026

Kenya’s imports growth outpaces exports growth again in 2025.

February 20, 2026

Varun Beverages plans major Kenya beverage plant by 2027 to expand soft drink production

February 20, 2026

Unclaimed assets in Kenya surpass sh100 billion as recovery efforts lag

February 20, 2026

Shiriki Pay: A new chapter in Kenya’s mobile money story

February 19, 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