Kenya’s Trade Ministry Unveils Report Ranking Counties by Investment Potential

The Ministry of Investments, Trade and Industry (MITI) has released a new report identifying Kenya’s most and least attractive counties for investors. The County Competitiveness Index (CCI), funded by the European Union through TradeMark Africa, evaluates devolved units using indicators such as governance, infrastructure, business environment, healthcare, and education.

Top Investment Destinations

According to the findings, Nairobi emerged as the country’s top investment destination, followed by several high-performing counties. The table below summarises the rankings:

Rank County Competitiveness Score (%) Remarks
1 Nairobi 77 Strong infrastructure and skilled workforce
2 Kiambu 73 Proximity to capital and business-friendly
3 Nyeri 61 Stable governance and human capital growth
4 Murang’a 61 Emerging industrial potential
5 Nakuru 57 Expanding urban economy
6 Machakos 56 Good infrastructure, moderate growth
7 Mombasa 53 Strong port economy, but high competition
8 Kirinyaga 52 Promising agriculture and SME sector
9 Embu 51 Steady development progress
10 Tharaka Nithi 50 Moderate competitiveness

Bottom-ranking counties showed limited progress due to poor infrastructure, weak governance, and low economic activity:

County Competitiveness Score (%) Key Challenges
Wajir 13 Infrastructure and governance deficits
Tana River 14 Poor connectivity and human capital limitations
Garissa 15 Weak economic activity and insecurity concerns
Marsabit 16 Harsh terrain and limited public investment
Mandera 17 Border instability and poor infrastructure

The Ministry of Trade report attributes the strong performance of top-tier counties to robust infrastructure, skilled labour, and stable governance structures. Nairobi Governor Johnson Sakaja hailed the ranking as a reflection of the capital’s dynamic economy and investor confidence.

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To improve competitiveness, the report recommends that counties strengthen institutional capacity, invest in infrastructure and human capital, enhance business efficiency, and implement sustainability and climate resilience strategies.

It also notes that high-ranking counties benefit from solid public security, higher gross county product (GCP), and a greater government presence, while low-ranking regions struggle with deficiencies in healthcare, education, and governance.