The 2024 Kenya’s Gross County Product (GCP) report published by Kenya National Bureau of Statistics (KNBS), whose aim is to update the economic size of Counties has many lessons going forward. The report is a monetary measure of the net market value of all final goods and services produced within each of the 47 counties from 2019 to 2023. It is crucial for counties to assess their revenue potential, attract investment in sectors where they have competitive advantage, and monitor economic progress over time. Key lessons from the report; One, it highlights that there exist significant differences in county economy sizes, where for example Nairobi City contributed a notably large share of the total gross Value Added (GVA) of 27.5 per cent and Nominal GCP of Ksh. 802,344; Kiambu contributed 5.6 percent and GCP of Ksh. 760,820; Nakuru 5.2 percent and 334,667 and Mombasa contributed 4.8 percent and 507,337, all of which were above the National GDP average of 4.6 percent and Ksh. 293,229. However, a total of 33 counties contributed less than 2.0 per cent of the overall GVA and 10 counties contribute minimally to the national GDP, averaging below 0.6 percent each from 2019 to 2023. The review period saw 16 counties exceed the national GDP growth rate of 4.6 percent, namely Marsabit 9.3 percent; Tana River 7.6 percent; Nakuru 6.9 percent; Kajiado 6.3 percent and Nairobi City 6.1 percent.
Secondly, the report highlights sector contributions to county economies, where it was found that agriculture contributed 21.6 percent to national GDP over five years was best in Meru, Nakuru, Nyandarua, Murang’a, and Kiambu counties. Agriculture is our mainstay as a country and most of its aspects are devolved and hence counties must ensure that it pays to venture into it through strategic interventions. The other sector, significantly contributing to the county’s economies, is manufacturing where Nairobi City led with 36.9 percent of the GVA, followed by Mombasa 9.9 percent, Kiambu 8.4 percent and Machakos 7.8 percent. It shows that manufacturing is closely associated with urbanization and with the right incentives, it can do wonder for our economy. The services sector has made a notable contribution to the county’s economic development and production, with Nairobi City leading with 37.4 percent of GVA. Thirdly, the 2024 GCP Report is essential for guiding policymakers, investors, and researchers studying Kenya’s counties’ economies. Its detailed analysis of county-level economic performance aids evidence-based decision-making and national economic growth, which will be useful to accelerate the achievement of the Kenya Vision 2030 and other development aspirations. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti
Dr. Daniel Mutegi Giti 