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Kiambu, move over, there’s new economic heavyweight in town

Kiambu, move over, there’s new economic heavyweight in town
The safari before Safari Rally in ‘Vasha’. From the heart-pounding thrill of the World Rally Championship to the tranquil beauty of Lake Naivasha’s resorts, the region has become a magnet for adrenaline junkies and leisure seekers alike. PHOTO/PRINT

Nakuru County has officially leapfrogged Kiambu to become Kenya’s second-largest economy, shaking up the rankings in the latest 2024 Gross County Product (GCP) report.

The GCP, which essentially dissects the national GDP across all 47 counties, shows that Nakuru is not just keeping pace but sprinting ahead.

According to data from the Kenya National Bureau of Statistics (KNBS), Nakuru’s economy surged to Sh785.75 billion in 2023, now contributing 5.7 per cent to Kenya’s overall GCP—an impressive jump from 4.9 per cent in 2019.

Meanwhile, Kiambu clocked in at Sh760.82 billion, slipping slightly from 5.7 per cent to 5.6 per cent over the same period. During that period, the national GCP across all 47 counties increased from Sh12.4 trillion to Sh13.9 trillion.

For years, Kiambu has comfortably held its spot as the economic powerhouse outside of Nairobi, but Nakuru’s rapid growth signals that the old order might be changing. The county is riding high on a wave of industrial expansion, infrastructural development, and a booming business environment that continues to attract investors.

That said, Kiambu still holds a razor-thin lead in one key metric: at constant 2016 prices, it stands at Sh529.29 billion, just edging out Nakuru’s Sh509.52 billion. But if Nakuru’s current trajectory is anything to go by, that gap might not last much longer.

“The constant price estimates are used to derive economic growth by county. In the absence of county-specific deflators, implicit deflators for the value- added at the national level were applied to derive constant price estimates at the county level. This approach assumes that price changes are relatively uniform across counties, even though there may be variations in some cases,” says Macdonald Obudho Director General Kenya National Bureau of Statistics.

Nakuru has mastered the art of growth, transforming itself into a dynamic economic powerhouse through strategic investments in agriculture, tourism, and infrastructure. And if you’re looking for the hottest economic playground outside Nairobi, Naivasha is where the magic happens.

Hospitality businesses

From the heart-pounding thrill of the World Rally Championship to the tranquil beauty of Lake Naivasha’s resorts, the region has become a magnet for adrenaline junkies and leisure seekers alike. Hospitality businesses are cashing in, with high-end lodges, boutique hotels, and Airbnb properties witnessing an unprecedented boom. The ripple effect? More jobs, more money in circulation, and a tourism industry that refuses to slow down.

Nakuru has got its hands deep in the soil, too. The county remains an agricultural juggernaut, supplying everything from fresh vegetables to high-value floriculture exports. With a strategic push toward agribusiness, large-scale farming, and agro-processing, Nakuru is ensuring its economic engine stays well-oiled.

Nothing fuels economic expansion like roads, rail, and energy. With major projects like the Standard Gauge Railway (SGR) freight services to Naivasha, improved road networks, and ambitious industrial park developments, Nakuru has built a business-friendly ecosystem that keeps investors coming back for more.

On the other hand, Kiambu’s slight dip highlights the challenges of maintaining economic dominance in an increasingly competitive environment.

While it remains a major contributor to Kenya’s gross domestic product (GDP), experts suggest that Kiambu must embrace diversification and innovation to sustain its economic strength.

The county’s reliance on traditional agriculture and urban commercial activities may require modernisation and expansion into high-growth sectors like industrialization and technology to regain its competitive edge.

The GCP report also ranked the top five counties by GDP, with Nairobi leading as the largest contributor to Kenya’s economy. Nakuru and Kiambu followed in second and third positions, respectively, while Mombasa and Machakos rounded out the top five. Mombasa, however, recorded the largest drop, with its GCP share falling from 5.0 per cent to 4.8 per cent over five years, signalling a potential stagnation in its economic activities.

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