Only 30 of the 47 counties in Kenya have attracted at least one major investment since the dawn of devolution, highlighting the low competitiveness of the devolved units.
A study by the Kenya Investment Authority has revealed that some 17 counties have never received any investment transaction in the 12 years of devolution, while others near the capital have seen multiple major investments.
The full report is yet to be published, and the specific counties without investments haven't been revealed.
This revelation comes as the inaugural County Competitiveness Index (CCI) published by the Ministry of Investments, Trade and Industry (MITI) shows that several counties have a low level of competitiveness and are struggling to attract investors.
“Of all the 47 counties that we have, the pipeline of deals we have is currently covering only 30, which would mean that a few of the counties do not have active transactions,” John Mwendwa, the CEO of the Kenya Investment Authority, said during the launch of the CCI report.
“The reason this [CCI report] is important is that it is good for investment spread to be inclusive, so that in the North, South, West, and East, there is good coverage.”
The CCI measures the competitiveness of each county or their success in creating an enabling business environment to foster economic growth and attract investments at the sub-national level.
To assess competitiveness, the index analyses metrics such as the presence of the State, public security, size and growth rate of the local county economies, employment levels per county, infrastructure quality and availability, levels of education, general business climate, and environmental quality and management, among others.
Nairobi emerged as the most competitive, with a competitiveness rate of 73 percent, followed by Kiambu at 71percent, Nyeri (61 percent), Murang’a (61 percent), Nakuru (57 percent), Machakos (56 percent), and Mombasa with 53 percent.
Others above the desirable threshold of 50 percent are Kirinyaga (52 percent), Embu (51 percent), and Tharaka Nithi (50 percent).
According to the study, the devolved units in this category showcase strong performance in key areas such as economic development, infrastructure, and governance.
The least competitive counties, according to the analysis, are Wajir (13 percent), Tana River (14 percent), Garissa (15 percent), Marsabit (16 percent), and Mandera (17 percent). These face “persistent challenges in infrastructure, human capital, and economic activity,” the research says.
All other counties scored a competitiveness rate of between 20 percent and 50 percent.
MITI Cabinet Secretary Lee Kinyanjui said the findings of the study will help inform investors seeking opportunities across the country, as well as inform local governments on how their attractiveness can be improved.
“We believe that for any investor who is in the country, the transition from prospecting to becoming an actual investor depends on the information given. If there’s an information gap, then they may not be able to make full decisions,” said Mr Kinyanjui.
