Kiambu, Nakuru and Mombasa are Kenya’s most conducive counties for doing business due to a deeper financial system, wider market access and infrastructure as Isiolo, Lamu and Wajir rank lowest, a fresh index shows.
The 2026 County Development Index (CDI) ranks Kiambu and Nakuru joint first with scores of 0.181, followed by Mombasa at 0.166, Meru at 0.120 and Machakos at 0.108.
The index uses a scale of zero to one, with scores closer to one indicating stronger performance, while those closer to zero showing weaker performance.
The findings point to an investment map shaped by infrastructure, access to markets, financial services and industrial parks, leaving counties with weaker foundations struggling to compete for enterprises and jobs.
At the bottom, Isiolo scored 0.002, Lamu 0.003, Wajir 0.008, Garissa 0.010, West Pokot 0.012, exposing a deep schism in counties’ ability to attract private capital.
“Kiambu, Nakuru, Mombasa, Meru, Machakos and Kisumu recorded the strongest business environment scores, benefiting from better infrastructure, higher urbanisation, stronger market access and deeper financial systems,” reads the CDI.
“In contrast, Wajir, Garissa, Turkana, Samburu, Mandera and Tana River continue to experience limited private investment due to infrastructure deficits, geographic isolation, insecurity and relatively small formal markets.”
The findings mirror the economic dominance of a small group of counties that account for a substantial share of national output and jobs.
Kenya’s economic activity is heavily concentrated in a few counties, with Nairobi, Kiambu, Nakuru and Mombasa accounting for about 42.9 percent of the country’s GDP in 2024, says the Kenya National Bureau of Statistics (KNBS).
Nairobi alone contributed 27.4 percent, while Kiambu accounted for 5.5 percent, Nakuru 5.2 percent and Mombasa 4.8 percent, underscoring the weight carried by the country’s main urban and commercial centres.
A Business Daily analysis shows that Kenya’s 10 largest county economies host more than two-thirds of commercial bank branches, concentrating physical banking services in regions generating most of the country’s economic output.
The regions—Nairobi, Kiambu, Mombasa, Nakuru, Meru, Machakos, Uasin Gishu, Kisumu, Kilifi and Kakamega—accounted for 1,096 of Kenya’s 1,611 commercial bank branches at the end of December 2025.
The 10 counties had a combined Gross County Product (GCP) of Sh8.8 trillion in 2024, out of the Sh14.97 trillion generated across the country, according to the latest KNBS county economic estimates.
The fresh CDI findings show that reliable roads, electricity and digital connectivity influence attractiveness of counties to business.
Nairobi, Mombasa and Kiambu scored 1.00, 0.99 and 0.98 respectively on the infrastructure and connectivity index, according to CDI, while counties including Wajir, Turkana, Marsabit and Mandera recorded some of the weakest results.
For investors, infrastructure, financing and a wider market for goods and services inform the opening of factories and service centres , making location a key part of business.
The report places Mombasa, despite its relatively strong business environment, among counties with high youth unemployment, at 27 percent, indicating that a favourable investment climate alone does not guarantee enough jobs for locals.
Nationally, the World Bank has identified infrastructure gaps, governance challenges and a difficult business environment as obstacles holding back private investment, warning that these constraints raise costs and uncertainty for investors.
For counties outside the main investment centres, the CDI’s findings suggest that attracting businesses will require more than investment promotion campaigns, with reliable infrastructure, better logistics, access to finance and stronger links to markets forming part of the equation.
