The Kenya National Bureau of Statistics (KNBS) released the 2024 Gross County Product (GCP) Report, providing a comprehensive analysis of economic activity across Kenya’s 47 counties.
The report offers a crucial perspective on the size and structure of each county’s economy, quantifying their contribution to the nation’s Gross Domestic Product (GDP).
GCP serves as a monetary measure of the net market value of all final goods and services produced within a given county, offering valuable insights into regional economic disparities and development trends.
The report sheds light on the significant variations in economic output across the country.
Nairobi City emerged as the undisputed economic powerhouse, contributing a substantial 27.5% to the national GDP. Following closely are Kiambu (5.6%), Nakuru (5.2%), and Mombasa (4.8%), highlighting the concentration of economic activity in certain regions.
“There are significant disparities in the size of county economies,” said KNBS.
Key Findings from the 2024 Gross County Product (GCP) Report
Uneven Economic Growth
16 counties outpaced the national average GDP growth of 4.6% (2019-2023), indicating significant regional disparities.
Leading performers: Marsabit (9.3%), Tana River (7.6%), Nakuru (6.9%), Kajiado (6.3%), and Nairobi City (6.1%). These figures suggest robust economic activity in these regions, driven by factors such as resource extraction, tourism, and urban development.
Lagging regions: Five counties recorded growth below 3.0%, with three experiencing less than 2.0%. This highlights the challenges faced by these areas, potentially linked to limited access to resources, infrastructure, and market opportunities.
Economic Disparities Reflected in Per Capita Output
Nine counties surpassed the national GDP per capita of KSh 293,229 in 2023.
- Nairobi City (KSh 802,344) significantly outperformed other counties, reflecting its status as the economic and financial hub of the nation.
- Other high-performing counties: Mombasa, Nakuru, Nyeri, and Lamu benefit from diversified economies with strong contributions from tourism, trade, and resource extraction.
Sectoral Performance
- Agriculture: Meru, Nakuru, Nyandarua, Murang’a, and Kiambu demonstrated strong agricultural performance, likely driven by diverse crop production (tea, coffee, maize, vegetables).
- Manufacturing: Nairobi City dominated (36.9%), followed by Mombasa, Kiambu, and Machakos. This concentration of manufacturing activity in specific regions underscores the need for regional development strategies to encourage industrial growth in other parts of the country.
- Services: Nairobi City maintained its dominance in the service sector, accounting for 37.4% of total services’ GVA. This highlights the importance of the service sector in driving economic growth in the capital.
Workforce Distribution
- National Workforce: Nearly 20 million individuals, with a slight male majority.
- Regional Variations: High Workforce Concentration: Nairobi City, Kiambu, and Nakuru (major urban and economic centers).
- Low Workforce Concentration: Lamu, Isiolo, and Samburu (likely due to smaller populations and limited economic opportunities).
- Gender Disparities: Significant variations across counties, with some exhibiting more pronounced male dominance in employment.
Key Observations
The 2024 GCP Report underscores significant regional disparities in economic growth and development across Kenya.
Addressing these disparities requires a multi-pronged approach, including:
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- Investing in infrastructure: Improving transportation, energy, and communication networks in underserved regions.
- Promoting inclusive growth: Supporting small and medium-sized enterprises, fostering entrepreneurship, and creating job opportunities in rural areas.
- Developing human capital: Investing in education, skills training, and healthcare to enhance workforce productivity.
- Promoting sustainable resource management: Ensuring responsible and equitable utilization of natural resources.
The 2024 Gross County Product (GCP) Report is the fourth in a series of reports produced in 2019, 2021, and 2023 to highlight the economic size, contribution to GDP, and a measure of wealth distributed among the counties.
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