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Economic Growth Shifts: Rural Counties Surge as Urban Centres Slow, Report Shows

Michelle Ngina by Michelle Ngina
January 8, 2026
in Business, Counties
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Economic Growth Shifts: Rural Counties Surge as Urban Centres Slow, Report Shows
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NAIROBI – Kenya’s economic growth is showing a notable geographic shift, with 10 predominantly rural counties leading the expansion in 2024, while major urban and industrial hubs experienced a relative slowdown, according to the latest Gross County Product report from the Kenya National Bureau of Statistics (KNBS).

The Rural Growth Engines

The top-performing counties were Meru, Uasin Gishu, Murang’a, Bungoma, Embu, Turkana, Siaya, Taita Taveta, Garissa, and Mandera. Together, they contributed an additional Sh106.5 billion to the national economy, which grew by Sh1.15 trillion overall in 2024.

“Counties with vibrant agricultural activities have generally recorded stronger performance compared to others. Meru County’s strong performance is largely attributed to the diverse nature of its agricultural production, especially crop production,” the KNBS report highlighted.

Meru increased its share of the national economy from 3.4% to 3.5%, reinforcing its position as the top contributor to Kenya’s agricultural sector (8.1%). Uasin Gishu grew from 2.5% to 2.6%, while Murang’a and Bungoma each increased from 1.9% to 2.0%.

Agriculture Drives the Rebound

The resurgence in these regions is largely attributed to a rebound in agriculture, reversing a trend of sluggish growth that had affected farming areas in recent years. KNBS noted that despite weather fluctuations over the past five years, agriculture’s share of the economy has remained a stable pillar at an average of 21.8%.

The Urban Slowdown

In contrast, the report shows a slowdown in urban centres. Six counties, led by Nairobi, saw their share of national economic activity decline. Nairobi’s contribution slipped from 27.8% in 2023 to 27.4% in 2024. This shift indicates a changing economic dynamic where rural, agriculturally-driven growth is outpacing that of some traditional industrial and service-based urban hubs.

The data paints a picture of a diversifying national economy where the performance of agricultural counties is becoming an increasingly significant factor in overall growth, even as urban centres like Nairobi remain the largest single contributors.

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