Which is the richest county in Western Kenya? We look to data from CBK and KNBS to reveal western Kenya counties rich list. While CBK data gives us the number of banks and the corresponding bank penetration in the counties, KNBS data informs us of not only the population of these counties, but also the county average share of GDP. Together, this data makes for interesting reading.
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Ranking western Kenya counties the data vs perception
Going by the YOLO influenced splashing of cash that one may come across in parts of Busia, one may be tempted to say the border economy edges Busia ahead in the western Kenya counties rich list. If political spend is your measure, then Kakamega and Bungoma should be vying for number one. Maybe the eye test, or better still, if you have ever tried shopping for groceries in Mbale, Chavakali or any of the smatterings of market centers that dot Vihiga, you will be convinced this land of a granite rock has to be the richest – the cost of vegetables, fruits etc. is crazy in Vihiga! Get lost in the maize plantations of Endebbes in Trans Nzoia or mesmerized by talk of healthy margins ‘exporting’ timber and horticulture to Turkana county and you may have a case for Trans Nzoia
| County | Bank branches | Bank Penetration | County Share of GDP (Average 2013-2017) | Population (millions) |
|---|---|---|---|---|
| Kakamega | 18 | 1.2% | 2.40% | 1.867579 |
| Bungoma | 16 | 1.1% | 2.30% | 1.67057 |
| Trans Nzoia | 14 | 0.9% | 1.7% | 0.990341 |
| Busia | 10 | 0.7% | 1.00% | 0.893681 |
| Vihiga | 6 | 0.4% | 0.80% | 0.590013 |
3 things from the western Kenya counties rich list
Dislaimer: The following observations are just that – observations. They are not based on any real data but the authors common knowledge of western Kenya. Investors are advised to undertake due diligence if they chose to work with this information.
Follow the people, find the money.
Kakamega, the richest county, population is roughly three times that of Vihiga the poorest. It follows that the number of banks in Kakamega 18 is thrice those in Vihiga at 6. These counties contribution to Kenya’s GDP also follows a simillar pattern with Kakamega’s 2.4% being exactly three times Vihiga’s 0.8%
A snapshot of local western Kenya counties economies
Busia’s 10 bank branches and bank penetration of 0.7% can be said to be an overkill given it’s paltry 1.0% contribution to Kenya’s GDP. While these Busia figures follow population as we’ve learned, it appears the economies of western Kenya counties are largely the same.
This is interesting as it flies in the face of our common knowledge. I mean the two border posts (Busia town and Malaba) linking Kenya and her most important regional trade partner, Uganda, ought count for something right? What about the blue economy in Port Victoria? Or the local vibrant entertainment scene epitomized by the never ending party at Nalongo?
This should be a game changer for Busia me thinks. Compare Busia with Vihiga data and only 0.1% places Busia ahead in contribution to national GDP this is despite Vihiga’s economy being mainly subsistence farming and small scale tea growing.
Also, let’s not forget the likely boost to Kakamega’s economy once the gold in Ikolomani is mined as has been in the works.
Devolution fails to solve old problems?
My attention is drawn to the richest county, Kakamega. In a perfect world, the much talked about gains with devolution in Kakamega should have seen this populous county outpace its neighbors. That said, it is worth noting that the data of contribution to national GDP is not recent.
For Trans Nzoia county, being a bread basket and downstream from Turkana county’s oil riches ought bring economic gains. Agriculture is a devolved function under The Constitution of Kenya 2010. With time, it is therefore reasonable to expect a visible boost in Trans Nzoia’s banking and GDP data form county government investments.
But the perennial woes of maize farmers inform us maybe not. In similar vein, the collapse of the sugar industry in Busia, Bungoma and Kakamega can explain these three western Kenya giants lackluster performance in contributing to national GDP.
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