Nairobians' income nearly triple national average as Lamu's rises

The average income of Nairobi residents continued to grow and was nearly three times more than the average earnings in 2023.

A new report by the Kenya National Bureau of Statistics (KNBS) shows that the Gross County Product (GCP) per capita – an indicator of the average income of county residents – stood at Sh802,344, which was almost three times the Gross Domestic Product (GDP) per capita of Sh293,000 in 2023.

This is even as the per capita GCP of Lamu County residents also grew to Sh304,024, with that of the coastal county now ranking fifth in terms of GCP per capita.

Ahead of Lamu are Mombasa with a GCP per capita of Sh507,337, Nakuru (Sh334,667) and Nyeri (Sh317,459). The per capita GCP for Lamu has grown 44 per cent since 2020 from Sh211,577. The county, which is heavily reliant on tourism and fishing industries could be benefiting from increased focus on the blue economy, including the operationalisation of Lamu port. Lamu was number 13 in terms of GCP per capita in 2022 and has in the latest report surged past counties such as Kiambu (Sh286,788) that greatly benefited from spillovers from Nairobi but is also wealthy due to booming sectors such as agriculture and real estate. Lamu is also ahead of the other two counties with cities, Kisumu (Sh274,947) and Uasin Gishu (Eldoret City – Sh277,799).

The KNBS report also highlighted major disparities among the wealthy and poor counties, with the majority of the counties at 38 reporting a GCPP per capita that was lower than the national GDP per capita in 2023.

“In the period under review, nine counties registered GCP per capita higher than the national GDP per capita of Sh293,229 reported in 2023,” said KNBS in the GCP report.

“Nairobi City leads with a GCP per capita of Sh802,344, nearly three times the national average. This dominance is driven by Nairobi’s status as the capital city and the major economic hub. Mombasa was second, with a GCP per capita of Sh507,337. Other counties that recorded GCP per capita figures significantly above the national average include Nakuru (Sh334,667), Nyeri (Sh317,459), and Lamu (Sh304,024).”

It notes that the leading counties have diversified economies with strong contributions from agriculture, manufacturing, and services.

Residents of counties with higher GCPs per capita ideally have higher living standards and lower poverty levels.

At the bottom was Mandera with a GCP per capita of Sh72,764. Other counties where residents had a low per capita income are Isiolo (Sh119,139), Samburu (Sh113,073), Garissa (Sh81,775) and Wajir (Sh79,376). The report also shows that Nairobi continued its dominance among counties in its contribution to Kenya’s economy despite its contribution shrinking, albeit marginally while that of Nakuru, which has recently been elevated to a city, grew.

Nairobi’s contribution to Kenya’s Gross Domestic Product (GDP), which is the total value of goods and services that Kenya produces in a given year, stood at 27.4 per cent in 2023, according to a new report by the Kenya National Bureau of Statistics (KNBS). This was slightly lower than 27.7 per cent, which was its share of GDP in 2022. Over a five-year period, Nairobi’s contribution to Kenya’s GDP has averaged 27.5 per cent.