Kenya’s county governments are operating with sharply different abilities to raise money from their local economies, with six devolved units collecting less than Sh250 per resident while Narok raises Sh4,800 per person, according to a new report examining development across the country.
The 2026 County Development Index (CDI) report, released on Tuesday by the Sustainable Development Goals Kenya Forum, shows a wide gap in locally generated revenue, with the lowest-collecting county raising 48 times less per resident than the highest-ranked county.
Tana River records the lowest collection at Sh100 per person, followed by Mandera at Sh134 and Wajir at Sh180. Marsabit and West Pokot each raise Sh200 per resident, while Garissa collects Sh240.
The findings highlight the differences in the economic conditions and revenue-raising capacity of county governments, with some benefiting from strong commercial activity and established businesses while others face limited opportunities to generate income locally.
Narok tops the rankings with Sh4,800 per resident, followed by Mombasa at Sh4,200. Nairobi comes third among the listed counties with Sh2,500, while Nyeri collects Sh2,100 per person.
Nakuru records Sh1,650 per resident, while Kiambu and Laikipia each collect Sh1,600.
The figures are based on own-source revenue collected by county governments relative to their populations. They provide an indication of how much money devolved units generate within their own jurisdictions compared with the number of people they serve.
Counties raise this revenue through property rates, business permits, parking charges, market fees and other local levies. The funds complement allocations from the national government and other revenue available to county administrations.
According to the report, the ability to raise local revenue is closely linked to the economic opportunities available in each county. Areas with large commercial centres, valuable property, tourism activities and established formal businesses have a wider range of potential revenue sources.
Counties with fewer businesses and limited economic activity, particularly those with populations spread over large areas, have fewer opportunities to collect comparable amounts.
The report also points to broader development differences between counties, noting that urban centres, metropolitan areas and agriculturally productive regions tend to record better development outcomes.
These counties benefit from stronger economic foundations, improved infrastructure and greater capacity to mobilise local funds. They also tend to have stronger human capital systems and relatively better institutional capacity.
By contrast, many counties in arid and semi-arid areas, alongside historically marginalised regions, continue to face challenges that limit economic growth and the delivery of essential services.
The challenges include high poverty levels, weak infrastructure, limited economic diversification, poor access to basic services, vulnerability to climate-related shocks and institutional constraints.
The report assesses county performance across a range of development measures, including public finance and fiscal management, economic performance and livelihoods, human capital, infrastructure and connectivity.
Other areas covered include water, sanitation and hygiene; environmental management and climate resilience; governance, transparency and citizen engagement; social protection, inclusion and gender equity; and crime, justice and personal security.
The findings further show that counties collecting little revenue locally remain heavily reliant on transfers from the national government to finance their operations and development programmes.
This dependence reflects the difficulties some administrations face in generating sufficient income from businesses, property and other activities within their borders.
The report presents the revenue gap as part of a wider pattern of unequal development, with counties recording different levels of progress across economic, social and institutional measures.
"The CDI findings reveal a country that is progressing, but unevenly across counties and development dimensions," the report says.
The wide variation in collections illustrates the different financial conditions under which county governments operate. While counties with stronger economies have more opportunities to raise funds locally, those with weaker economic bases face greater challenges in mobilising resources for public services and development.
The findings place local revenue generation among the key measures for understanding county performance, while showing the continued importance of national government transfers in supporting counties with limited collection capacity.