Kenya’s booming real estate and construction sectors have emerged as major engines of growth in the country’s most competitive counties, as property development and infrastructure expansion continue to reshape regional economies.
- •A new County Competitiveness Index (CCI) 2024 by the Ministry of Investments, Trade and Industry ranks Nairobi, Kiambu, Nyeri, Murang’a, and Nakuru among the country’s most competitive counties — with real estate and related industries playing a central role in their rise.
- •The report shows that Nairobi, which scored the highest with a competitiveness index of 77%, remains Kenya’s real estate powerhouse.
- •The CCI report notes that the surge in real estate investment outside Nairobi reflects a broader decentralisation of economic activity and improved county-level governance and infrastructure.
“Strong institutional frameworks, infrastructure development and well-managed land use policies are proving to be decisive factors in determining county competitiveness,” the report says.
The capital’s property market, buoyed by a growing middle class, rising demand for commercial spaces, and an expanding transport network, continues to attract both domestic and foreign investors. The city also benefits from strong financial services, construction, and ICT linkages ,sectors that complement its thriving property industry.
Counties with proactive urban planning, clear land policies, and better public services are increasingly attracting private capital.
Kiambu County, ranking second nationally, mirrors Nairobi’s momentum as rapid urbanisation spills over from the capital. The report highlights manufacturing, real estate and construction as key drivers of Kiambu’s competitiveness. The county has witnessed a surge in gated communities, industrial parks, and logistics hubs, particularly in Thika, Ruiru, and Kikuyu, transforming its skyline and job market.
Nakuru, which posted a 57% score, continues to leverage its strategic location along the Northern Corridor. The county’s construction, real estate and transport sectors now account for a growing share of local output, supported by improved road infrastructure and the ongoing revival of the Nakuru–Kisumu railway line. The emergence of Naivasha as a logistics and industrial hub has further boosted land and property values in the region.
Counties in the Mount Kenya region, including Nyeri, Murang’a, Kirinyaga, and Embu, are also reaping from the real estate wave. While agriculture remains the economic backbone of these areas, real estate and construction are among the fastest-growing sectors, driven by population growth, rising incomes, and investments in housing and urban amenities.
Nyeri and Murang’a, which both scored 61% in the index, have seen steady expansion of residential and mixed-use developments, while Kirinyaga’s Sagana industrial and agribusiness zone is spurring complementary real estate demand.