Nairobi will only get richer at expense of other counties

Nairobi generated 27.5 per cent of Kenya’s gross domestic product (GDP) in 2022, according to the latest economic report by Kenya National Bureau of Statistics.

That was not surprising. But why is Nairobi so wealthy and rich?  A better question is, where and how does Nairobi get its wealth, outdoing 29 counties combined?  

Where is the easier part? From everywhere! Once you make money, you take it to Nairobi, it does not matter if you made it legally or illegally.

Money is brought from the counties and overseas. Remember how Naivas or Nakumatt started elsewhere and once “old enough” came to the city?  

The same applies to individuals. Once old enough chronologically and academically, we come to the city. We bring labour, creativity, innovation and ambition. Rural areas suffer from brain drain. 

Without anyone claiming ownership of Nairobi, we are all welcome. Few other counties are that welcoming. Despite a few enclaves, Nairobi is a national and international city. Diversity drives the city. It’s not just in race and colour but also entrepreneurship. Check the variety and number of small businesses in the city. 

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Nairobi benefits from the government and its resources from the Statehouse to Parliament and all the arms of the government. Add international NGOs and agencies like the UN. 

How is the money made? The influx of men and women to the city creates demand for goods and services.

You can raise your prices and still make money. A cup of tea in rural areas may go for Sh50 and Sh300 in the city, and it’s smaller in the latter. The city has a captive economic audience. The third question should be who creates that money and who gets it. You make money through investment and consumption.

The land, houses and other assets constitute investments. Add education and skill acquisition and their long-term returns. High demand makes investment in the city profitable. Think of rent.   

Most Nairobian consumers (the hustlers) make their money by selling labour. It was not clear from the report what percentage of Nairobi‘s GDP is from consumption.

But it must be higher than investment. A visit to Eastlands could confirm that.  

Remember GDP is made of consumption of goods and services, government spending, business investment, and net exports. All these favour the city! 

Let’s face facts. As long as Nairobi is open, attracts the talented, welcomes them and allows them to test their ideas, the city will remain wealthy, with a dark side, inequality.

Can other counties emulate Nairobi? Frequent visits to the malls will give you an idea of who is making money in the city.