Best locations for new businesses identified

Nandi, Kisumu, and Nyamira counties present the strongest opportunities for business growth, according to the newly released Kenya Opportunity Index 2026. The index ranks counties based on their local economies’ readiness to support enterprise growth.

The report, based on responses from 2,939 entrepreneurs across 44 counties, places Nandi at the top with a score of 61.2, followed by Kisumu at 61.0 and Nyamira at 60.7.

County Rankings

The index, developed by entrepreneur and researcher Eunice Maina-Mburu, measures “opportunity readiness,” assessing how entrepreneurs can access markets, predict demand, and grow their businesses within local economic systems. Scores are calculated on a scale of 0 to 100, based on a 12-question survey examining factors such as demand stability, market reach, access to programs, and business organization.

Alongside Nandi, Kisumu, and Nyamira, the top ten counties are Tana River (59.9), Vihiga (59.7), Mombasa (58.5), Lamu (58.2), Laikipia (57.5), Turkana (57.4), and Murang’a (52.0).

Economic Categories

Most of these counties fall within what the report describes as a “transition economy,” where entrepreneurs are beginning to experience clearer market signals and more structured opportunities for growth. Overall, Kenya scored 47.4 out of 100 on the national “Hustle-to-Structure Index,” suggesting the country still largely operates in a “hustle economy,” where entrepreneurs work hard but face fragmented markets and unpredictable demand.

For example, Nandi, the highest-ranked county, sits within the report’s “structured opportunity” category, meaning entrepreneurs there report clearer demand signals and better ability to scale businesses. By contrast, counties lower on the scale illustrate the challenges many businesses face. In Bomet, which scored 36.7, most respondents described their economic outlook as focused on daily survival, with enterprises operating in small, local markets and struggling with limited sales and marketing capacity.

Policy Implications

Researchers say strengthening structured markets, from agricultural value chains to housing supply chains and digital platforms, could help convert Kenya’s strong entrepreneurial culture into more stable economic growth. Small businesses form the backbone of Kenya’s economy, employing roughly 14.9 million people and contributing about 40% of GDP.

The index is expected to serve as a baseline for future measurements, tracking whether counties are improving their ability to support entrepreneurs and connect them to larger economic opportunities. At the launch, Principal Secretary for Micro, Small and Medium Enterprises Development, Susan Auma Mang’eni welcomed the report’s findings, saying the insights come at a crucial time as the government reviews the national MSME policy framework. She raised questions about how markets can be better structured for sectors such as boda boda operations and how informal traders can be integrated into more organized market systems. The PS also emphasized the importance of ensuring that insights from the Fursa Index inform the ongoing MSME policy review.