The town and the surrounding areas boast one of Kenya's highest average rainfalls, making Bungoma one of the nation's most important food baskets.

There is a small but important tourist circuit, centring on the biennial circumcision ceremonies that are mostly practiced by the Bukusu, Tachoni and Sabaot peoples.

Other smaller-scale manufacturing activities include steel crafting, iron sheet production, garages and auto repairs.

This is because more than 67000 farmers directly depend on Nzoia Sugar Company Ltd.[3] Early businesses were supported by the Kenya-Uganda Railway which passes through the town.

The collapse of Webuye paper mills and the struggling Nzoia Sugar Company has led to an economic nightmare in the county.