The town derives its name from the Maasai word e-naiwurruwurr, meaning waterfall or windy or place of storms.

Nyahururu formerly functioned as the administrative capital of Nyandarua District, before it became a county and until the headquarters were shifted to Ol Kalou.The town has an estimated urban population of 36,450.

The town was once an important player in the timber milling industry, and the now defunct National Pencil Company had a factory there.

To the North, Ol Ngarua is famous for its maize, while Shamata to the south is a major producer of potatoes.

The cool temperate weather, land availability and cheap labor may be some of the attractions to flower farming.

Nyahururu is also frequented by marathon and cross-country runners for practicing before major events due to its high altitude.

In 2010, Nyahururu was the site of an internationally reported incident in which police rescued a woman who was under threat of lynching after she shoplifted two Bibles from a supermarket.

[4] In September, 2008, residents of the town were shocked to see a blanket of hail resembling snow covering their land following a thunderstorm.