The peninsula has one of the state's most diverse economies. Performance of major industries-oil and gas, commercial fishing, and tourism-remains strong. The oil and gas industry is composed of exploration, extraction, storage, processing/manufacturing, and transportation and accounts for approximately one-third of the labor force.

Commercial harvest and processing of fish in the borough traditionally includes: five species of salmon, halibut, three species of crab, shrimp, clams, scallops, herring, and various groundfish. New markets are presenting themselves in farmed oysters, mussels, seaweed, sea urchin, sea anemone, and various other seafood products. Tourism is the fastest growing industry in the borough. Created in 1991, the Kenai Peninsula Tourism Marketing Council enjoys widespread membership.

The timber industry is an emerging part of the local economy with an automated lumber mill on the eastern peninsula and a large chipping operation located on the southern peninsula.