• Lake Regional Economic Bloc CEO Abala Wanga on Wednesday assured members of the bloc that they are committed to ensuring the establishment of the bank.
• To establish the bank, each county is required to contribute Sh200 million.
Image: MAURICE ALAL
The formation of the Sh2.8 billion Lake Region Development Bank is still on course despite Treasury Cabinet Secretary Henry Rotich warning that the idea was not viable.
Lake Regional Economic Bloc CEO Abala Wanga on Wednesday assured members of the bloc that they are committed to ensuring the establishment of the bank.
Member counties are Kisumu, Migori, Nandi, Bomet, Kakamega, Siaya, Busia, Homa Bay, Kisii, Vihiga, Trans Nzoia, Bungoma, Kericho and Nyamira.
To establish the bank, each county is required to contribute Sh200 million. Already, Sh800 million has been committed by different counties.
Last month, while appearing before the National Assembly Committee on Finance and National Planning, Rotich said the counties under the bloc did not have the financial clout to sustain a bank.
Rotich advised the counties to first experiment with a micro-finance organisation if they must continue with the plan.
The CS said that the regional bank idea works well in America because the country has large states which can sustain the business.
The bank is the mega flagship project of the 14-county bloc. Currently, he said the bloc stands to realise Sh2.4 billion towards the establishment of the bank.
But Wanga said a bill for the enactment of the bank has been signed by six counties.
Busia county assembly was the latest to sign the Bill after Nyamira, Kisii, Kisumu, Migori, and Kakamega.
However, eight counties — Homa Bay, Nandi, Kericho, Vihiga, Bungoma, Siaya, Trans Nzoia, and Bomet — are yet to do so.
Wanga told the Star progress had been made in the acquisition of a bank.
“We are currently negotiating with various banks on how we can acquire major shareholding and are optimistic that in the next three months, this will be finished,” he said.
Wanga acknowledged the concerns and challenges that the project is facing both in terms of capital and policy but said the bank plans will not be put on hold.
“We are still committed to leveraging the economies of scale for better livelihood of approximately 14 million people in the bloc,” he said.
The CEO said their commitment towards the development agenda of the people remains steadfast and the realisation of the bank remains anchored on a people driven economy and access to finances.
He said the regional development bank will be the best solution to the people’s financial challenges.
Bloc chairman and Kakamega Governor Wycliffe Oparanya have held talks with private investors and development partners who have expressed interest in supporting the bank.
Oparanya, he said, will give a comprehensive statement outlining a new strategy for the project after a summit meeting in Siaya on July 19.
Apart from the bank, Wanga said the bloc has other flagship projects including the revival of the maritime transport and services on Lake Victoria.
He said lack of a legal document for the establishment of the bloc had been a hindrance because many development partners and donors felt restrained to work with the bloc without a legal framework.
“Now that the legal hitch has been dealt with, I want to call on board donors and partners to work with us so that we transform the region economically," Wanga said.
The bloc intends to achieve sustainable development through coordination, promotion, resource mobilisation, innovation and enhancement of economic integration.
(edited by O. Owino)