• Most of the 14 member counties do not want to fund the bank
• Motion to allocate funds wasn't seconded
Governor Stephen Sang of Nandi has suffered a blow after MCAs declined to approve Sh200 million to set up the Lake Region Economic Bloc development bank.
Each of the 14 LREB counties is required to allocate the money but the Nandi MCAs in Nandi failed to approve a bill by the county executive. It would allow the county to give the money to LREB to set up the Lake Region Bank.
When the bill came up for a second reading, motion sponsor David Bwambok could not get one of his colleagues to second the bill.
The MCAs just stared Bwambok as the Speaker called out for a seconder. MCA Teresia Maiyo who seconded the bill at the first reading did not respond.
According to assembly rules, once a bill from the Executive or private member is defeated or rejected, it can only be tabled again after one year.
Sang has been active in backing LREB and the move by MCAs was a slap in the face. Assembly sources said the MCAs were silently protesting against Sang's leadership style.
Senator for Nandi Samson Cherargei has said the bank is not a priority for residents.
“MCAs should not pass such wastage of resources. We can use the money on better projects," he said.
Fourteen governors who form the economic bloc met in Nandi last November. Kakamega Governor Wycliffe Oparanya, who chairs the bloc, pleaded with governors to swiftly fund LREB’s flagship project.
Oparanya said the bank was expected to start operation in February this year but most assemblies hadn't capitalised it.
MCAs accuse governors of failing to consult widely.
At the conference Sang said, “Nandi county will not frustrate formation of the bank because the county stands to benefit more from the regional bloc." There was supposed to be public participation.
Nandi had withdrawn from being an active member of the North Rift Economic Bloc (Noreb) and chose to join LREB but the latest move. But the MCAs sent him back to the drawing board.
Cherargei has asked assemblies in the lake region counties to reject the bank, arguing that Sh2.8 billion needed could be used on better projects.
“The bank will add no value to our people or the county governments. We have enough banks in this country and there will be nothing new with another one," the senator said.
He said the counties did not conduct public participation.
In supporting LREB, Sang argues Nandi will get better markets for milk and vegetables, among other benefits.