KISUMU, Kenya, Mar 13 – The Lake Region Economic Bloc is in the process of establishing a regional bank with the 14 counties that make up the bloc agreeing to inject Sh2.8 towards the formation of the bank.
The Bloc’s interim Head of Secretariat Abala Wanga says that each county will factor in a contribution of Sh200 million in their 2018/2019 financial year.
Wanga says the county Assemblies are also expected to come up with relevant Bills to safeguard the Bank.
He announced that by October this year, all the counties will have paid the required injection of the capital.
The Counties forming the Bloc includes Bomet, Bungoma, Busia, Homa Bay, Kakamega, Kericho, Kisii, Kisumu, Migori, Nandi, Nyamira, Siaya, Trans Nzoia and Vihiga.
Speaking during a media roundtable meeting, Wanga says the Central Bank of Kenya (CBK) has opened an account for the initiative.
He says the initial capital will be in the custody of CBK until the bloc registers the new Bank.
“Through Controller of Budget a legal instrument was made and a special purpose account was opened at CBK and the money is deducted from the Counties and channeled to the account,” he said.
Already some counties have made full payments while others have made partial payments for the establishment of the Bank.
“Kisumu has given already contributed Sh100 million. Kakamega is in the front line, they have given Sh200 million,” he said.
He announced that the County Assemblies will be taken through the legal instruments establishing the Bloc.
“This is to help them come up with a bill which will domesticate and ratify the legal instruments in their individual counties,” he said.
The regional bank is a flagship project of the Lake Region Economic Bloc and will focus on the economic opportunities supporting sectors of the bloc’s other sectors including agriculture, tourism, health, education, infrastructure and the ICT Sector.