Launch of bank in doubt as MCAs fail to pass critical bill

The launch of a bank by the Lake Region Economic Bloc (LREB) later this month could be delayed after members county assemblies failed to adopt an agreement signed by 14 governors in Kakamega.

Only Kakamega and Kisii assemblies have passed the bill endorsing the formation of the bloc that was ratified in March.

While bloc chairman and Kakamega Governor Wycliffe Oparanya expressed confidence in the development, launching the bank during the October 21-24 conference in Bomet County could hit a snag.
At least six county assemblies should ratify the legal instruments to anchor it into in law.

“To hasten the process, we have appealed to the remaining 12 assemblies to pass the LREB Bill by the end of November,” Mr Oparanya said after a meeting with 703 MCAs and their leaders at Simba Club, Kisumu County.

Mr Oparanya said the process of registering the bank is on, adding that the institution would benefit the more than 10 million residents of Lake Victoria region.

The meeting was attended by Kisumu Governor Anyang’ Nyong’o, Dr Joyce Laboso (Bomet), Dr Wilbur Otichillo (Vihiga), Mr Cornel Rasanga (Siaya) and Kisii, Homa Bay and Trans Nzoia deputy governors.

There was no representation from the executive members of Migori, Bungoma and Nyamira counties.

The three-day LREB Trade, Investment and Blue Economic Conference will be attended by President Uhuru Kenyatta, according to Dr Laboso, the bloc vice chairperson.

Every county government agreed to fork out Sh200 million to realise the formation of the bank, LREB’s inaugural flagship project.

Governor Oparanya in August raised concerns over the delay to pay as some counties are yet to make the initial deposits.

Governor Nyong’o urged the ward representatives to pass the bill and note the areas that should be amended.

He said the changes would be incorporated in the draft agreement.

The county bosses say they hope the cooperation will leverage on shared boundaries and resources to benefit residents.

The passing of the bill at the county assemblies would legalise the economic bloc and make the outfit fully functional.

It would pave the way for partnership in tourism, agriculture, education and finance.

On agriculture, the deal seeks to finance commodity exchange to boost the production of sugar, tea and cotton and other crops.

Mr Oparanya, however, said the governors have resolved to establish a bank whose operations and headquarters are yet to be agreed on.

“The bank will begin operations by early next year and we are asking county assemblies to speed up the passage of the bill,” the Kakamega County boss told the Sunday Nation by phone.

“For years, farmers have suffered as they have not been able to secure loans,” Mr Oparanya said.

Additional reporting by Wycliffe Kipsang and Tom Matoke.