Governors from lake region to acquire bank
What you need to know:
Lake Region Economic Bloc chairman Wycliffe Oparanya said former KCB chief executive Martin Oduor has been tasked to help identify a good bank for the bloc’s Sh2.8 billion project.
He said they decided to buy an existing bank instead of establishing brand new which will take time especially in having structures in place.
He said they have already established a legal framework supported by a resolution of the 14 county assemblies.
Fourteen governors from the lake region have said they will acquire an already existing bank to boost their development agenda.
The governors under the Lake Region Economic Bloc (LREB) yesterday said they are at an advanced stage with their plans.
LREB chairman Wycliffe Oparanya (Kakamega Governor) said former Kenya Commercial Bank chief executive Martin Oduor has been tasked to help identify a good bank for the bloc’s Sh2.8 billion project.
“We have decided to buy an existing bank instead of establishing a new one, which will take time,” Mr Oparanya said at Lesavanna Hotel in Kisumu.
The counties under the bloc are Kisumu, Kakamega, Bomet, Bungoma, Busia, Homa Bay, Kericho and Kisii. Others are Migori, Nandi, Nyamira, Siaya, Trans Nzoia and Vihiga.
Mr Oparanya said they are already at an advanced stage of the project and have discussed it with the Controller of budget, Auditor General and the Governor of the Central Bank.
“It is an issue we have had wide consultation and are optimistic that it will not fail,” he said.
Mr Oparanya said they decided to acquire an already existing bank to avoid delay in starting operations.
“We have decide to buy an existing bank instead of establishing brand new which will take time especially in having structures in place. We want a smaller bank where we have a controlling share,” Mr Oparanya said at Lesavanna Hotel in Kisumu.
He said they have already established a legal framework supported by a resolution of the 14 county assemblies.
“We have a binding agreement signed by 14 governors to guide in formation of LREB. Our bank will just be like any other bank but have a bias in terms of lending to this region but it will have its headquarters in Nairobi,” said Mr Oparanya.
He said: “We agreed that each county will contribute Sh200 million. We expect to raise Sh2.8 billion by end of next year.”
He disclosed that the bloc has already come up with possible banks to approach.
“Homa Bay County assembly has approved Sh50 million in their supplementary budget for this endeavour and we hope other counties too will follow suit. So far we have Sh100 million in the account contributed by Kisumu County,” the LREB Chairman said.
Mr Oparanya said on May 11, the 14 county chiefs will have a meeting with county assembly leadership to engage them on the project and what is required of them to make it a success.
“As soon as the counties agree through adopting the legal instrument in their assemblies, then their resolution will bind all the 14 to enable as kick off the project.”
He said that the legal framework will ensure the project remains afloat even if pioneer governors’ terms end.
