The Lake Region Economic Bloc has abandoned ambitions to create a multibillion-dollar bank after encountering numerous implementation challenges.
One of the bloc’s main projects for 2014 was the idea for the creation of a Ksh2.8 billion bank.
Members of the bloc include the counties of Kakamega, Siaya, Homa Bay, Migori, Kisii, Nyamira, Bomet, Kericho, Nandi, Busia, Bungoma, Vihiga, and Trans Nzoia.
But because of reservations voiced by the Office of the Controller of Budget over the bank concept, the bloc has now turned its focus to the development of a cooperative society.
The COB informed the bloc that it would be hard for all of the member counties to transfer money to start a bank, according to Victor Nyagaya, CEO of LREB.
“There were worries that the bank’s establishment would put a pressure on the financial operations of counties, including the payment of salaries and the management of sizable development projects and programs that are funded by the federal government,” according to Nyagaya.
Only Kisumu County sent a Ksh100 million payment that was deposited into a fixed deposit account.
