Lake Region Economic Bloc (LREB) Chief Executive Officer Victor Nyagaya has revealed that the bloc has decided to form a Sacco to sustain its economic model.
Nyagaya said the bloc has already done the legal paperwork for registration and that they plan to start with a Sacco then gradually build it into a regional bank.
“Our aim is to set up a bank that will support Small and Medium Enterprises (SMEs) to spur economic growth,’’ said the CEO.
The bloc had earlier contracted Deloitte consultancy firm to help it identify an existing bank for acquisition.
Deloitte began negotiations with four banks before being stopped.
The bloc dropped its long-term plans to set up a multi-billion-shilling regional bank after the Office of the Controller of Budget declined to approve the idea.
Nyagaya said the bloc lacks legislative backing to allow member counties to collect funds for the project.
Each member county should contribute Ksh200 million yet only Kisumu County has at least contributed Ksh100 million.
The CEO stated that the bloc relies on partners to finance some of its projects and thanked partners who have supported them on collaborative projects.
Early this year, as part of its ongoing efforts to promote digital transformation at county levels, Safaricom entered into a partnership with LREB to implement various initiatives aimed at accelerating the region’s adoption of technology.
LREB council chair Prof Anyang Nyong’o, who is also Kisumu county Governor, is optimistic that the bloc’s vision will not be dimmed in the long run.
LREB was formed in 2018 to foster economic development in the great lake region. Member counties include Kisumu, Kakamega, Kericho, Busia, Nandi, Migori, Homa Bay, Siaya, Kisii, Nyamira, Bungoma, Tranzoia, Vihiga, and Bomet.
By Fredrick Odiero
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