Governors back regional bank proposal

Bungoma County Governor Ken Lusaka. Plans for a microfinance institution in western Kenya have won the support of five regional governors, including Governor Lusaka, Governors Ken Lusaka (Bungoma), Wycliffe Oparanya (Kakamega), Moses Akaranga (Vihiga), Patrick Khaemba (Trans Nzoia) and Sospeter Ojaamong (Busia). PHOTO/ISAAC WALE   NATION MEDIA GROUP

In Summary

• The initial capital base of Mulembe Bank to be Sh1 billion, suggest leaders during forum.
• Bungoma Governors Ken Lusaka said that governors would consult widely and support programmes meant to transform the region’s economy.

By ERICK NGOBILO
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Plans for a microfinance institution in western Kenya have won the support of five regional governors.

 

The finance institution, to be known as Mulembe Investment Bank, would go a long way to reduce poverty in the area, said the governors.

Governors Ken Lusaka (Bungoma), Wycliffe Oparanya (Kakamega), Moses Akaranga (Vihiga), Patrick Khaemba (Trans Nzoia) and Sospeter Ojaamong (Busia) expressed their support after a meeting at Webuye Guest House.

Mr Akaranga said the meeting had agreed that the investment bank should start promptly, with each political leader buying a minimum of 100 shares at Sh10,000 each.

INITIAL CAPITAL BASE

Mr Lusaka said the bank would have an initial capital base of Sh1 billion.

He said that governors would consult widely and support programmes meant to transform the region’s economy.

The governors wanted issues that cut across the counties addressed collectively.

“Why should a road that connects two or three counties be rehabilitated in only one county?” asked Mr Lusaka.

Infrastructure, especially roads, would be put up in the region to link the counties, he said.

Mr Lusaka said the governors will soon roll out joint development initiatives that will see the region's economy and infrastructure transformed.

ECONOMIC GROWTH

Luhya Elders Forum chairman Mr Patrick Wangamati, who is also a Ford Kenya nominated MP, said the microfinance institution will get some of its funding from counties, which are permitted by law to invest a maximum of Sh250 million for such ventures, and shareholders.

Mr Wangamati said the microfinance is tailored to spur development in the region and improve the welfare of the over five million people, of whom 60 per cent live below the poverty line even though the area has rich agricultural potential.

“Our counties are rich but the people are poor. We want the residents to invest in this initiative that will transform lives,” he said.

He added that as elders they will continue to identify projects that will spur economic growth in the area and unite the residents for the political good.

“ We want our people to be empowered and united to make good choices both politically and economically,” he said