Lake region economic bloc takes shape but many hurdles remain

LREB head of secretariat Abala Wanga (left) and Lake Basin Development Authority acting MD Evans Atera exchange documents during signing of a partnership in Kisumu on Tuesday. file | ondari ogega  

In Summary

• LBDA managing director Evans Atera said there is huge potential lying in the region which needs to be tapped.

By VICTOR RABALLA
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Counties in western Kenya are banking on the establishment of a regional economic bloc at the end
of this month to propel their development agendas. Leaders hope decisions made by the partnership will help drive their growth plans.

However, all eyes will be on how they will raise the Sh2.8 billion seed money amid shortfalls in revenue collection.

During a meeting to be held at Kakamega Golf Club, governors who will be hosted by Mr Wycliffe Oparanya, are expected to approve the ‘mini-lateral’ cooperation of the neighbouring counties.

Members include Bomet, Bungoma, Busia, Homa Bay, Kakamega, Kericho, Kisii, Kisumu, Migori, Nandi, Nyamira, Siaya, Trans Nzoia and Vihiga counties.

According to interim head of the secretariat, Mr Abala Wanga, the leaders are expected to sign draft legal instruments and county assembly bills to be tabled before the summit and eventual adoption in the respective county assemblies.

“The passage of the bills at the county assemblies will legalise the entity and make it possible for the parties to achieve the dream of a properly instituted bloc with operational organs working to deliver to the residents of the region,” he said.

The bloc’s assisting legal officer, Ms Sylvia Awuor, said it will take a quorum of six governors to institutionalise and operationalise the regional bloc.

Adoption of the Lake Region Economic Bloc (LREB) Bill will also make it possible for the county assemblies to pass budgets associated with the bloc and enable parties to fulfil their financial commitments towards unity.

This comes even as the majority of the counties are yet to contribute their Sh200 million share to set up a regional bank, which had been earmarked as the flagship project to be opened before end of the year.

“We hope that the county assemblies will now factor in their contribution in the upcoming budget of 2018-2019 financial year,” said Mr Wanga.

Director of Policy and Strategy John Manyolo said a deadline of October has been set for counties to deposit their contributions to the special-purpose account opened at the Central Bank of Kenya. The account was opened following the approval of the Office of Controller of Budgets.

Mr Manyolo said the proposed bank will seek to strengthen the socio-economic development of the region. The head of the secretariat indicated that Kakamega has already fulfilled its part while Kisumu has paid a deposit of Sh100,000.

“As a way of strengthening the pact, parties will be encouraged to use the financial institution to pay their workers and advancement of loan facilities among others,” said Mr Wanga.

Former Kenya Commercial Bank chief executive officer Martin Oduor-Otieno has been appointed as the chief consultant of the project.

Options to be considered at the summit level include the setting up of a new banking institution, acquisition of an existing facility or buying of shares in an existing money lending organisation.

READ: SGR plan rekindles hope for regional trade in Kisumu

Other projects to be implemented by the bloc include the upgrade of airstrips in all counties, construction of Lake Victoria ring road and establishment of a fruit processing plant.

The March 26 meeting will be followed by a donor round table which will involve potential partners such as the World Bank and the USaid among others.

On the other hand, the 14 governors are scheduled to endorse the partnership between the Lake Basin Development Authority (LBDA) and LREB.

LBDA managing director Evans Atera said there is huge potential lying in the region which needs to be tapped.

Kisumu Governor Anyang’ Nyong’o attributed the slow realisation and implementation of the bloc’s activities to electioneering and transition periods.

He, however, called on his counterparts to put aside political differences to be able to address common challenges and seize opportunities that transcend county boundaries.
The economic bloc was founded in 2014.