Council of Governors Chairman Wycliffe Oparanya at a past press briefing in Nairobi on Tuesday, May 20, 2020. [Jonah Onyango, Standard]
Business News
Kenya’s regional economic blocs include LREB, the North Rift Economic Bloc and the Central Kenya Economic Bloc
County governments will not be allowed to transfer monies to their
various regional blocs to undertake common projects until new
legislative framework is put in place.
Some regional blocs had already started aggressive stimulus economic projects to leverage their economies of scale.
Council of Governors and Lake Region Economic Bloc (LREB) Chairman
Wycliffe Oparanya said all financial contributions to the blocs have
been put on hold pending the new law.
"We have been advised by Devolution CS Eugene Wamalwa to wait until the
government comes up with a regulatory framework to guide the use of the
funds towards our regional blocs’ project," he said at a press briefing
in Kisumu on Wednesday.
The legislative framework for the regional economic blocs is expected to
address the nature of instruments of co-operation, the powers of the
regional economic blocs and their financing models.
It will also put in place mechanisms of leveraging synergies with the
national government, private sector and international frameworks in
expanding economic frontiers of the counties to boost their economies.
The policy guideline will also address issues of shareholding or
ownership of regional blocs’ projects and dispute resolution mechanisms
to be applied in arbitrating disputes.
Already, the government has drafted the policy, which is awaiting the
Cabinet’s discussion and subsequent approval before it is submitted to
the National Assembly, and thereafter the Senate.
"It is after the draft Regional Blocs Bill has been tabled and ratified
by Parliament that we shall now be allowed to go ahead and contribute
monies toward joint regional bloc projects," said Mr Oparanya.
The country's regional economic blocs include LREB (14 counties),
the North Rift Economic Bloc (seven counties) and the Central Kenya
Economic Bloc (10 counties).
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