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The Standard

Lake region bloc abandons plans to establish Sh2.8b bank 9 years later

By Sharon Owino | 1yr ago
Victor Nyagaya, CEO of LREB. [Michael Mute, Standard]

The Lake Region Economic Bloc (LREB) has shelved plans to establish a multi-billion bank after running into several hurdles to implement the project.

The plans for the establishment of a Sh2.8 billion bank were mooted in 2014 as one of the flagship projects for the bloc.

The bloc's members are Kisumu, Siaya, Homa Bay, Migori, Kisii, Nyamira, Bomet, Kericho, Nandi, Busia, Bungoma, Vihiga, Trans Nzoia, and Kakamega counties.

Now, however, the bloc has shifted its attention to the creation of a cooperative society due to concerns raised by the Office of the Controller of Budget (COB) on the bank project.

According to Victor Nyagaya, CEO of LREB, the COB told the bloc that it was impossible for all the member counties to transfer money to open up a bank.

"There were concerns the establishment of the bank would strain the financial operations of counties on operations such as payment of salaries, running of huge development projects and progammes which are run by money from the national government," said Nyagaya.

Kisumu is the only county that remitted a sum of Sh100 million which was deposited into a fixed deposit account.

Related Topics

["Lake Region Economic Bloc","LREB","Controller of Budget"]
.

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      • vendor/laravel/framework/src/Illuminate/Cache/CacheManager.php:408
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      Backtrace
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      Backtrace
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      Backtrace
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      Backtrace
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