Counties eye four lenders

Lake Region Economic Bloc chairman and Kakamega governor Wycliffe Oparanya (center) , vice chairperson Joyce Laboso (right) and Chief Executive Officer Abala wanga during a press briefing in Kisumu on August 13th 2018. [Photo: Collins Oduor, Standard]

The search for a bank in which 14 county governments plan to buy a controlling stake has been narrowed down to four tier three lenders.

Consultancy firm Deloitte is negotiating with the four said banks from which the participating counties under the Lake Region Economic Bloc (LREB) will pick one to form a regional development bank.

The multinational financial advisory, audit and consultancy firm has a month to conclude the evaluation process and make a recommendation.

The 14-member regional bloc plans to launch the bank next month. LREB chairman and Kakamega Governor Wycliffe Oparanya said on Friday the launch would be held at the bloc’s first trade summit in Bomet.

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“We remain on course in implementing our flagship projects and the first one, the regional development bank, will be launched during our first investment conference,” he said.

Mr Oparanya spoke in Kisumu during a press briefing on the upcoming conference.

At least six of the 14 counties have pledged Sh700 million which will be used to kick-start the purchase of majority shares in a tier three bank.

The contract sum of the project has not been made public, although counties have pledged between Sh50 and Sh200 million towards the project.

Lake Region Economic BlocKakamega Governor Wycliffe OparanyaDeloitteLenders