Economists have warned over the emergence of county trading blocs in Kenya that are not backed by legal and institutional frameworks according to KBC. As county government rush to create trading blocs, the lack of policies could be a threat to their growth and survival.
County governments have in the recent years formed trading blocs based on geographical, historical, economic, and political similarities. These trading blocs aim to promote the economic growth of these regions through resource mobilization and policy harmonization.
Currently, there are six blocs in the country representing different regions in all the 47 counties. These blocs include:
- •Frontier Counties Development Council (FCDC) which has seven member counties. They include Garissa, Wajir, Mandera,Isiolo, Marsabit, Tana River and Lamu.
- •North Rift Economic Bloc (NOREB) which has seven member counties that include Uasin Gishu, Nandi, Elgeyo Marakwet, West Pokot, Baringo, Samburu and Turkana
- •Lake Region Economic Bloc (LREB) with 13 county members including Migori, Nyamira, Siaya, Vihiga, Bomet, Bungoma, Busia, Homa Bay, Kakamega, Kisii, Kisumu, Trans Nzoia and Kericho.
- •Jumuia ya Kaunti za Pwani with six county members namely Tana River, Taita Taveta, Lamu, Kilifi, Kwale and Mombasa.
- •Mt Kenya and Aberdares Region Economic Bloc with ten county members namely Nyeri, Nyandarua, Meru, Tharaka Nithi, Embu, Kirinyaga, Murang’a, Laikipia, Nakuru and Kiambu.
Lack of Legal and Institutional Frameworks
According to economists, there is a need to have a legal and institutional framework to guide these trading blocs and ensure that the blocs achieve their objectives.
To this end, the Ministry of Devolution is planning on creating a policy that will guide and inform on the process of creating a trading bloc.
The Lake Region Bloc has been vocal about its plans to establish an investment bank that will spearhead development funding in the region.