The Lake Region Economic Bloc Investment Bank will begin operations in October according to the Kakamega County governor and the chairman of the bloc Wycliffe Oparanya. He also said the bank has received an initial capital of Sh2.8 billion raised by member counties.
“We are going to have an inaugural investment conference in October this year in Bomet County. It is during the investment conference that we will officially launch the bank to commence operations,” he said.
The member counties of the bloc include Kakamega, Bungoma, Bomet, Busia, Vihiga, Homa Bay, Kericho, Kisii, Kisumu, Migori, Nyamira, Nandi, Siaya and Trans Nzoia.
Oparanya also said the Lake Region Economic Bloc will use Deloitte East Africa as its transaction advisor as the date for launching the bank draws closer.
The bloc has been considering purchasing an existing bank to establish an investment bank which will spearhead development funding in the region.
“We have already had discussions with the controller of [the] budget, Auditor General, CBK and the Treasury so that they are aware of what we are doing,” he stated.
“Our people are unable to venture into business since they don’t have capital. The bank will give them loans at subsidized interest rates aimed at revamping the economy of the member counties,” he added.
Oparanya also said the bloc is committed to reviving the sugarcane, tea, and fish sectors by using the bank as a financier. In addition, the bloc will create an insurance company once the operations of the bank begin.
