Controller is delaying bank, say governors
Kisumu County Governor Jack Ranguma (right) and Kisumu County Commissioner Erastus Ekidor during the 2014 Mashujaa Day celebrations on October 20, 2014. A planned homecoming party for Governor Ranguma has split leaders in Kisumu. PHOTO | TOM OTIENO |
What you need to know:
- The governor said that the failure by the controller to approve county budgets had affected development plans.
- According to the proposal, each county would contribute Sh100 million for the project.
Governors are blaming the Controller of Budget for delaying the setting up of a Sh1.1 billion regional bank.
Kisumu Governor Jack Ranguma said 10 counties in western Kenya made the proposal six months ago but no progress has been made.
He said Budget Controller Agnes Odhiambo has not approved the counties’ budgets. The governor said Kisumu, Siaya, Homa Bay, Kisii, Nyamira, Migori, Bungoma, Kakamega, Vihiga and Busia back the project.
Mr Ranguma is the chairman of the committee pushing for the bank. He said that Bomet, Nandi and Kericho counties are also interested.
The governor said that the failure by the controller to approve county budgets had affected development plans.
“Our key aim is set up a regional investment bank to lend money to counties, attract deposits from the diaspora, ease loan access and curb exploitation by commercial banks,” he said.
A CLEAR ROAD MAP
Mr Ranguma spoke to the Nation during the launch of Kisumu Urban Project Development plan on Monday.
According to the proposal, each county would contribute Sh100 million for the project.
However, most of the counties have been unable to contribute because of the delay in budget approval.
Mr Ranguma said that governors have sought the advice of audit firm Deloitte and Touche.
The firm, he said, gave them two options: to buy an existing bank, design it and give it a common name or start a new bank.
Mr Ranguma expressed optimism, saying they would have a clear road map before the end of the year.
