Governor Oparanya defends creation of regional trade blocs

Kakamega Governor Wycliffe Oparanya has defended a proposal to create regional economic blocs. The governor argues that this will help smaller economies remain viable, under a specified legal structure.
Mr Oparanya says that many counties collect very little in local revenues and must be helped by lamping counties together.

Yet there is no law on how to go about it, many of the counties are joining hands voluntarily.

“We have created these economic blocs to help counties remain viable. But I can pull out of the Lake region bloc, if I want. But if there is a legal framework, then it binds us together,” he said in reference to the recent Lake Region Economic bloc formed last month. Mr Oparanya was elected chairman of the bloc that includes 14 counties in western Kenya.

SH200 MILLION

Each of the 14 counties will be required to pump in Sh200 million to create a local development bank to offer cheaper loans to local entrepreneurs.

But realising this dream may be difficult. Last week, Homa Bay Ward Reps rejected the proposal, arguing the Sh200 million for the bank was not a priority.

In addition, some counties may not raise the money, most of them having missed their revenue targets. In Vihiga County, for instance, local revenues for last year were less than Sh100 million.

On Wednesday, opposition leader Raila Odinga had lauded the creation of economic blocs. He proposed that some of the problems on viability could be addressed by creating a third layer of governance between counties and the national government.

BOMAS DRAFT

“The Bomas Draft Constitution divided Kenya into 14 regions, each made up of several districts. The intention was to create units with the size and population that made them economically viable. It is time to look at how to recover this original spirit.

“My proposal is that we adopt a three-tier system that retains the current counties, creates regional governments and retains the National Government and with very clear formula for revenue sharing,” Mr Odinga said.

REJECTED

That proposal was on Thursday rejected by Deputy President William Ruto who accused proponents of the change as idle people who were blaming tools for their own failure to use them.

"If there is going to be a suggestion on arranging or rearranging of devolution, it cannot be creating another layer of government. It will be taking counties to the walls,” Mr Ruto said.

“It cannot be devolution upwards. It should be devolution downwards. That is where devolution needs to go… we don't have to change the Constitution to achieve that," he added.