President Uhuru Kenyatta has directed the Devolution ministry to finalise a policy on the formation of regional blocs, in his latest endorsement of the county forums.
Speaking at the inaugural Lake Region Economic Bloc (LREB) investment conference on Monday, the president noted that county blocs are emerging as one of the key pillars for alternative dispute resolution, national harmony and economic growth, so they must be supported.
In LREB’s case, for example, 14 counties in western region agreed in March to unite to expand their market and support smallholder enterprises through cheaper credit.
But the bank they agreed to form has been faced with challenges as county assemblies declined to endorse the formal entry of members.
So far, only Kisumu, Kisii and Kakamega have ratified the entry into LREB.
On Monday, the president said that blocs, while important, require national policy guidance.
“It is important, as we go forward, to provide clear guidelines, a robust policy, legal and institutional frameworks for regional county integration; as well as form and operationalise county regional blocs that are able to support and deliver upon the regional integration goals, objectives and outcomes.”
He added: “It is imperative that the national government provides the legal foundation to optimise the management and utilisation of shared cross-boundary economic resources and infrastructure; shield county regional blocs from personal and political interference; establish dispute settlement mechanisms at the inter-county and county regional bloc levels, and most importantly, provide an interface for the basin-based Regional Development Authorities to support and complement the efforts of the county regional economic blocs.”
President Kenyatta’s call means the formation of the six regional economic blocs around the country could get the legal backing that had been missing.
The 47 counties have created blocs such as the LREB, North Rift Economic Bloc, the Frontier Counties Development Council, the South East Kenya Economic Bloc, the Jumuiya ya Kaunti za Pwani and the Mt Kenya and Aberdare Economic Bloc.
Lack of a law, however, means financing, participation, focus and duration depends on trust among members.
Uhuru orders policy on regional blocs in latest endorsement: The president notes that blocs are key to national harmony and economic growth. https://t.co/frfaViIUNE
— Breaking News (@News_Kenya) October 22, 2018