Governors from the Lake Region Economic Bloc (LREB) are calling for the revival of the regional bank initiative, initially projected to cost Sh2.8 billion.

Led by the bloc’s chair and Kisumu Governor Prof Anyang Nyong’o, the governors emphasised that reviving the bank would allow the region to leverage its economies of scale.

“This will improve our financial access and foster faster regional economic growth,’’ they observed. The governors believe the bank will play a critical role in boosting regional development and providing financial solutions tailored to the needs of the region.

Revival of the bank is one of the key messages the governors presented to the national government in the just-concluded Nyanza International Investment Conference. The governors were Ochillo Ayacko (Migori), Ken Lusaka, (Bungoma), Paul Otuoma (Busia), Gladys Wanga, James Orengo, Wilbeforce Ottichilo.

Deputy President Prof Kithure Kindiki officially opened the 2025 Nyanza International Investment Conference (NIIC) on behalf of President William Samoei Ruto. Nyongo’ urged the DP to help fast-track the revival of the regional bank, an idea that flopped five years ago.

Speaking on behalf of the governors, Nyong’o said with the bank’s potential to harness the region’s economies of scale, its establishment is significant. “The proposed LREB bank would enhance financial services and support regional development,’’ Nyong’o told Kindiki.

He revealed that the initial proposal to establish a Sh2.8 billion regional bank did not materialise due to the National Treasury’s refusal to approve the plan.

The proposed bank was intended to provide financial services tailored to the unique needs of the member counties, focusing on facilitating regional development, supporting small and medium enterprises (SMEs), and improving access to credit for local businesses.

The bank was also envisioned as a tool to boost economic integration within the region, offer affordable financing options for key development projects, and promote economic stability across the bloc.

Despite the setback, Nyong’o emphasised that the LREB would continue to explore alternative avenues for economic growth and regional development, working closely with the national government and other stakeholders.

He called for Kindiki’s support in ensuring the initiative comes to fruition quickly to allow them formalise cross border financial policies that fuse them at LREB Kindiki promised to act on the petition, acknowledging the crucial role that regional blocs play in accelerating rural development. He praised the efforts being made by the Lake region economic bloc and expressed commitment to supporting the revival of the regional bank, recognizing its potential to drive economic growth and improve financial accessibility in the region.

Kindiki also assured the governors that the government would prioritise the initiative to ensure its swift implementation. He called on the LREB member counties to strategically harness their collective economic strengths and vast untapped potential to accelerate regional development.

Economies of scale
The DP emphasised the importance of leveraging economies of scale, allowing the counties to pool resources, reduce costs, and increase efficiencies in various sectors such as agriculture, infrastructure, and industrialization. “We want you to combine efforts to benefit from a more robust and competitive economy, attracting investments and creating job opportunities for residents,’’ Kindiki said.

He reassured the LREB member counties that the national government is committed to providing the necessary support and resources to ensure their economic growth and development.

“The national government is focused on fostering an environment where local governments and regional bodies can thrive, with an emphasis on collaboration, innovation, and sustainable economic practices,” Kindiki stated.

This, he stated, would create a foundation for long-term prosperity for the people of the LREB region, asking them to think of how their unity can help promote inter counties trade
The DP urged the counties to prioritise the utilisation of their natural resources, regional economic and diverse food production advantages, and specialised industries to accelerate economic growth.

He stressed the importance of strategic planning and investment in key sectors such as tourism, education, agriculture, and healthcare, which could not only boost the local economy but also enhance the living standards of their populations.

Regional blocs play a crucial role in accelerating economic growth by fostering cooperation among member countries or counties and so LREB needs to effectively utilise its potential. They enable the pooling of resources, knowledge, and expertise, which boosts economic efficiencies, reduces costs, and enhances competitiveness.

Kindiki noted that combining markets, regional blocs creates larger, more attractive consumer bases for businesses, encouraging trade and investment. These blocs also help streamline infrastructure development, improve trade facilitation, and harmonise policies, which can create a more stable and predictable business environment.

As a result, they become more appealing to foreign investors, offering access to a broader market, reduced risks, and improved economies of scale. This, in turn, boosts foreign direct investments (FDI), creating job opportunities, supporting technology transfer, and fostering long-term economic growth for the entire region.

Kindiki told the investment forum that for regional development to be successful, there must be a collective effort, with all counties working together and using their unique assets to the fullest.

The national government, he assured, would continue to play an instrumental role in supporting their initiatives through funding, policy backing, and ensuring that the necessary infrastructure is in place for sustainable growth.
Consequently, he urged county leaders to embrace collaboration and innovation, with a focus on improving the quality of life for their citizens and achieving shared economic success across the region.