Counties to form economic blocs to trade, use of local resources

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All counties seeking to trade together through an economic bloc will need to have deeds encouraging intra-regional trade, prioritize the use of local resources under a legal framework without competing among themselves but instead expand free trade and develop their resources.

Counties have, in the past seven years, formed blocs due to similarities such as historical, political, and economical but without any legal backing. Now the Bill, which was published by the Kisumu Senator Rose Nyamunga, will need the economic bloc to have the form of a written agreement.

“County governments may enter into an agreement for the establishment of an economic bloc they have a shared geographical region and for the enhancement of trade and economic development,” County Resource Development Bill, 2020 states.

Every county will need to carry out a formal assessment of resources in their respective territories and include them in the joined development plans.

The bloc was mainly formed to spur economic growth within regions through a harmonized policy and resource mobilization. “A regional economic bloc shall have as its objects the diversification and facilitation of trade and production of goods and services amongst member counties, the simplification and standard of trade information between the member counties and the promotion of competition and market efficiency,” the Bill states.

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