Makueni gets World Bank nod on Credit Worthiness

Makueni county has been given a through pass by the World Bank on credit worthiness through a rating survey conducted by Global Credit Rating Agency, under the County Credit-Worthiness Initiative.

The County Credit Worthiness Initiative is a collaboration between the National Treasury, Commission on Revenue Allocation, Capital Markets Authority and County Governments Supported by the World Bank Group.

The initiative aims at building the capacity of county governments to access long-term development financing from the capital markets to fund capital intensive infrastructure growth, which would otherwise have take years to achieve through the equitable revenue share financing.

Makueni alongside Bungoma and Kisumu were chosen for piloting of this initiative after agreeing to institute strengthened financial management systems, fiscal structures that support responsible borrowing and institutionalized framework that can oversee sustainable county government borrowing.

The three had their Credit Ratings unveiled in public by CRA on Wednesday in Nairobi, in an event attended by respective governors; Kivutha Kibwana, Wycliffe Wangamati, Anyang’ Nyong’o and Officials from World Bank, National Treasury and CMA.

By Financial Year 2020/2021, the counties will be able to access credit financing from the capital markets through County bonds, Infrastructure bonds, Corporate bonds or securitization of receivables such as own source revenue.

Some of the Key funding sources for this financing plan include pension schemes, insurance companies, SACCOs, diaspora and Collective Investment Schemes.