Bungoma County scores highly in credit rating

By Peter Ochieng

The county government of Bungoma has been rated highly among credit worthy counties.

The devolved unit attained high scores in the Global Credit Rating (GCR), putting her in good state to borrow internally and externally.

Bungoma received good ratings for long term loans and a much stronger A3 rating for short term loans, meaning the county is stable enough to repay loans.

Speaking during the second release of the credit worthiness scores at a hotel in Nairobi, Bungoma governor Ken Lusaka said the credit rating enhances counties' competitiveness in the debt market and access to finances to better lives of people.

''This is a superb initiative that helps answer tough credit questions. The rating will do the talking as counties seek ways to diversify revenue collection in the wake of delayed national government releases ,'' Lusaka said, as quoted by his press unit.

Makueni, Laikipia, Mombasa and Nyandarua were the other counties rated as credit worth.

The rated counties are well endeared to would-be creditors, as devolved unit seek for new sources of funding away from the traditional national government allocation, local revenue and donor funding.

Commission for Revenue Allocation Chief Executive Officer (CEO) James Katule, said the initiative is spearheaded by CRA in partnership with the world bank and seeks to obtain a deeper understanding of elements that impede County Governments borrowing and propose solutions and implementation.

“It aims to strengthen regulatory framework for County Government borrowing, a reformed fiscal decentralization typology that supports responsible borrowing regulated by market discipline,” added the CEO.

In addition, he said CRA seeks to oversee sustainable county governments' borrowing.