Bungoma County has been rated as one of the credit worthy Counties with high scores in the Global Credit Rating (GCR) putting them in good state to borrow locally and externally.
The County received BBB- ratings for long term loans and a much stronger A3 rating for short term loans, meaning they are stable enough to repay loans.
This is the second time Bungoma has been placed with the good ratings since the inception of the credit ratings meaning they have maintained good financial stability to meet their financial commitments.
Speaking during the second release of the credit worthiness scores in Nairobi, Bungoma Governor Ken Lusaka said the credit rating enhances Counties’ competitiveness in the debt market, and access 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.
Other Counties that were rated as credit worthy include Makueni, Mombasa, Laikipia and Nyandarua.
With this rating, the rated Counties are well endeared to would-be creditors even as devolved units of government seek new sources of funding away from traditional national government allocation, scanty local revenue, and donor funding.
The County Creditworthiness Initiative (CCI) was conceived to coordinate and integrate existing efforts, instruments, knowledge, and resources from partners and stakeholders by identifying the most effective financing solutions and implementation arrangements for County Governments in Kenya.
CRA 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,” said Katule
He further said CRA seeks to oversee a sustainable County Governments borrowing and ensure a capital market that is ready for County Government borrowing.
Present during the meeting included; CRA Chief Executive Officer (CEO) James Katule COG chair for Finance committee Fernandez Barasa , Maukeni Governor Mutula Kilonzo Junior among others.