Uasin Gishu County Governor Jackson Mandago has revealed plans of starting a county financial institution if banks do not lower their interest rates on loans.
He said some banks charge as much as 25 percent interest on loans, making it hard for poor people to seek for funds in banks.
"I will put a capital of Sh1.5 million to start a bank which will charge an interest of 5 percent to counter financial institutions that charges high interest," he said at the county headquarters.
He spoke as he gave out chicks to women groups in Eldoret town, reminding residents of the expansive county that they should not shy from seeking for funding to start business ventures.
"It's sad that despite banks making huge profits, they still charge high interests, how will people develop with such high charges?" he asked.
He urged Kenyans to join cooperatives since it's an easy way to get loans with minimal paper work.
Kenya's informal sector according to the Central Bank has not grown to the expected level because majority of Kenyans fear borrowing cash from financial institution arguing that they charge exorbitant interest rates.