In 2020, Kingdom Bank received a KSh 20 billion loan facility from the Central Bank of Kenya (CBK). The exact amount of 20,960,000,000 was advanced as a zero-interest loan in accordance with the CBK statutory mandate as regulator. Kingdom Bank started the (7) repayment in 2023, paying Ksh 2,994,285.715 every year.

Just as CBK created the credit product for Kingdom Bank, CBK can create financial products that enhance the productivity of land and human resources, to facilitate the realization of Kenyan constitutional rights.

The Constitution of Kenya 2010, in article 231, established CBK as a state body, as recorded in article 231 (1) that reads, “231. (1) There is established the Central Bank of Kenya.”

Ndara B Community & Diaspora Kenyans erect a signboard at Voi - Mwatate highway 2021,

One of the roles of CBK is to advance money to meet constitutional rights in accordance with the Constitution of Kenya, Article 231 (2), “The Central Bank of Kenya shall be responsible for formulating monetary policy, promoting price stability, issuing currency and performing other functions conferred on it by an Act of Parliament.”

Constitution of Kenya article 21 reads, “(1) It is a fundamental duty of the State and every State organ to observe, respect, protect, promote and fulfill the rights and fundamental freedoms in the Bill of Rights. (2) The State shall take legislative, policy and other measures, including the setting of standards, to achieve the progressive realisation of the rights guaranteed under Article 43.”

The Bank Asset-to-Population ratio is an indicator of the role of banks in facilitating the provision of food, housing, healthcare, and other basic necessities.

Many Communities in Kenya languish in poverty despite having the key resources of production, land, and human resources. A financial product that can make land and human resources productive is needed.

CBK has a constitutional mandate to create a financial product that promotes and fulfills environmental, economic, social, and children's rights, as provided in articles 42, 43, and 53 of the Constitution of Kenya. A product of a minimum of Ksh 1 billion to a maximum of Ksh 20 billion at an interest rate of, say, 5%, can be created to advance the rights of communities and Kenyans through big projects. The money can be advanced through commercial banks.

EXAMPLE BASED ON DIASPORA UNIVERSITY TOWN (DUT) PROJECT.

The Diaspora University Development Plan, covering 1,500 acres, and the Ndara B Development Plan, covering 4,000 acres, are two plans that can tap this money through a Ksh 2 billion loan.

Diaspora University Town (DUT) 1,500 Acres Plan

The 1,500 acres that achieve environmental, economic, social, and children's rights for 25,000 Kenyans, while growing Kenya's GDP by Ksh 15 billion through the creation of 15,000 jobs.

Ndara B Development Plan on 4,000 acres.

The 4,000-acre plan advances environmental, economic, social, and children's rights by creating 5,000 jobs and producing housing, building materials, agricultural products, and water.

The Results after application of the Ksh 2 billion to the DUT and Ndara B Plans.

  1. The Ksh 2 billion and interest of about Ksh 600 million would be repaid.
  2. Ksh 20 billion Gross Domestic Product (GDP) achieved.
  3. 20,000 Jobs Created (DUT Plan 15,000 and Ndara B Plan, 5,000). The jobs would meet workers' rights to food, housing, healthcare, clean water, and other rights for workers and their families.
  4. 25,000 Residents Town with a clean, sustainable environment achieved.
  5. Growth of banking sector assets by Ksh 70 billion as Mortgages & MSME Assets Finance are issued through Commercial banking sector products.

(Dan Kamau, the writer, is the creator of the DUT Master Development Plan Email dan@dut.or.ke)