In all truth if the books are uncooked ...then KCB has the right to be worth a lot more , i fear serious defaults across the board and bad loans ... i hope not but the fundamentals of the economy are shaky...I just hope KCB hits 40

Not saying i know anything in particular... looking at Kenya from the outset though lots is wrong with our economy . 1. were a net importer i.e negative balance of payments which means were dependent on goods from outside our borders. 2. Too much red tape and harassment is hindering ease of business. 3. All backbone sectors of our economy are hurting from huge intrests , painful wage bills , silly electric bills how will businesses survive ? In the west banks offer loans at rates of as low as 4 % PA in Kenya we pay 20 + %. How many businesses can pay banks 20% PA + 30% Tax + 16% VAT + Overheads...and then give its sharholders a profit... people have borrowed super amounts from banks against property for building and oversupply in the real estate market is around the corner. Car dealers cannot sell cars, coast hotels are empty because of low tourist numbers layoffs in companies needing to cut to stay alive example KQ and KK ...once a domino effect starts what do you think will happen. who will pay off the loans ...who will buy all the assets held in receivership ??? Hope this scenario never happens in Kenya but its a possibility...controls needed are ,drops in interest ra

The CBK needs to reduce rates in order to cushion banks from inevitable defaults at the current rates and inflation will have to be controlled by fiscal rather than monetary measures

Last year I quipped:

Even with that almost free money, their economies have been shrinking last 4 years to date and still room for more shrinkage. What does that tell us? (People are reluctant to risk/invest in the fundamentally busted REAL economy). Try offering Kenyans that 4% and watch the economy over-heat pronto!