@guru,i have never seen any positive talk from this dude,always grimacing, frowning, complaining & spewing negativity.
In this year of jublilee,he & others still stuck in the school of negativity aka school of half empty will for sure miss the bus if they don't "get saved"

#makingmoney2013

GoK reminds me of those friends who come asking you for a loan because they are expecting a salary increase or annual bonus. I don't see KRA meeting that target of 880 billion and GoK will continue borrowing at high interest to meet recurrent expenditures. The target should have been to cut the wage bill and the deficit or present budget projections for the coming years showing how the deficit will be reduced. Inflating your expected revenue by raising KRA targets will not cut deficit. The rates cut will only fuel imports and speculation on plots. I have not seen any appetite among the listed companies to raise capital this year and the companies are more thinking of regional expansion instead of re-investing in Kenya. I continue to stay in the money market and bonds for now

The CBR rate cut is a positive move in boosting economic growth in the country.
Banks should also follow suit and reduce the interest rates to individuals coz of the following;
Banks cannot only make money by loaning to the government;they also need individuals and private sector.
Banks will make more money by loaning to individuals and private sector
With increased private sector credit industries will expand and create more jobs.
More jobs means more deposits for banks and a wider base for banks to advance loans.
There will also be a boom in equities
Mass campaign to encourage kenyans to buy boods made in kenya by kenyans.

Overall economic growth above 5%

Where is a copy of the MPC statement? ... cant get it on CBK website

indeed odd. ... ama the chap responsible for the cbk website is dozing. I see the already held mpc meeting is still listed as upcoming event

Haya basi.

Cheers!

Equity Bank, CFC lead the way in cutting cost of loans

http://www.businessdailyafrica....84/-/y9xpkb/-/index.html

Equity Bank, Kenya’s biggest lender by customer numbers, reduced its effective cost of loans by five percentage points to 20 per cent while CFC Stanbic Bank cut its base lending rate to 16 per cent from 17 per cent.

Effective lending rates are ordinarily higher than base rates because they reflect the true cost of loans which includes a premium that is set depending on a customer’s repayment risk profile.

“We have reduced our base lending rate from 19 per cent to 17 per cent consequently the effective interest rate on your facility will be as follows; current effective interest rate 25 per cent; new effective interest rate 20 per cent starting from May 1.” read part of a letter sent to an Equity Bank customer.

The Equity Bank letter seen by the Business Daily indicates the lender has reduced its interest rates depending on the type and amount of loan. Those servicing development loans are the biggest beneficiaries with a seven percentage points reduction.

The effective cost of development loans is 18 per cent from 25 per cent and business loans over Sh10 million is 18 per cent and those below will cost 20 per cent.

Waiting!