This has nothing to do with Baba!!!

Anyone who has some average education knows that signing this bill would be a disaster!

Most economists are unanimous, the unintended consequence of the bill would be to deny credit for high risk borrowers.

But none of them is telling us what will happen when our savings accounts start earning 7% interest minimum. Will the banks return our savings by force. How will they cherry-pick depositors?

Been checking the figures and each of the top 5 banks would see their profits decline by at least 10bn from the interest expense alone. If they dare touch the interest income, they would be in loss-making territory.

Disclaimer, I sold my coop shares a few weeks ago, and I hope somehow this bill can pass. Power to Duale and Midiwo.

I am still failing to see the supernormal profits. If a bank is able to attract deposits at a growth rate of 15% -30% every year and convert these in loans to the tune of 80% then go ahead and retain 60% of the profits after tax to lend out, shouldn't the profit growth also be 15% -30%?
If fast growth = supernormal profits then please please put a price cap on Safaricom mpesa charges, data and voice calls coz this company is growing faster than any bank despite its huge spending

@maichblack my exact thinking. No one is addressing why they shouldn't up interest on deposits.

These politicians are just after safeguarding their future after election which is near.If this bill pass,it will be the end of banking sector in kenya.A look at NSE listed firms tells reality.Outside the banking segment,you will only find about six to seven other companies with healthy books.Most sectors In NSE are zombies.Talk of sameer,olympia,eaagads,car and general,marshal,tcl,homeafrica.These are dead companies.So the mps want to kill the banking sector and then revive this? mumias,kq na eaep imewashinda,shindwe kabisa! these guys do not deserve re-election.Who misled Rao to accept this nonsense?
Please like minded kenyans,next year do me a favour of sending this guys home.

If Uhuru signs the Bill this will be hat-trick against his own interests. From an economic perspective (inflation, capital flight, contracted lending etc), a business perspective (CBA) and political perspective (due to economic trouble, loss of credibility among the business class, political donations, RAO already pushing for it etc)

I actually want him to sign it, the same way I want Americans to elect Trump and how I wanted Britons to vote for Brexit. These are real life experiences on the effects negative or otherwise of populist policy.

Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law

They are really terrified. See some numbers below.

Should the bill become law, this is the change in interest expense for the top five.

KCB rise from 17bn to 29bn
Equity rise from 6.8b to 21b
Co-op from 12.1b to 18.5b
Barclays from 4.2b to 11.4b
Stanchart from 3.9b to 12b.

Co-op with an average deposit rate of 5.5% would be the least hit. But I saw something in their books that must be terrifying them.

You have heard that threat about not lending to high risk borrowers like unsecured personal loans. Their loan book is composed of 35% unsecured personal loans. It earns them the highest interest income. Should they even slow down lending to that category, let alone stop, they would be in loss making territory right away.

For equity bank, let's just say James Mwangi and co. would no longer be billionaires.

Then at that point our @midiwo and @duale will ammend the law again to ensure those ridicullous requirements are declared null and void...you cant beat the gaaament!

No one in Kenya should claim to understand how economics works, the entire financial system is a mess thanks to these quack economists.