Isnt that hearsay?? Will there be any new loans going bad??

The main reason for the rights issue was,to improve the ratio of total capital to total risk weighted assets.This was to meet the cbk minimum requirements as kcb ratio were thinning.
This has been met with
1.HY 2016 improved earnings
2.Cash saved from scrip shares issued instead of cash dividends.
So there is no need for rights issue now.I agree with the management on this.

There are interests from international financiers wiling to lend the company kshs 20 bilion.Oigara has not said what the money will be used for.Based on the earlier plans,the money could be used for:
1.Acquisition of chase bank
2.Entry into mozambique,Somalia and Ethiopia.
This is a right direction and therefore there is no cause of alarm.

Does this mean we shall go back to KES 60

Plus the interest rate capping law uncertainty. Management did great!!!

HY 16 indicates total debt of the company stands at kshs 26,662,270,000.
Shareholders equity stands at kshs 90,955,968,000.
These represents a debt to equity ratio of 29%.
To me this is very healthy.
The management has decided to get another debt of kshs 20 bilion by end of next month.That will make the total debt to rise to kshs 46,662,270,000.
At the current shareholders equity,that will represents a 51% debt to equity ratio.But definitely according to the profit margins,i expect the shareholders equity to increase.This will mean a lower debt to equity ratio.
Since HY results were announced,there have been alot of worries and fear among wazuans.Based on the results alone,these are misguided fears.Maybe if there are other things beyond HY results which we dont know.Let those with the information share with us.
For example,we know the source of kshs 8 billion NPLs from the current total of kshs 32 bilion.Measures are in place to recover them.Next financial year,will be kshs 24 bilion if things stand this way.
I will only treat the following as hearsay,innuendo,maniac,phobic and propaganda unless proved documentary:
1.Going to election year,kcb will be raided by politicians for campaign cash.Being 24% owned by Gok,gives room for phobia.
2.The kshs 32 bilion npls,is as a result of arap samoei weekly harambees where he gives millions in donations.With Ngeny Biwott as board chair,this gives room for mania.
3.The 50/50 power sharing between Tna and urp is reflected in the board chair,Ngeny Biwott and chief financial officer Lawrence Kimathi.This gives room for propaganda.
We need to differentiate facts based on evidence and street talks.