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Law Capping interest rates
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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And my fixed depsit account must earn me minimum 7%pa (70% x 10.5) The bar to earn that interest will be raised to even ksh.100mn minimum. Anything below that uko pekee yako. But then why did KCB share price rally today Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 2/22/2009 Posts: 2,449 Location: Africa
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Thank goodness I disposed of my bank stocks. Shocking move indeed
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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The other headache is the implementation timeline and who will it affect. I foresee a situation where it will be for only new applicants and the old/existing applicants wakufee pekee yao. James Mwangi must be very furious now Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Impunity wrote:Swenani wrote:If the bank are going to lend at 14.5%(on reducing balance), then saccos should lend at 5%(on principal) for sacco borrowing/lending to make any economic sense. And my fixed depsit account must earn me minimum 7%pa (70% x 10.5) The Kenyan banks have found themselves between a rock and a hard-hot place. If they cant lend me at 14% then they must pay at rate that is half the bank rate...7%.  what has been the rate paid by your bank on your fixed deposit account? If you are not getting 10%, there must be something fundamentally wrong with you. If Obiero did it, Who Am I?
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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Users browsing this topicAngelica _ann, ARAP CHARLES, Ericsson, Fyatu, Gatheuzi, Guest (53), KulaRaha, Lek, marko, Matoe, moneydust, Much Know, penkon, Pure millioneare(PM), researchfirst, Shak, Swenani Dumb money becomes dumb only when it listens to smart money
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Rank: Member Joined: 9/11/2015 Posts: 244 Location: Thika
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This is how I expect the situation to unfold. 1. Equity, Family Bank, Co-op etc, who largely cater for Wanjiku will be the worst affected because they are technically in a riskier business. The quality of their customers is very bad i.e largely Wanjiku. 2. KCB, I&M, DTB etc that cater for the upper middle class and the affluent (for KCB it is institutions), they will be better positioned because their customers have a higher value and less risk. Assuming two banks lend at 14.5%, Equity and I & M, I & M will have less to worry about considering the nature of its customers. This bill is a kick in the nuts of James Mwangi and Gideon Muriuki Since men have learned to shoot without missing, I have learned to fly without perching
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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@David Ndii na hizo pessimism zake hazituletee! This afternoon most of us are feeling high after hallucinations of interest caps. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Member Joined: 1/31/2007 Posts: 303
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Godspeed Mr Kibaki we shall truly remember your reign,when the NSE churned out millionaires,nowadays its just poverty and doom that reigns.
It is now worse than a fish market..kila siku ni chini kwa chini aaargh..
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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moneydust wrote:Godspeed Mr Kibaki we shall truly remember your reign,when the NSE churned out millionaires,nowadays its just poverty and doom that reigns.
It is now worse than a fish market..kila siku ni chini kwa chini aaargh.. How are you Mr. James Mwangi? If Obiero did it, Who Am I?
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Rank: Elder Joined: 9/15/2006 Posts: 3,905
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Assenting to the Banking (Amendment) Bill, 2015 at State House. 
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Rank: Member Joined: 9/11/2015 Posts: 244 Location: Thika
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Spikes wrote:@David Ndii na hizo pessimism zake hazituletee! This afternoon most of us are feeling high after hallucinations of interest caps. Long live PORK. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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FRM2011 wrote:newfarer wrote: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. Some guys woke up as billionaires and they will be going back to bed as millionaires. JM, Gideon Muriuki.
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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moneydust wrote:Godspeed Mr Kibaki we shall truly remember your reign,when the NSE churned out millionaires,nowadays its just poverty and doom that reigns.
It is now worse than a fish market..kila siku ni chini kwa chini aaargh.. learn to adapt  all reigns churn out millionaires
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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moneydust wrote:Godspeed Mr Kibaki we shall truly remember your reign,when the NSE churned out millionaires,nowadays its just poverty and doom that reigns.
It is now worse than a fish market..kila siku ni chini kwa chini aaargh..
Hahahaha..... Na mambo bado
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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sitaki.kujulikana wrote:moneydust wrote:Godspeed Mr Kibaki we shall truly remember your reign,when the NSE churned out millionaires,nowadays its just poverty and doom that reigns.
It is now worse than a fish market..kila siku ni chini kwa chini aaargh.. learn to adapt all reigns churn out millionaires Word possunt quia posse videntur
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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FRM2011 wrote:FRM2011 wrote:newfarer wrote: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. Some guys woke up as billionaires and they will be going back to bed as millionaires. JM, Gideon Muriuki. What do you mean if that is the deposit rate. What is being capped is the lending rate right? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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mkate_nusu wrote:moneydust wrote:wukan wrote:I kept wondering what would trigger the NSE-20 to complete wave C to sub 3000 levels. Enjoy the wild ride down KIMEUMANA SASA....MR BEAR FEEL FREE AT HOME. VAPORIZE EVERYTHING IN YOUR PATH DONT SPARE NOTHING.. Wacha nijishikie tupopcorns sasa.. The BEAR loves such news to propel it further into the woods. Sit tight folks BLOOD....MORE BLOOD....  Dumb money becomes dumb only when it listens to smart money
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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 If Obiero did it, Who Am I?
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