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Law Capping interest rates
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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newfarer wrote:guru267 wrote:So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky!
Interesting times indeed., Blackmail won't work. It is the law . He will have to pay 7% to wanjiku He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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guru267 wrote:newfarer wrote:guru267 wrote:So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky!
Interesting times indeed., Blackmail won't work. It is the law . He will have to pay 7% to wanjiku He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 2/20/2007 Posts: 767
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Pesa Nane wrote:tom_boy wrote:murchr wrote:Impunity wrote:kawi254 wrote:Does this also affect mobile banking loans e.g Equitel (24%p.a), M-shwari and such? M-suruari is 90%pa...7.5&% pm. No @muchr, please clarify. Does the new act differentiate between normal loan and mobile loan. The bill addressed BANKS and FINANCIAL INSTITUTIONS only. If the loan is from a BANK expect it to be capped. Your accessing the money through mobile, TT, Cheque, SWIFT, cash, etc should be immaterial. That was my reading of the act. Fafanua Muchr, hii mobile loan haitoki kwa bank ! They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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tom_boy wrote:Pesa Nane wrote:tom_boy wrote:murchr wrote:Impunity wrote:kawi254 wrote:Does this also affect mobile banking loans e.g Equitel (24%p.a), M-shwari and such? M-suruari is 90%pa...7.5&% pm. No @muchr, please clarify. Does the new act differentiate between normal loan and mobile loan. The bill addressed BANKS and FINANCIAL INSTITUTIONS only. If the loan is from a BANK expect it to be capped. Your accessing the money through mobile, TT, Cheque, SWIFT, cash, etc should be immaterial. That was my reading of the act. Fafanua Muchr, hii mobile loan haitoki kwa bank ! Mobile is just the delivery platform. Loan is from Bank!!!!! Cap it all!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: New-farer Joined: 6/13/2016 Posts: 47 Location: kenya
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Won't the banks find a way round this. For example, increase fees. Like if you want to borrow a million, they say there is an "application fee" of 10,000, a monthly payment processing fee of 5,000, branch visit fee, tech fee, . e.t.c..
We were told free primary education was "free", but many other little fees cropped up all over the place.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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obiero wrote:guru267 wrote:newfarer wrote:guru267 wrote:So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky!
Interesting times indeed., Blackmail won't work. It is the law . He will have to pay 7% to wanjiku He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum Good for them... Too bad that portion is a minority... The majority will be at 0% on deposits and will then be shafted by increased transaction fees.. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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guru267 wrote:obiero wrote:guru267 wrote:newfarer wrote:guru267 wrote:So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky!
Interesting times indeed., Blackmail won't work. It is the law . He will have to pay 7% to wanjiku He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum Good for them... Too bad that portion is a minority... The majority will be at 0% on deposits and will then be shafted by increased transaction fees.. Then the transaction fee will become the next battlefront. Banks can run but they can't hide. The law does not set a minimum deposit limit for interest bearing thus the minimum is presumed to be Ksh.1.bytheway with the heat on banks it would be insane to set the 1 million minimum. They will just be vindicating the president and mps punda amecheka
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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alotoftalk wrote: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. This year already looks like one for the records. Everything that you think is unimaginable will happen. Brexit,interest rate cap, even KQ became entered the matatu industry...next it's Trump Investment philosophy development in progress...
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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Bankers and people who have bank shares should just stop lying to people on this forum and in their lives. We told you Uhuru had to sign or go home. You kept on talking about Wanjiku suffering etc. You are still talking about Wanjiku suffering. Listen carefully. Those shylocking tabias just died. Including that msuruari thing. If you make it harder for potential customers to borrow from you, life for you shall go the Ekuete vs Barclays way....There shall be another alternative soon and you too shall die. Hii dunia sio ya Kenyan banks na Wanjiku sio mama yake. If they increase those rates, I'm sure another law shall be created just for that. Lakini shylocking in the name of lending just had to go....Now this masurauri thing, cofek should take to court kesho. You can already see they want to pretend the money is not from financial institution....Kweli CBA ni burukenge? Thieves are not good people. Tumeelewana?
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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alma1 wrote:Bankers and people who have bank shares should just stop lying to people on this forum and in their lives.
We told you Uhuru had to sign or go home.
You kept on talking about Wanjiku suffering etc.
You are still talking about Wanjiku suffering.
Listen carefully.
Those shylocking tabias just died. Including that msuruari thing.
If you make it harder for potential customers to borrow from you, life for you shall go the Ekuete vs Barclays way....There shall be another alternative soon and you too shall die.
Hii dunia sio ya Kenyan banks na Wanjiku sio mama yake.
If they increase those rates, I'm sure another law shall be created just for that.
Lakini shylocking in the name of lending just had to go....Now this masurauri thing, cofek should take to court kesho.
You can already see they want to pretend the money is not from financial institution....Kweli CBA ni burukenge? This hurts very few players in the industry. Wanjiku won't feel the pain now but will do when credit dries up and they'll be forced to go underground to borrow. And I as a shadow banker in an unregulated space will charge them a punitive rate since they have no where else to turn. What hurts banks more is the deposit rate peg rather than the interest rate cap. Small banks which are already paying higher rates while being viewed as more risky; will pay higher. This will kill all the small banks and open a new frontier of shadow banking (think credit only MFIs, online lenders etc) A new normal has arrived and we'll accept and move on. This has actually created a new opportunity for us the shadow banking entrepreneurs. All hail the chief! Investment philosophy development in progress...
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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A new battle front for deposits from Wanjiku by small lenders accepting interest bearing savings less than Kshs 100,000 shall emerge. Big sharks like Equity shall take the cue to avoid losing customers. A fierce competition to attract depositors is the way to go by lenders adding value to some of their products. Who will carry the burden of the cost associated with value addition? Obviously banks. Which means the industry leaders' profits likely to reduce to single digits accounting for a quarter of previous gains under draconian rules. More than 50% decline in financials' stock prices in the offing. A time to ambush! The shafter is now the shafted! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Spikes wrote:A new battle front for deposits from Wanjiku by small lenders accepting interest bearing savings less than Kshs 100,000 shall emerge. Big sharks like Equity shall take the cue to avoid losing customers. A fierce competition to attract depositors is the way to go by lenders adding value to some of their products. Who will carry the burden of the cost associated with value addition? Obviously banks. Which means the industry leaders' profits likely to reduce to single digits accounting for a quarter of previous gains under draconian rules.
More than 50% decline in financials' stock prices in the offing. A time to ambush!
The shafter is now the shafted!
Are you saying that you want to buy a stock you know is about to be battered "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: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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murchr wrote:Spikes wrote:A new battle front for deposits from Wanjiku by small lenders accepting interest bearing savings less than Kshs 100,000 shall emerge. Big sharks like Equity shall take the cue to avoid losing customers. A fierce competition to attract depositors is the way to go by lenders adding value to some of their products. Who will carry the burden of the cost associated with value addition? Obviously banks. Which means the industry leaders' profits likely to reduce to single digits accounting for a quarter of previous gains under draconian rules.
More than 50% decline in financials' stock prices in the offing. A time to ambush!
The shafter is now the shafted!
Are you saying that you want to buy a stock you know is about to be battered I'll buy after significant decline, terrible bloodbath in the streets! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Spikes wrote:murchr wrote:Spikes wrote:A new battle front for deposits from Wanjiku by small lenders accepting interest bearing savings less than Kshs 100,000 shall emerge. Big sharks like Equity shall take the cue to avoid losing customers. A fierce competition to attract depositors is the way to go by lenders adding value to some of their products. Who will carry the burden of the cost associated with value addition? Obviously banks. Which means the industry leaders' profits likely to reduce to single digits accounting for a quarter of previous gains under draconian rules.
More than 50% decline in financials' stock prices in the offing. A time to ambush!
The shafter is now the shafted!
Are you saying that you want to buy a stock you know is about to be battered I'll buy after significant decline, terrible bloodbath in the streets! And you'll buy because you believe banks will make money 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: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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murchr wrote:Spikes wrote:murchr wrote:Spikes wrote:A new battle front for deposits from Wanjiku by small lenders accepting interest bearing savings less than Kshs 100,000 shall emerge. Big sharks like Equity shall take the cue to avoid losing customers. A fierce competition to attract depositors is the way to go by lenders adding value to some of their products. Who will carry the burden of the cost associated with value addition? Obviously banks. Which means the industry leaders' profits likely to reduce to single digits accounting for a quarter of previous gains under draconian rules.
More than 50% decline in financials' stock prices in the offing. A time to ambush!
The shafter is now the shafted!
Are you saying that you want to buy a stock you know is about to be battered I'll buy after significant decline, terrible bloodbath in the streets! And you'll buy because you believe banks will make money right? Not really. Just to hold for speculation purposes in a short term basis. To invest in financials I must wait till the dust settles as from next year, 2017 Q1. I have to study this market prudently. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Spikes wrote:murchr wrote:Spikes wrote:murchr wrote:Spikes wrote:A new battle front for deposits from Wanjiku by small lenders accepting interest bearing savings less than Kshs 100,000 shall emerge. Big sharks like Equity shall take the cue to avoid losing customers. A fierce competition to attract depositors is the way to go by lenders adding value to some of their products. Who will carry the burden of the cost associated with value addition? Obviously banks. Which means the industry leaders' profits likely to reduce to single digits accounting for a quarter of previous gains under draconian rules.
More than 50% decline in financials' stock prices in the offing. A time to ambush!
The shafter is now the shafted!
Are you saying that you want to buy a stock you know is about to be battered I'll buy after significant decline, terrible bloodbath in the streets! And you'll buy because you believe banks will make money right? Not really. Just to hold for speculation purposes in a short term basis. To invest in financials I must wait till the dust settles as from next 2017 Q1. I have to study this market prudently. Banks are likely to remain profitable.. Reduced margins guaranteed but the stock prices are unlikely to retreat any further than currently trading
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Interesting discussion on NTVs am live ; State of the Economy possunt quia posse videntur
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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The mwananchi bank's are in real trouble. They have facilities called micro loans that are secured with household goods I.e. chattels mortgage.
Am looking at a letter of offer for 300,000 from coop bank.
Int rate : 2% pm flat
Nego fee : 2.5%
After adding insurance, guarantee and hypothecation fees, the APR is 45.2%.
You read that right. These pranksters have been shafting wanjiku in the name of availing credit to her.
Am told equity is much much worse. Will share once I see a sample offer letter.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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newfarer wrote:guru267 wrote:obiero wrote:guru267 wrote:newfarer wrote:guru267 wrote:So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky!
Interesting times indeed., Blackmail won't work. It is the law . He will have to pay 7% to wanjiku He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum Good for them... Too bad that portion is a minority... The majority will be at 0% on deposits and will then be shafted by increased transaction fees.. Then the transaction fee will become the next battlefront. Banks can run but they can't hide. The law does not set a minimum deposit limit for interest bearing thus the minimum is presumed to be Ksh.1.bytheway with the heat on banks it would be insane to set the 1 million minimum. They will just be vindicating the president and mps The banks will do what the banks in other countries did to get such laws reversed... Simply lock out Wanjiku.. Send her back to saving in the mattress to avoid high transaction fees and borrowing from shylocks offering her legs as collateral. This new law is very clear.. Cap minimum interest on interest bearing accounts... So the Banks will set a minimum balance of KES 1,000,000 to open an interest bearing account.. The rest of the accounts will be structured as current accounts earning 0%... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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FRM2011 wrote:The mwananchi bank's are in real trouble. They have facilities called micro loans that are secured with household goods I.e. chattels mortgage.
Am looking at a letter of offer for 300,000 from coop bank.
Int rate : 2% pm flat
Nego fee : 2.5%
After adding insurance, guarantee and hypothecation fees, the APR is 45.2%.
You read that right. These pranksters have been shafting wanjiku in the name of availing credit to her.
Am told equity is much much worse. Will share once I see a sample offer letter. Walk into your nearest bank and apply for a loan under the above security structure at 14.5% p.a. and all you will be looking at is a decline letter. Mark 12:29
Deuteronomy 4:16
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