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Uhuru's own goal
Rank: Member Joined: 9/25/2008 Posts: 510
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Forgive my ignorance, mbona majuu loans interest ni single digit and the economy is ok? How do banks survive there in the US? or Federal reserve rate ni 1%???? I AM trust in GOD, I AM belief in THYSELF
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Rank: Veteran Joined: 6/23/2014 Posts: 1,652
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Caveman wrote:Swenani wrote:Caveman wrote:Wamunyota wrote:Caveman wrote:Wamunyota wrote:Caveman wrote:Wakanyugi wrote:Wamunyota wrote:So in his wisdom our able president ignored expert advice in enacting the bill on capping the interest rates.He chose votes over economic stability.He did not want to start conflicts with the MPs after shadow boxing them to join the jubilee party.He chose the easy route.The more popular route.The economy is now completely f***ed.The banks have already lost 47BIRRION In their value.
The economic meltdown has started.The popularity politics he was protecting will come back to bite his ass.
His only hope is now for Raila to run for president so that they can tell us about how Raila cannot be president.
This is a big fraud.My kalocal cannot buy more stocks because the banks are no longer offering unsecured loans.He cannot but a tuktuk because the loan on motor vehicles have been freezed.
The economic credit crunch have started.The exchange rate to the dollar is going back to 115.He can as well vote for himself.
Sasa tutakura raha aje kama kakuna pesa? Wamunyota: This 'sky is falling' scare mongering is getting a little old. So bank stocks have tanked and foreign speculation capital is leaving the country, to which I say good riddance. Can you tell me exactly how this is likely affecting mama mboga? Don't confuse the whining of a long pampered elite with the majority, many of whom have no investments on the stock market and would not dream of a bank loan, even at 14%. By daring the banks Uhuru has made a political master stroke that will cement his chances of electoral success and long term will benefit the economy. Finally we have recently seen even more stringent regulation of banks (including interest rates) in US, Europe etc following the 2008 bank led economic collapse. The sky has yet to fall. Get over yourselves. Please help me understand these: 1) The banks are supposed to exploit their customers and no action should be taken? How to banks exploit their customers?We are a capitalist state.Willing buyer willing seller.2) There is competition among banks and other institutions on who is going to make abnormal profits from exploiting their customers? Define an abnormal profit.3) 4% above base rate set by CBK is unrealistically low? How did the MPs determine the 4%.Why not 5% or 3%?4) Who should be protected: the powerless consumer or the greedy investors? Everyone deserves protection from the crooked government.The so called greedy investors are employers of hundreds of kenyans and play a very important role in the economy. Clearly, I will not get help. I am just a customer. A naive customer who is believing the lies being peddled by his government for votes. True. Let me retreat back to my cave where i belong.  Usiwahiiii toka kwa hio cave  I should be allowed to peep, so long as I don't raise my head above the ground. Perhaps I might spot some cheap loan. Hutia Mundu!!
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Rank: Veteran Joined: 6/23/2014 Posts: 1,652
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T-Bag wrote:Forgive my ignorance, mbona majuu loans interest ni single digit and the economy is ok? How do banks survive there in the US? or Federal reserve rate ni 1%???? Kuna factors nyingi zinacontribute kwa kuset up interest rate.Kwa mfano inflation,exchange rates,economic growth etc.The rate of inflation is currently about 6.5%.The CBK sets the risk free rate which is the minimum rate of interest can be charged excluding the risks.The banks then considers the risk of the clients and adds a margin to charge the customers.How the MPs determined is 4% i have no idea. Hutia Mundu!!
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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T-Bag wrote:Forgive my ignorance, mbona majuu loans interest ni single digit and the economy is ok? How do banks survive there in the US? or Federal reserve rate ni 1%???? No reply to this thus uhuru made the best decision by a Kenyan president. These sharks including his own had to be tamed punda amecheka
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Rank: Veteran Joined: 6/23/2014 Posts: 1,652
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newfarer wrote:T-Bag wrote:Forgive my ignorance, mbona majuu loans interest ni single digit and the economy is ok? How do banks survive there in the US? or Federal reserve rate ni 1%???? No reply to this thus uhuru made the best decision by a Kenyan president. These sharks including his own had to be tamed Hii sychophancy ya uhuru itawamaliza.Could you demontrate how this is the best decision by a kenyan president? Hutia Mundu!!
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Rank: Elder Joined: 3/2/2009 Posts: 26,330 Location: Masada
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Wamunyota wrote:Caveman wrote:Wamunyota wrote:Caveman wrote:Wamunyota wrote:Caveman wrote:Wakanyugi wrote:Wamunyota wrote:So in his wisdom our able president ignored expert advice in enacting the bill on capping the interest rates.He chose votes over economic stability.He did not want to start conflicts with the MPs after shadow boxing them to join the jubilee party.He chose the easy route.The more popular route.The economy is now completely f***ed.The banks have already lost 47BIRRION In their value.
The economic meltdown has started.The popularity politics he was protecting will come back to bite his ass.
His only hope is now for Raila to run for president so that they can tell us about how Raila cannot be president.
This is a big fraud.My kalocal cannot buy more stocks because the banks are no longer offering unsecured loans.He cannot but a tuktuk because the loan on motor vehicles have been freezed.
The economic credit crunch have started.The exchange rate to the dollar is going back to 115.He can as well vote for himself.
Sasa tutakura raha aje kama kakuna pesa? Wamunyota: This 'sky is falling' scare mongering is getting a little old. So bank stocks have tanked and foreign speculation capital is leaving the country, to which I say good riddance. Can you tell me exactly how this is likely affecting mama mboga? Don't confuse the whining of a long pampered elite with the majority, many of whom have no investments on the stock market and would not dream of a bank loan, even at 14%. By daring the banks Uhuru has made a political master stroke that will cement his chances of electoral success and long term will benefit the economy. Finally we have recently seen even more stringent regulation of banks (including interest rates) in US, Europe etc following the 2008 bank led economic collapse. The sky has yet to fall. Get over yourselves. Please help me understand these: 1) The banks are supposed to exploit their customers and no action should be taken? How to banks exploit their customers?We are a capitalist state.Willing buyer willing seller.2) There is competition among banks and other institutions on who is going to make abnormal profits from exploiting their customers? Define an abnormal profit.3) 4% above base rate set by CBK is unrealistically low? How did the MPs determine the 4%.Why not 5% or 3%?4) Who should be protected: the powerless consumer or the greedy investors? Everyone deserves protection from the crooked government.The so called greedy investors are employers of hundreds of kenyans and play a very important role in the economy. Clearly, I will not get help. I am just a customer. A naive customer who is believing the lies being peddled by his government for votes. True. Let me retreat back to my cave where i belong.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 10/6/2009 Posts: 587
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Wamunyota wrote:Wakanyugi wrote:Wamunyota wrote:sitaki.kujulikana wrote:I remember when Michuki reduced the sitting/standing capacity in matatus and some thought the industry would collapse because they would not make money, or wanjiku would not afford bus fare. Banking industry is not the same as matatu industry You are exactly right on this one. Money is not any product. It is the lifeblood of an economy and, like petrol, is too important to be left to the whims of so called market forces. Banks happen to be the plumbers of the economy in that they control how money flows and to whom. Unfortunately, on countless occasions and domains, they have proven themselves too greedy to perform this role without risking the patient. Hence the need for regulation. How would the economy benefit with the collapse of the banking industry?So now we are celebrating the death of Equete?Wacha ikufe tuone kwenye mama mboga atatoa pesa @wamunyota...just around 2000, the so called big banks were not lending to baba na mama mboga even if you took all your clans' (yours, your father's, your grandfather's) title deeds to them as collateral. These banks were not even dealing with small time jua kali fellows who were perceived to be extremely high risk people. Then came ekwete who started opening branches in gikomba, kariobangi light industries, kawangware, mathare north, kibera etc and started dealing with akina baba and mama mboga and jua kali people, the very extremely risky customers. Then all of a sudden, the big banks trooped to those areas which they had shunned and started begging the very extremely risky customers to open accounts with them banks. Come 2002, they started pitching tents on the street pavements hawking loans to the same risky people... Personally I think, if the banks make a stupid move, the SACCOs will become the ekwete of 2000. What is wrong with collecting deposits from 1000 people, deposit it to a big bank to earn 7% while the SACCO pays the depositors 3 or 4% in addition to offering cheap loans to the disgruntled bank customers?
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Rank: Elder Joined: 7/1/2011 Posts: 8,804 Location: Nairobi
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Uhuru has done a good thing because he has counterbalanced a sector that has lots of political and economic power that if left alone would send not just the wrong message to the majority of citizens, but would help create a monopoly of power.
In the short term, we may see the banks and investors fighting back, but through the middle and long terms the banks may be forced to find a middle ground. What I'm not certain about is the ability of citizen power to be active enough to respond to the banks on time.
But these are uncertain times. The text book economics that we've been relying on are in tatters...
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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Wamunyota wrote:sitaki.kujulikana wrote:I remember when Michuki reduced the sitting/standing capacity in matatus and some thought the industry would collapse because they would not make money, or wanjiku would not afford bus fare. Banking industry is not the same as matatu industry.No one is telling wanjiku that she will have to walk to work and hang on the overcrowded trains.Brace yourselves. to those who understand the blue section, please confirm to me kama nimetusiwo I was just trying to compare the two scenarios, of course I am sure banking industry and the matatu industry are vastly different but looking at it from the point of view where rules were introduced that seemed at first to reduce the profits of the said industry
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Rank: Veteran Joined: 11/17/2009 Posts: 1,049
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Baratang wrote:Wamunyota wrote:Wakanyugi wrote:Wamunyota wrote:sitaki.kujulikana wrote:I remember when Michuki reduced the sitting/standing capacity in matatus and some thought the industry would collapse because they would not make money, or wanjiku would not afford bus fare. Banking industry is not the same as matatu industry You are exactly right on this one. Money is not any product. It is the lifeblood of an economy and, like petrol, is too important to be left to the whims of so called market forces. Banks happen to be the plumbers of the economy in that they control how money flows and to whom. Unfortunately, on countless occasions and domains, they have proven themselves too greedy to perform this role without risking the patient. Hence the need for regulation. How would the economy benefit with the collapse of the banking industry?So now we are celebrating the death of Equete?Wacha ikufe tuone kwenye mama mboga atatoa pesa @wamunyota... just around 2000, the so called big banks were not lending to baba na mama mboga even if you took all your clans' (yours, your father's, your grandfather's) title deeds to them as collateral. These banks were not even dealing with small time jua kali fellows who were perceived to be extremely high risk people. Then came ekwete who started opening branches in gikomba, kariobangi light industries, kawangware, mathare north, kibera etc and started dealing with akina baba and mama mboga and jua kali people, the very extremely risky customers. Then all of a sudden, the big banks trooped to those areas which they had shunned and started begging the very extremely risky customers to open accounts with them banks. Come 2002, they started pitching tents on the street pavements hawking loans to the same risky people... Personally I think, if the banks make a stupid move, the SACCOs will become the ekwete of 2000. What is wrong with collecting deposits from 1000 people, deposit it to a big bank to earn 7% while the SACCO pays the depositors 3 or 4% in addition to offering cheap loans to the disgruntled bank customers? Yeah, the then big banks shunned the small guy on the streets in favour of "persons" of better credit worthiness. Subsequently, interest rates were relatively ok. Then Equity happened. This new kid on the block treaded where others feared, but there was a catch - due to the segments risks, they put a premium on the interest they charge. Any wonder then that even todate Equity is amongst the highest interest chargers in the market! Seeing that the establishment's bank was not shy to charge high rates, other banks joined the dance. And now we are where we are! Just as absolute power corrupts leaders, so does absolute fanaticism blind the people from logic
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Rank: Veteran Joined: 11/17/2009 Posts: 1,049
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mkenyan wrote:Nandwa wrote:Caveman wrote:Wakanyugi wrote:Wamunyota wrote:So in his wisdom our able president ignored expert advice in enacting the bill on capping the interest rates.He chose votes over economic stability.He did not want to start conflicts with the MPs after shadow boxing them to join the jubilee party.He chose the easy route.The more popular route.The economy is now completely f***ed.The banks have already lost 47BIRRION In their value.
The economic meltdown has started.The popularity politics he was protecting will come back to bite his ass.
His only hope is now for Raila to run for president so that they can tell us about how Raila cannot be president.
This is a big fraud.My kalocal cannot buy more stocks because the banks are no longer offering unsecured loans.He cannot but a tuktuk because the loan on motor vehicles have been freezed.
The economic credit crunch have started.The exchange rate to the dollar is going back to 115.He can as well vote for himself.
Sasa tutakura raha aje kama kakuna pesa? Wamunyota: This 'sky is falling' scare mongering is getting a little old. So bank stocks have tanked and foreign speculation capital is leaving the country, to which I say good riddance. Can you tell me exactly how this is likely affecting mama mboga? Don't confuse the whining of a long pampered elite with the majority, many of whom have no investments on the stock market and would not dream of a bank loan, even at 14%. By daring the banks Uhuru has made a political master stroke that will cement his chances of electoral success and long term will benefit the economy. Finally we have recently seen even more stringent regulation of banks (including interest rates) in US, Europe etc following the 2008 bank led economic collapse. The sky has yet to fall. Get over yourselves. Please help me understand these: 1) The banks are supposed to exploit their customers and no action should be taken? Action should certainly be taken - but done in a measured and responsible way - choosing the least hurting (to the economy et al) route.2) There is competition among banks and other institutions on who is going to make abnormal profits from exploiting their customers? It's a free economy. Even Mama Mbogas prices are set by herself, but if one can still make money selling at less, then she would be pushed out through competion.3) 4% above base rate set by CBK is unrealistically low? One would need to look at all variables. I mean why hasnt anybody gone into banking to offer those kinds of interest rates and attract all the credit seekers and boom with all the volumes that are sure to follow!4) Who should be protected: the powerless consumer or the greedy investors? Cut out the prejudices first. That said, Govt should be an unbiased and responsible arbiter/regulator where is this idea of comparing banks with mama mboga (and the likes) coming from? for starters mama mboga's business is not regulated by the central bank of kenya - control and regulation should not be alien to the banks. Comparison is limited to the concept of doing business in a capitalist - free market economy environment. And by the way any, indeed all businesses operating in a country that has a government are by default subject to regulation! Tell me of a sector that does not have some Govt authority watching over them. The point of departure however is if the regulation is carried out in a way that is good for the economy. This is a factor for capital flight from some countries among others. Just as absolute power corrupts leaders, so does absolute fanaticism blind the people from logic
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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Nandwa wrote:Baratang wrote:Wamunyota wrote:Wakanyugi wrote:Wamunyota wrote:sitaki.kujulikana wrote:I remember when Michuki reduced the sitting/standing capacity in matatus and some thought the industry would collapse because they would not make money, or wanjiku would not afford bus fare. Banking industry is not the same as matatu industry You are exactly right on this one. Money is not any product. It is the lifeblood of an economy and, like petrol, is too important to be left to the whims of so called market forces. Banks happen to be the plumbers of the economy in that they control how money flows and to whom. Unfortunately, on countless occasions and domains, they have proven themselves too greedy to perform this role without risking the patient. Hence the need for regulation. How would the economy benefit with the collapse of the banking industry?So now we are celebrating the death of Equete?Wacha ikufe tuone kwenye mama mboga atatoa pesa @wamunyota... just around 2000, the so called big banks were not lending to baba na mama mboga even if you took all your clans' (yours, your father's, your grandfather's) title deeds to them as collateral. These banks were not even dealing with small time jua kali fellows who were perceived to be extremely high risk people. Then came ekwete who started opening branches in gikomba, kariobangi light industries, kawangware, mathare north, kibera etc and started dealing with akina baba and mama mboga and jua kali people, the very extremely risky customers. Then all of a sudden, the big banks trooped to those areas which they had shunned and started begging the very extremely risky customers to open accounts with them banks. Come 2002, they started pitching tents on the street pavements hawking loans to the same risky people... Personally I think, if the banks make a stupid move, the SACCOs will become the ekwete of 2000. What is wrong with collecting deposits from 1000 people, deposit it to a big bank to earn 7% while the SACCO pays the depositors 3 or 4% in addition to offering cheap loans to the disgruntled bank customers? Yeah, the then big banks shunned the small guy the the streets in favour of "persons" of better credit worthiness. Subsequently, interest rates were relatively ok. Then Equity happened. This new kid on the block treaded where others feared, but, but there was a catch - due to the segments risks, they put a premium on the interest they charge. Any wonder then that even todate Equity is amongst the highest interest chargers in the market! Seeing that the establishment's bank was not shy to charge high rates, other banks joined the dance. And now we are where we are! kwani how much were interest rates pre equity, and how comes even the banks that do not deal with the risky wanjiku also charge high rates
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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kuna ka chart nimeona hapa, @masukuma is that data true hapo early 90's rates were above 80% ama hi ni findio tu 
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Rank: Member Joined: 10/28/2008 Posts: 41
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T-Bag wrote:Forgive my ignorance, mbona majuu loans interest ni single digit and the economy is ok? How do banks survive there in the US? or Federal reserve rate ni 1%???? Asked and answered yourself. In some of these countries being mentioned, their Central Banks are on even less than 1%. And clamping down on defaulters is done hard and easily. Here... The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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The KBRR set by CBK as the base rate normally considers all the cost of funds to the banks including their profits, so if you ask me, the margin this bill allows which is CBR+4% is more than generous, they should have given them maximum 2% above base rate, afterall, the deposits are not theirs "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 7/17/2008 Posts: 478 Location: Old Trafford
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Obi 1 Kanobi wrote:The KBRR set by CBK as the base rate normally considers all the cost of funds to the banks including their profits, so if you ask me, the margin this bill allows which is CBR+4% is more than generous, they should have given them maximum 2% above base rate, afterall, the deposits are not theirs Ditto. 1-2% would have been more than enough for them.
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Rank: Elder Joined: 3/2/2009 Posts: 26,330 Location: Masada
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sitaki.kujulikana wrote:kuna ka chart nimeona hapa, @masukuma is that data true hapo early 90's rates were above 80% ama hi ni findio tu The Goldenburg error! Tenderprenuers who bought 30-YRS Treasury Bonds at 80%pa and still laughing all the way to CBK. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 3/2/2009 Posts: 26,330 Location: Masada
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Bree wrote:Obi 1 Kanobi wrote:The KBRR set by CBK as the base rate normally considers all the cost of funds to the banks including their profits, so if you ask me, the margin this bill allows which is CBR+4% is more than generous, they should have given them maximum 2% above base rate, afterall, the deposits are not theirs Ditto. 1-2% would have been more than enough for them. Hi @Bree. So long, >3 years no see!? Please talk to me at: 2008impunity (at) gmail (dot) com Got some sayings to you. Thanks Ma'm Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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Wamunyota wrote:Wakanyugi wrote:Wamunyota wrote:sitaki.kujulikana wrote:I remember when Michuki reduced the sitting/standing capacity in matatus and some thought the industry would collapse because they would not make money, or wanjiku would not afford bus fare. Banking industry is not the same as matatu industry You are exactly right on this one. Money is not any product. It is the lifeblood of an economy and, like petrol, is too important to be left to the whims of so called market forces. Banks happen to be the plumbers of the economy in that they control how money flows and to whom. Unfortunately, on countless occasions and domains, they have proven themselves too greedy to perform this role without risking the patient. Hence the need for regulation. How would the economy benefit with the collapse of the banking industry?So now we are celebrating the death of Equete?Wacha ikufe tuone kwenye mama mboga atatoa pesa There you go again. Scarenomics. Mara, oh, sijui equite anakufa,; mara oh, Wanjiku kwisa; mara oh, banks will collapse. Which banks? We only ask that they curb their greed, just a little bit. Compared to the regulatory pain their counterparts are experiencing overseas, this a slap in the wrist. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: User Joined: 9/6/2013 Posts: 1,446 Location: In a house
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sitaki.kujulikana wrote:I remember when Michuki reduced the sitting/standing capacity in matatus and some thought the industry would collapse because they would not make money, or wanjiku would not afford bus fare. Outside Nairobi watu husimama ama huketi kama orbit. Nani hutumia seatbelt, especially in PSV's? Tutarudi tu huko tunatoka. We have good laws... who follows them?
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