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Law Capping interest rates
Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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mlennyma wrote:http://www.nation.co.ke/business/Cytonn-assigns-buy-rating-to-banking-stocks/996-3370094-myqaeu/index.html buy and stop making noise "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Another haircut in the offing!!! This guy needs to open an mpesa paybill number  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: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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It would be funny if the threat of bank runs didn't exist. If anyone here holds cash in anything but a tier 1 or select tier 2, sleep with one eye open. Thank me later
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: 10/6/2009 Posts: 587
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This petition is not going anywhere. When the bill was signed into law it cleary stipulated that the prevailing interest rate will be based upon the Central Bank Rate (CBR) as the benchmark.
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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This guy lives in Court or something! I like the way he has influenced matters in our political and legal landscape. At least one effective activist. Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Baratang wrote:This petition is not going anywhere. When the bill was signed into law it cleary stipulated that the prevailing interest rate will be based upon the Central Bank Rate (CBR) as the benchmark. Really? I understand the Hansard say it was KBRR MPs were referring to... So much half baked info out there, all because CBK wont give direction. Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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Baratang wrote:This petition is not going anywhere. When the bill was signed into law it cleary stipulated that the prevailing interest rate will be based upon the Central Bank Rate (CBR) as the benchmark. the interest rates can even shoot up to 20% when the CBR rises to 16%. This guy is talking of the Kenya Banks Reference Rate (KBRR) nothing new here. KEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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mkate_nusu wrote:Baratang wrote:This petition is not going anywhere. When the bill was signed into law it cleary stipulated that the prevailing interest rate will be based upon the Central Bank Rate (CBR) as the benchmark. the interest rates can even shoot up to 20% when the CBR rises to 16%. This guy is talking of the Kenya Banks Reference Rate (KBRR) nothing new here. Its the same CBK who sets the KBRR...so this is a zero sum equation...CBR can easily set the KBRR = CBR. Mta do? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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When you borrow, you current letter of offer states KBRR, not CBR. All banks complied with this. So now, isn't KBRR the published reference rate? Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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Fellow wazuans, reading is free and it was all over the news Under the new law, lending rates will be capped at four percentage points above the benchmark central bank rate, which is currently 10.5 per cent, while deposit rates must be at least 70 per cent of the benchmark rate. KEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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mkate_nusu wrote:Fellow wazuans, reading is free and it was all over the news
Under the new law, lending rates will be capped at four percentage points above the benchmark central bank rate, which is currently 10.5 per cent, while deposit rates must be at least 70 per cent of the benchmark rate. The law makes no reference to CBR...just a base rate. What is base? Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 3/3/2016 Posts: 132
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KulaRaha wrote:mkate_nusu wrote:Fellow wazuans, reading is free and it was all over the news
Under the new law, lending rates will be capped at four percentage points above the benchmark central bank rate, which is currently 10.5 per cent, while deposit rates must be at least 70 per cent of the benchmark rate. The law makes no reference to CBR...just a base rate. What is base? Actually, the law says: “A bank or financial institution shall set the maximum interest rate chargeable for a credit facility in Kenya at no more than four per cent, the base rate set and published by the Central Bank of Kenya” and yes, it is that poorly worded. Even the word 'above' is missing.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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So it can even be inferred that base rate is 4%? Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 3/3/2016 Posts: 132
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KulaRaha wrote:So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Plimsoul wrote:KulaRaha wrote:So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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KulaRaha wrote:Plimsoul wrote:KulaRaha wrote:So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... LOL. Those banks self destructed..
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: 3/3/2016 Posts: 132
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KulaRaha wrote:Plimsoul wrote:KulaRaha wrote:So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Hopefully CBK responds to banks (privately) when they seek clarification/guidance.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Plimsoul wrote:KulaRaha wrote:Plimsoul wrote:KulaRaha wrote:So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Hopefully CBK responds to banks (privately) when they seek clarification/guidance. As a customer, dont you feel its your right to know the correct interpretation? Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 3/3/2016 Posts: 132
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KulaRaha wrote:Plimsoul wrote:KulaRaha wrote:Plimsoul wrote:KulaRaha wrote:So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Hopefully CBK responds to banks (privately) when they seek clarification/guidance. As a customer, dont you feel its your right to know the correct interpretation? Absolutely. I think this has been terribly mishandled so far. CBK should have issued clarification with its 14th Sept ultimatum. But we are customers of banks, not the CBK. It is up to banks to get clarification and pass it on to us.
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Law Capping interest rates
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