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Law Capping interest rates
Rank: New-farer Joined: 2/4/2015 Posts: 15 Location: nairobi
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Plimsoul wrote: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. central bank through their twitter handle confimrs that KBRR currently at 8.9% is the base rate for lending by commercial banks and microfinance banks.
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Rank: Member Joined: 3/3/2016 Posts: 132
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I don't see any such tweet. Did they delete something?
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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CBK only gives guidelines. Matters of interpreting the law per se is not its province. Bear in mind also that the CBK did not sponsor nor advocate for the law - so technically the may not know the real intention of the originators of the law. 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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Ngalaka wrote:CBK only gives guidelines.
Matters of interpreting the law per se is not its province.
Bear in mind also that the CBK did not sponsor nor advocate for the law - so technically the may not know the real intention of the originators of the law. The law requires CBK to publish a base rate. Failure to do so will expose the Governor to legal risk. 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:Ngalaka wrote:CBK only gives guidelines.
Matters of interpreting the law per se is not its province.
Bear in mind also that the CBK did not sponsor nor advocate for the law - so technically the may not know the real intention of the originators of the law. The law requires CBK to publish a base rate. Failure to do so will expose the Governor to legal risk. 2.9m simba shares traded today.. danger volume action on financial services
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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KulaRaha wrote:Ngalaka wrote:CBK only gives guidelines.
Matters of interpreting the law per se is not its province.
Bear in mind also that the CBK did not sponsor nor advocate for the law - so technically the may not know the real intention of the originators of the law. The law requires CBK to publish a base rate. Failure to do so will expose the Governor to legal risk. The question is which of CBR and KBRR are commercial banks to base their interest rates on to borrowers - as per the new law. Suppose CBK says its KBRR and then the courts rule it ought to be based on CBR! Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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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? Seeing is also free. central bank rate = cbr? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 3/3/2016 Posts: 132
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ruwesh wrote:central bank through their twitter handle confimrs that KBRR currently at 8.9% is the base rate for lending by commercial banks and microfinance banks. "Earlier today, a ‘MisTweet' mentioning KBRR was posted on @CBKkenya page. CBK apologizes for any inconveniences caused by this Mis-Tweet."From twitter
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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Plimsoul wrote:ruwesh wrote:central bank through their twitter handle confimrs that KBRR currently at 8.9% is the base rate for lending by commercial banks and microfinance banks. "Earlier today, a ‘MisTweet' mentioning KBRR was posted on @CBKkenya page. CBK apologizes for any inconveniences caused by this Mis-Tweet."From twitter This CBK gavana njoroge will lose the trust respect and goodwill most Kenyans had for him if he continues mishandling this matter. He should clarify the rate asap punda amecheka
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Njoroge is starting to look very weak.....ineffective, unrealistic and stuck in analysis paralysis. One term Governor at best. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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KulaRaha wrote:Njoroge is starting to look very weak.....ineffective, unrealistic and stuck in analysis paralysis.
One term Governor at best. And yet the banksters tremble in fear whenever his name is mentioned.
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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FRM2011 wrote:KulaRaha wrote:Njoroge is starting to look very weak.....ineffective, unrealistic and stuck in analysis paralysis.
One term Governor at best. And yet the banksters tremble in fear whenever his name is mentioned. It's his boss who did that to him.. Njoroge by himself is a God-send
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: New-farer Joined: 12/16/2009 Posts: 33
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Will banks now pay 7.35% interest on savings accounts?
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Why is CBK so silent, kwani what rate were they using before ?.
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Rank: Elder Joined: 12/4/2009 Posts: 10,683 Location: NAIROBI
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@Streetwise CBK wasn't for it and the governor when asked for comments he said he had nothing to say Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Ericsson wrote:@Streetwise
CBK wasn't for it and the governor when asked for comments he said he had nothing to say Abdicating his duty. Business opportunities are like buses,there's always another one coming
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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BS. Njoroge actually did an article on this in the DN and he was a clear as he could be that this was law was ushamba style economics. If you know anything about this Kenya's economic history, you'd realize this guy is probably one of the best governors we've had so far. Ericsson wrote:@Streetwise
CBK wasn't for it and the governor when asked for comments he said he had nothing to say Sehemu ndio nyumba
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Rank: Elder Joined: 12/4/2009 Posts: 10,683 Location: NAIROBI
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@KulaRaha Raha itakumaliza. Kuwa mpole Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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KulaRaha wrote:Njoroge is starting to look very weak.....ineffective, unrealistic and stuck in analysis paralysis.
One term Governor at best. This is a political mess up and the governor is trying to find an economic solution to the problem. Give him time. Surely you can't be serious about the one term there is no governor that has come close to Opus Dei performance to date KEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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The law is in force from 14th September. If CBK dont publish a "base rate", what will happen? Business opportunities are like buses,there's always another one coming
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