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Law Capping interest rates
Rank: Veteran Joined: 4/23/2014 Posts: 909
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Pole. how do I post a jpeg image here? “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Elder Joined: 10/1/2009 Posts: 2,436
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So what happens to Omtata's suit now that CBK have clarified CBR is the rate
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Intelligentsia wrote:So what happens to Omtata's suit now that CBK have clarified CBR is the rate The court's decision should override CBK directive
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Intelligentsia wrote:So what happens to Omtata's suit now that CBK have clarified CBR is the rate He will chain himself to a gate or fence near him!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Lolest! wrote:Intelligentsia wrote:So what happens to Omtata's suit now that CBK have clarified CBR is the rate The court's decision should override CBK directive Good luck with that! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rateKEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed...  possunt quia posse videntur
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Equity announces all loans got to 14.5% including Equitel. So, who was recommending we buy this stock? Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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@KulaRaha hiyo ni PR exercise. Let us wait to see the numbers of people given loans at that rate Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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maka wrote:mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed... CBA are free to charge whatever rate they want. Even 2%. Provided they don't charge more than 14.5% Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 8/17/2007 Posts: 294
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meanwhile there is still no physical evidence that banks have reduced rates...any emails yet?
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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maka wrote:mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed... I have said and I will repeat,nothing prevents them from charging 13.9% on loans, but they must give me atleast 7.5% on my deposits, sio hiyo yao ya 6.xx% Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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KulaRaha wrote:Equity announces all loans got to 14.5% including Equitel.
So, who was recommending we buy this stock? So Equitel loans will be 1.2%. That is almost free money. Unless they introduce a fee, that cash cow is gone
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Impunity wrote:maka wrote:mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed... I have said and I will repeat,nothing prevents them from charging 13.9% on loans, but they must give me atleast 7.5% on my deposits, sio hiyo yao ya 6.xx% They goofed... possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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Impunity wrote:muandiwambeu wrote:Impunity wrote:kaifastus wrote:obiero wrote:muandiwambeu wrote:wukan wrote:KulaRaha wrote:obiero wrote:KulaRaha wrote:At 12.9% kcb and co are doomed. What forms the basis of your judgement. Kenyan banks could lend at 5% and still make a profit.. It all depends on cost of funds.. Recalibration of the accounts that qualify for the minimum of 70% on CBR shall determine which bank thrives.. COOP via the SACCO movement remains the best bet to ride this wave With a gross spread of 6% and npls higher, how will they earn a profit? The aim is to maintain the market share so for a while the profit motive takes a chill. I would bet Equity would come at 12% and effectively wipe out the Sacco movement's value proposition. Why would anyone borrow their own money at 12% when you can get it from the bank? I would expect Sacco deposits will shrink so Coop would the worst bus @wakun you have a point I had not seen coming. but it will take some time for the echo's to make rounds. though and simply stated banks are having a Molotov cocktail in their menu and am not ready to dine with them. imagine kbbr at 6.5% that would make it 10.5% for the banks. I would borrow for the first time in my life a secured loan to setup my fourth small production industry without looking over my shoulder's. let the whipping continue. Banks have a lot of say in the financial agenda for the country.. If the banks needed to move the rates up, they could do it.. Plus negotiation fee cannot be capped so the banks can raise appraisal fee to 5% per loan, chargeable annually.. Any fee increment is being monitored by cbk. The cbk recently instructed banks to remove "nuisance" fees like bank closing charges. banks like coop were sending sms threatening to list customers in credit bureaus as defaulters coz of silly charges which arent loans! Again customers will vote with their feet/money and migrate to friendlier banks. The law can be amended to also cap the fees...kwani iko nini? processing fee is a professional charge or commission and there exists guidelines to regulate them already Those guidelines can be abused and so we will regulate them further. I guess we need to ammend that law. As expected, banks have ignored it on mobile lending http://www.businessdaily...79914-4r70jbz/index.html
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: 7/22/2009 Posts: 7,452
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Impunity wrote:maka wrote:mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed... I have said and I will repeat,nothing prevents them from charging 13.9% on loans, but they must give me atleast 7.5% on my deposits, sio hiyo yao ya 6.xx% You are not going to get 7.5% or 6.xx% unless you put your money in a fixed account. Your savings and current accounts are no longer interest earning accounts!!! Talk to your bank! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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MaichBlack wrote:Impunity wrote:maka wrote:mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed... I have said and I will repeat,nothing prevents them from charging 13.9% on loans, but they must give me atleast 7.5% on my deposits, sio hiyo yao ya 6.xx% You are not going to get 7.5% or 6.xx% unless you put your money in a fixed account. Your savings and current accounts are no longer interest earning accounts!!! Talk to your bank! My savings account earns interest... possunt quia posse videntur
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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maka wrote:MaichBlack wrote:Impunity wrote:maka wrote:mkate_nusu wrote:Impunity wrote: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? This was clear from the signing day CBK instructs lenders to use central bank rate So how will CBA proceed... I have said and I will repeat,nothing prevents them from charging 13.9% on loans, but they must give me atleast 7.5% on my deposits, sio hiyo yao ya 6.xx% You are not going to get 7.5% or 6.xx% unless you put your money in a fixed account. Your savings and current accounts are no longer interest earning accounts!!! Talk to your bank! My savings account earns interest... Used to earn interest... Talk to your bank. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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watesh wrote:KulaRaha wrote:Equity announces all loans got to 14.5% including Equitel.
So, who was recommending we buy this stock? So Equitel loans will be 1.2%. That is almost free money. Unless they introduce a fee, that cash cow is gone At 1.2% pm for Equitel-loan, that will be free money. Imagine borrowing 10,000 shillings and pay Kes. 120 as interest? I hope I am dreaming.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 6/23/2009 Posts: 13,503 Location: nairobi
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Impunity wrote:watesh wrote:KulaRaha wrote:Equity announces all loans got to 14.5% including Equitel.
So, who was recommending we buy this stock? So Equitel loans will be 1.2%. That is almost free money. Unless they introduce a fee, that cash cow is gone At 1.2% pm for Equitel-loan, that will be free money. Imagine borrowing 10,000 shillings and pay Kes. 120 as interest? I hope I am dreaming. There is no link to the Equitel rumor.. Treat it as a hoax meant to fatigue the price of Equity stock
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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