civic awareness through corporate action. if holding financials, ur out for a nasty pepper tear gassing treat. it gone hurt for a long time. Bp, sukari n salts sitapanda if u r inside now onwards. this is battle of the titans. keep distance . who wins? banks, mpc, mpigs or kamwana. watching from the sides.

From my understanding there is no much difference as the bank will always be making 4% above the CBR.

Hahaha, birdman is a known banker here in wazua, so expect nothing positive on the rate cap from him, rate cap to me is the best thing to happen so far this year. Existing loan instalment with Barclays down.

@Welder - What makes you imagine Jua Kali means chomelea (welding). Jua Kali is very broad.

These are exactly the people who will reverse the law. This was 100% political decision and once UK is back in the house on the hill, be ready for the reversal. I have a feeling the law will not see the end of 2017.

There is a huge difference bro. Most banks are moving most customers to non interest earning accounts and setting impossible conditions interest earning accounts - like withdrawing only twice a year etc.

In a nutshell, most deposits will be "free" so the higher the CBR, the more the banks make and the lower the CBR the less the banks make!!!

Also as @Swenani has so ably explained, the interest paid on deposits is a percentage and the interest charged on loans is a fixed figure above the CBR rate.

Now that the effects of the bill are finally dawning down, let's see if the government will introduce another to force banks to lend depositors money by force to unsecured borrowers with no credit history or collateral.

Uhuru's own goal and the journey of self elimination from the beauty contest has started.[Re: Zambia and Venezuela pricing controls]

Brexit was an own goal, UK own goal, waiting for the Trump own goal.

A great time to be alive.

Everyone preaching doom and gloom,so I believe my questions will be well fought out for:
1. What are the actual effects of brexit,both pro and anti? I am yet to see any document on the same and especially from anti-brexiters who predicted collapse of britain as opposed to europe.
2. In this instance,if banks do not loan out monies to wananchi,and gava decides to do another eurobond,who will they loan put to? (Obviously a bank will rise and take up those angry with their banks for some funny rules on their accounts,saccos still have lower interest while they came up due to the same banks shafting customers on loans. My two cents)
3. Government is now getting quite cheap money. Would banks not loaning money to citizens willing to take them then bid as low as 7% margin on money they're giving out to gava? Would that make business sense?
4. If citizens ignore banks just for fun in terms of not taking loans,wont banks deploy en-masse to woo every tom dick and harry to avoid going into loss making territory?
5. What of NPLs so far since bill was signed? What are the changes seen so far on banks?
More questions to follow in due time

So private sector credit growth is just a third(7.2%) of what it was in July last year(21.4%) and that's even before interest rates capping.

Inflation be damned!!! 2017 will be interesting. Someone get me some popcorns

Seems the Governor is not as enthusiastic as the rest of you:

Kenya central bank: commercial bank lending may be hit by cap on rates - Reuters News

NAIROBI, Sept 21 (Reuters) - Kenya's cap on commercial bank lending rates is complicating monetary policy and, alongside a cut in the benchmark interest rate, may lead to a decrease in commercial bank lending, the Kenya central bank governor said Wednesday.

Those borrowers deemed to be higher risk are likely to find it more difficult to secure loans after the central bank cut its key lending rate by half a percentage point or 50 basis points to 10 percent on Tuesday, Patrick Njoroge told a new conference.



(Reporting by George Obulutsa; Editing by Katharine Houreld)