I'd say we relax and give it atleast 2 years after the general elections. The effect of elections would have greatly worn off and there would have been sufficient time for the rest of the players in the financial system to adjust.

If banks are directing more money to GK securities, then it begs a number of questions,
1) Is GK borrowing growing at a rate to swallow up the excess funds or are the banks crowding out other investors and driving the rates down?
2) If banks are crowding out other debt investors, then where is that 'excess money' from the investors going to?

GK has a significant influence in a few local banks. Is there the possibility of also intervening indirectly to make the cartels in the banking sector behave properly? Of course there is. Create a fund and channel through these banks, for a small fee, money to Credit-worthy SMEs. Will banks in the long run continue to ignore the wider spreads from direct lending in favour of admin fees gained from running the fund (even with loan loss provisions considered)? Banks will eventually have to cave and stop indiscriminate cutting of lending.

GK has tried intervening in the energy sector (where there have been cartels) indirectly through National Oil and also directly through the fuel pricing formular and I would say with good success.

The pain that is currently being faced from the rate cap is because the whole 'money system' has not adjusted. The system is still in shock from the rate cap and has not adjusted.

What I am opposed to greatly is the notion that the only adjustment is reversal of caps (so that cartels take us again?) Banks should continue to pick out good borrowers and lend and then take the rest of the money to GK securities. These shenanigans of punishing everyone with exhorbitant rates because of lending indiscriminately can't continue.

@Obi 1 Kanobi... thank you for posting that link. We will continue to have alternative facts.

The Movable Property Security Rights Bill has been signed into law. You can now get a loan using movable assets like livestock as collateral.

Here we are http://www.businessdaily...9230-geckqhz/index.html[/quote]
Since late 1800 Graham's law has never been found false. NSE index approaches 3,200 on a multi month rally http://www.businessdaily...921646-ywcses/index.html

The negatives brought out by this rate cap maneno, clearly outweigh the positives. Even the rise in inflation can be tied directly to this action

@Obiero, so many vacant houses, just look around; increase rent at your own peril; unless it is in informal settlement...

I see many "to let sign" signs in our estate and on my way to work. I won't disclose where I stay for security purposes

They are many...

@maka does it mean there is a glut or did people move back to the counties. Worse still, could the population be on a decline.. Meanwhile, one of the two men is on record as calling for single digit borrowing. Sad state of affairs http://www.businessdaily...31392-x2tjnc/index.html[/quote]

I've been enlightening you on this clamour for long only that you don't listen. IMF and World Bank as well as commercial banks were misguided by corporate greed and clandestine moves by Bretton Wood institutions who don't wish well for this country.
Law capping interest rates must remain in force as the government continues to press for single digit cost of borrowing!

Wewe increase rent and live in your own houses. I also live within 5kms of the CBD and there are many houses and many being built almost overnight! Already most of the rents in these areas were exhorbitant. That's why many apartments were germinating faster than beans.

Obiero, there are no two ways about it. Banks must live in the new reality.