A Bank gives you an umbrella when it is sunny and takes it away when it starts raining.

What am I saying? I am saying that a bank makes money when you are servicing your loans but makes more money when you default.

How does a bank do that? A bank does that by attaching and selling the security which could be your house, stock of goods or your business.

Banks are not stupid my fren.

🎲 the dice has landed. Its now official kequeer has grown voluptuous shafting appetito to the willing souls. .

Here is my take:

- GoK will convert debt to equity [think NBK, KPLC, KenGen or Uchumi] at a discount i.e. the taxpayer will end up buying worthless shares. Even if GoK gets some value, it will be at a fraction of the investment.

- Banks, like Uchumi's creditors, will get shares BUT unlike Uchumi, they may not be able to sell them out at the price they will get the shares. Once bitten, twice shy.

- The guarantee of $77mn is peanuts. Banks are owed $280mn so this is only 25% of the current debt. And the guarantee kicks in over 10 years so accounting for time value of money it might be only 5%!

This is a poor deal for the banks i.e. they may have rights/collateral they can seize and get more than 25% in TODAY's money. I also think that banks were arm-twisted into not taking action against KQ much earlier.

The Taxpayer will be screwed over 100%.

I am sure there are a few idiots [minority shareholders] who would put in fresh cash in as a Rights Issue but I don't think most would.

I stated very early herein that whoever dealing or planning to deal with KQ shares should thread carefully. I repeat it once again. I am very sure Parliament will shoot down the proposed bailout package and the next thing to happen is the most unthinkable act of KQ brand demise.

I also mentioned a while ago that the loss reported shows the Company is in a more pathetic position compared to when the 26 billion was announced a year ago. Without a quick cash injection then things will be thick and planes will be impounded by the fuel suppliers at the stations.

I hope the mpigs can approve the proposal before the house is dissolved. These are hard times for KQ.

Even Ngunze is among the culprits. They should be hanged. Infact, Ngunze is the one who nailed the last bullet in the coffin. He is totally incompetent, I say it without fear or favour.

The mpigs will demand these idiots to face the law before the bailout is approved unless Kamwana calls for a Kamukunji.

i guess they are suckers for shafting

Hahaha..

1.2 per KQ share is laughable, but even if we touch it, a rapid rise back to KES 10 or more, is guaranteed.. Michael Joseph should be made the President of Kenya.. A visionary with few equals.. Probably only Kibaki is in his league of thought