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Law Capping interest rates
Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Am sure KCB, Coop and NBK will organize and see Rotich and then they will get 'permanent' waivers for the accounts they hold - supported by CBK. Watch this space. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Angelica _ann wrote:Am sure KCB, Coop and NBK will organize and see Rotich and then they will get 'permanent' waivers for the accounts they hold - supported by CBK. Watch this space. This takes us back to the initial question of how much profit is enough. Why would a parastatal be keen to purchase bonds rather than improve livelihoods
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: 12/7/2012 Posts: 11,908
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obiero wrote:Angelica _ann wrote:Am sure KCB, Coop and NBK will organize and see Rotich and then they will get 'permanent' waivers for the accounts they hold - supported by CBK. Watch this space. This takes us back to the initial question of how much profit is enough. Why would a parastatal be keen to purchase bonds rather than improve livelihoods Misguided priorities ..... of course it easy to eat through these 'funny' investments than implementing activities that make you achieve the desired/actual goals and objectives of the organization. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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Partick Njoroge the CBK Governor very clearly says the caps have brought us nothing but trouble. Our continued keeping of the law amounts to continued shooting of ourselves in the foot. A no-brainer right from the word go. The Central Bank of Kenya (CBK) has renewed push for a repeal of the law capping interest rates, which it says is having a negative effect on the economy.Quote:“So far the interest rate caps have been acting as a break to the economy,” Dr Njoroge said. “The economy is being held back by this. This is something that we need to bring to the fore and deal with so as to support rather than inhibit economic dynamism.”
However Dr Njoroge said unlocking the credit crunch is a prerequisite for economic growth in 2018.
He is bullish on the economic prospects in 2018 projecting growth of around 6.2 per cent. Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Member Joined: 8/19/2015 Posts: 125
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Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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mlennyma wrote:Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well There shall be very little if any amendment to the capping.. Banks results coming up shortly will show that it's possible to remain profitable even with the caps
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: 7/21/2010 Posts: 6,183 Location: nairobi
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obiero wrote:mlennyma wrote:Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well There shall be very little if any amendment to the capping.. Banks results coming up shortly will show that it's possible to remain profitable even with the caps Not a question of profitability but banks ignoring the massive risky sectors and individuals ,better an expensive loan which is available than a cheap loan which is not available ...why are banks auctioning hundreds of vehicles if loans are cheap? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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mlennyma wrote:obiero wrote:mlennyma wrote:Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well There shall be very little if any amendment to the capping.. Banks results coming up shortly will show that it's possible to remain profitable even with the caps Not a question of profitability but banks ignoring the massive risky sectors and individuals ,better an expensive loan which is available than a cheap loan which is not available ...why are banks auctioning hundreds of vehicles if loans are cheap? The economy crumbled
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: 1/10/2016 Posts: 15 Location: Machu Pichu
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The banks have deliberately refused to lend, sabotaging the economy so that they justify the rate cap as the cause. Even more infuriating is the banks haven't put an alternative policy on how they will self regulate when it comes to interest rates. Greed for super profits is all they want and care about..
Why have they not come up with policies where Low risk
Borrowers with good credit rating get loans at rates like 10% or less. While risky borrowers pay higher rates?
In UK for instance, you can borrow for as little as 2% and for as high as 3600%
It all depends on ones credit worthiness
In Kenya however, every Dick Tom and Harry are gauged with the same yard stick. Because of the utter ineptness and laziness the bankers. Meaning good creditors are made to offset the banks losses from defaulters and bad creditors
Those here on wazua attacking the interest rate cap are nothing but shareholders desperate for a bumper dividends
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Rank: Member Joined: 2/20/2007 Posts: 767
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mlennyma wrote:obiero wrote:mlennyma wrote:Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well There shall be very little if any amendment to the capping.. Banks results coming up shortly will show that it's possible to remain profitable even with the caps Not a question of profitability but banks ignoring the massive risky sectors and individuals ,better an expensive loan which is available than a cheap loan which is not available ...why are banks auctioning hundreds of vehicles if loans are cheap? They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 2/20/2007 Posts: 767
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tom_boy wrote:mlennyma wrote:obiero wrote:mlennyma wrote:Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well There shall be very little if any amendment to the capping.. Banks results coming up shortly will show that it's possible to remain profitable even with the caps Not a question of profitability but banks ignoring the massive risky sectors and individuals ,better an expensive loan which is available than a cheap loan which is not available ...why are banks auctioning hundreds of vehicles if loans are cheap? spoke like a true tenderpreneur. Such thinking ensures we remain a shithole They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 2/20/2007 Posts: 767
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tom_boy wrote:tom_boy wrote:mlennyma wrote:obiero wrote:mlennyma wrote:Sir invest wrote:Repealing the law not happening any time soon. The Governor can as well increase the CBR to 16% so as to fix the interest rates at 20%. we are living the last days of that law and bank stocks will rally with impunity,the best governor in Africa will not be ignored because this is his reason not to deliver well There shall be very little if any amendment to the capping.. Banks results coming up shortly will show that it's possible to remain profitable even with the caps Not a question of profitability but banks ignoring the massive risky sectors and individuals ,better an expensive loan which is available than a cheap loan which is not available ...why are banks auctioning hundreds of vehicles if loans are cheap? spoke like a true tenderpreneur. Such thinking ensures we remain a shithole. Kindly quote 2 or 3 massive risky sectors with capacity to expand an economy. Contrary to common teaching, wealth is not a product of taking massive risk. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Pay day loans on the riseIf Obiero did it, Who Am I?
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Rank: Member Joined: 7/1/2009 Posts: 256
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Larayna wrote:The banks have deliberately refused to lend, sabotaging the economy so that they justify the rate cap as the cause. Even more infuriating is the banks haven't put an alternative policy on how they will self regulate when it comes to interest rates. Greed for super profits is all they want and care about..
Why have they not come up with policies where Low risk
Borrowers with good credit rating get loans at rates like 10% or less. While risky borrowers pay higher rates?
In UK for instance, you can borrow for as little as 2% and for as high as 3600%
It all depends on ones credit worthiness
In Kenya however, every Dick Tom and Harry are gauged with the same yard stick. Because of the utter ineptness and laziness the bankers. Meaning good creditors are made to offset the banks losses from defaulters and bad creditors
Those here on wazua attacking the interest rate cap are nothing but shareholders desperate for a bumper dividends
You are right on the need for interest rates based on the borrower's credit rating. However there is a limit to how low the rates can go. Perhaps this might help you understand some of the reasons the UK and Kenya cannot have the same rates... https://tradingeconomics...d-kingdom/inflation-cpi
https://tradingeconomics.com/kenya/inflation-cpi
This is just one factor. Default trends, cost of corruption, justice system, political risk, the GOK's penchant for springing surprises that sometimes destroy businesses ( EABL's Keg consumption comes to mind, petrol availability on some occasions) etc all factor into the rates we pay. As a business, you ignore these factors at your own peril.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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My shylock friend tells me business is booming with high-end smart phones as the best collateral
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Wow KCB headed to 70bob!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Angelica _ann wrote:Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct
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: 2/26/2012 Posts: 15,980
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obiero wrote:Angelica _ann wrote:Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct Layman English please "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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