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Law Capping interest rates
Rank: Member Joined: 7/10/2014 Posts: 145 Location: Nairobi
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obiero wrote:Monk wrote:Larayna wrote:Kenyan Banks among the world's most profitable LINKDoes this confirm the clamour for repealing this law is driven by nothing but greed for super profits The law was not about checking profitability of banks. It was about making credit affordable. Unfortunately, they did not foresee how it would affect credit availability. A free market economy operates on a willing buyer willing seller principle. You cannot force a seller to trade, otherwise you get shortages of goods and services. Ask coffee farmers and the infamous law prohibiting uprooting coffee trees... Supplier power in Michael Porter five forces https://www.businessdail...25160-1p5s9sz/index.html"Blowing out someone else candle won't make yours shine brighter"-Anonymous
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Meanwhile https://www.businessdail...25456-8gbw6hz/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: Member Joined: 10/3/2008 Posts: 101
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Monk wrote:Larayna wrote:Kenyan Banks among the world's most profitable LINKDoes this confirm the clamour for repealing this law is driven by nothing but greed for super profits The law was not about checking profitability of banks. It was about making credit affordable. Unfortunately, they did not foresee how it would affect credit availability. A free market economy operates on a willing buyer willing seller principle. You cannot force a seller to trade, otherwise you get shortages of goods and services. Ask coffee farmers and the infamous law prohibiting uprooting coffee trees... Well said but is it not the SUPER PROFITS the main reason these banks are opposed to the Rate cap ama shida yao ni nini?. They have been bemoaning the rate cap as a reason for their dwindling profits. They operate in a cartel. They have deliberately refused to lent (do Business) and use the rate cap as an excuse. Well if the rate cap was to stay another 2 years, These banks will start chasing us to come and borrow. The profits they are making NOW is from their old loan books. Once they dry out they will lent. I know world bank has been coming with it Theories in the name of policies about rate cap. When I hear World Bank and IMF, It reminds me of SAPS IN THE 90S that made African countriies the shitholes they are today
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Rongla wrote:Monk wrote:Larayna wrote:Kenyan Banks among the world's most profitable LINKDoes this confirm the clamour for repealing this law is driven by nothing but greed for super profits The law was not about checking profitability of banks. It was about making credit affordable. Unfortunately, they did not foresee how it would affect credit availability. A free market economy operates on a willing buyer willing seller principle. You cannot force a seller to trade, otherwise you get shortages of goods and services. Ask coffee farmers and the infamous law prohibiting uprooting coffee trees... Well said but is it not the SUPER PROFITS the main reason these banks are opposed to the Rate cap ama shida yao ni nini?. They have been bemoaning the rate cap as a reason for their dwindling profits. They operate in a cartel. They have deliberately refused to lent (do Business) and use the rate cap as an excuse. Well if the rate cap was to stay another 2 years, These banks will start chasing us to come and borrow. The profits they are making NOW is from their old loan books. Once they dry out they will lent. I know world bank has been coming with it Theories in the name of policies about rate cap. When I hear World Bank and IMF, It reminds me of SAPS IN THE 90S that made African countriies the shitholes they are today Why aren't we complaining with the same strength on the wastage of public funds by government Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Ericsson wrote:Rongla wrote:Monk wrote:Larayna wrote:Kenyan Banks among the world's most profitable LINKDoes this confirm the clamour for repealing this law is driven by nothing but greed for super profits The law was not about checking profitability of banks. It was about making credit affordable. Unfortunately, they did not foresee how it would affect credit availability. A free market economy operates on a willing buyer willing seller principle. You cannot force a seller to trade, otherwise you get shortages of goods and services. Ask coffee farmers and the infamous law prohibiting uprooting coffee trees... Well said but is it not the SUPER PROFITS the main reason these banks are opposed to the Rate cap ama shida yao ni nini?. They have been bemoaning the rate cap as a reason for their dwindling profits. They operate in a cartel. They have deliberately refused to lent (do Business) and use the rate cap as an excuse. Well if the rate cap was to stay another 2 years, These banks will start chasing us to come and borrow. The profits they are making NOW is from their old loan books. Once they dry out they will lent. I know world bank has been coming with it Theories in the name of policies about rate cap. When I hear World Bank and IMF, It reminds me of SAPS IN THE 90S that made African countriies the shitholes they are today Why aren't we complaining with the same strength on the wastage of public funds by government We are..
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: 6/23/2009 Posts: 13,502 Location: nairobi
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obiero wrote:wukan wrote:[quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...y-kenya-is-broke-192961/
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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obiero wrote:obiero wrote:[quote=wukan][quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/[/quote] I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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IMF says Kenya Govt has requested for a 6-month extension of the $1.5B credit facility subject to Rate Cap Review Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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winmak wrote:obiero wrote:obiero wrote:[quote=wukan][quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/[/quote] I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? Only prayer and fasting will save us
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 7/1/2009 Posts: 256
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obiero wrote:winmak wrote:obiero wrote:obiero wrote:[quote=wukan][quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/[/quote] I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? Only prayer and fasting will save us Farming? Food after all is the one thing you cannot forego. Forex would not hurt either, if it's under the mattress.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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winmak wrote:obiero wrote:obiero wrote:[quote=wukan][quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/[/quote] I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? We are still in the early days so don't worry govt will pay MAkiba. We still have favourable winds i.e. the dollar is still in weakening phase, US inflation still yet to pick up. The fan is just warming up. For wanjiku the thing is to stay in touch with your rural folks they become a source of cheap food once inflation picks up. I reckon stocks will hedge against inflation better than forex.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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wukan wrote:winmak wrote:obiero wrote:obiero wrote:[quote=wukan][quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/[/quote] I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? We are still in the early days so don't worry govt will pay MAkiba. We still have favourable winds i.e. the dollar is still in weakening phase, US inflation still yet to pick up. The fan is just warming up. For wanjiku the thing is to stay in touch with your rural folks they become a source of cheap food once inflation picks up. I reckon stocks will hedge against inflation better than forex. Stocks simply reprice to keep up with inflation they do not however change a bear into a bull when a currency depreciates. Coupled with the expected dry out of inflows into a currency that is losing ground, the NSE will be in winter season. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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lochaz-index wrote:wukan wrote:winmak wrote:obiero wrote:obiero wrote:[quote=wukan][quote=obiero]Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html[/quote] It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/[/quote] I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? We are still in the early days so don't worry govt will pay MAkiba. We still have favourable winds i.e. the dollar is still in weakening phase, US inflation still yet to pick up. The fan is just warming up. For wanjiku the thing is to stay in touch with your rural folks they become a source of cheap food once inflation picks up. I reckon stocks will hedge against inflation better than forex. Stocks simply reprice to keep up with inflation they do not however change a bear into a bull when a currency depreciates. Coupled with the expected dry out of inflows into a currency that is losing ground, the NSE will be in winter season. Agreed. The repricing is really what will keep food on the table for a middle class wanjiku. There are no fundamentals for a bull run electricity and cement consumption growth rates already show weakness.
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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wukan wrote:lochaz-index wrote:wukan wrote:winmak wrote:obiero wrote:obiero wrote:wukan wrote:obiero wrote:Quote verbatim in today's daily "Government lending up.The CBK data also shows that while private sector credit growth has fallen, banks have significantly increased their lending to government. Credit to government grew 7.1 per cent on an annualised basis at the end of March, recovering from negative growth in the second half of 2016. Credit to other public sector borrowers such as parastatals and local (county) government units grew by 28.3 per cent in the period." Full link http://www.businessdaily...993596-jvq3rx/index.html The making of a Greek tragedy. Private sector recession versus public sector big appetite. It never ends well but still early days. The free secondary education policy promise will be the end of us. GoK already asking for additional 4.8B via makiba II http://www.businessdaily...93800-t30u03/index.html
It was written kenya becomes greece https://citizentv.co.ke/...-kenya-is-broke-192961/
I hope these govt pays our mAkiba2 on 11th. ION, how does a Wanjiku protect oneself from a Greek meltdown? change money to forex? reduce liquidity to fixed assets? which assets best withstand a depression? We are still in the early days so don't worry govt will pay MAkiba. We still have favourable winds i.e. the dollar is still in weakening phase, US inflation still yet to pick up. The fan is just warming up. For wanjiku the thing is to stay in touch with your rural folks they become a source of cheap food once inflation picks up. I reckon stocks will hedge against inflation better than forex. Stocks simply reprice to keep up with inflation they do not however change a bear into a bull when a currency depreciates. Coupled with the expected dry out of inflows into a currency that is losing ground, the NSE will be in winter season. Agreed. The repricing is really what will keep food on the table for a middle class wanjiku. There are no fundamentals for a bull run electricity and cement consumption growth rates already show weakness. Kaza mishipi na chunga mifuko
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 10/3/2008 Posts: 101
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KCB CEO Oigara “We are willing to give up some sector limits. For instance, mortgage rates to students straight after campus can be capped at certain levels. This model works in other markets. It can work here too.”
Just wondering how many Students (New graduates) takes up mortgages. Can he put something sensible on the table.
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Rongla wrote:KCB CEO Oigara “We are willing to give up some sector limits. For instance, mortgage rates to students straight after campus can be capped at certain levels. This model works in other markets. It can work here too.”
Just wondering how many Students (New graduates) takes up mortgages. Can he put something sensible on the table. Most Kenyans are against bank behavior prior to the rate cap law and this review will not sit well with the population
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 11/7/2017 Posts: 186 Location: Nairobi
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Rongla wrote:KCB CEO Oigara “We are willing to give up some sector limits. For instance, mortgage rates to students straight after campus can be capped at certain levels. This model works in other markets. It can work here too.”
Just wondering how many Students (New graduates) takes up mortgages. Can he put something sensible on the table. This is like some of those promises we make to kids, if they get more than specific marks in their performance. Knowing fully well the kid has zilch potential to attain the said grades.... 
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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Stiffler wrote:Rongla wrote:KCB CEO Oigara “We are willing to give up some sector limits. For instance, mortgage rates to students straight after campus can be capped at certain levels. This model works in other markets. It can work here too.”
Just wondering how many Students (New graduates) takes up mortgages. Can he put something sensible on the table. This is like some of those promises we make to kids, if they get more than specific marks in their performance. Knowing fully well the kid has zilch potential to attain the said grades.... Sad. Even the bankers know that they were profiteering
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: 7/26/2007 Posts: 6,514
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rate cap, no rate cap, no difference, won't increase access to credit either way. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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KulaRaha wrote:rate cap, no rate cap, no difference, won't increase access to credit either way. But will enable GoK/Rotich access to $1.5bn from IMF Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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