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Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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ngapat wrote:[quote=obiero]Jude Njomo, the brain behind the rate caps says: “Initially, credit was available but unaffordable. Today, credit is affordable but not available” #InterestRateDebate I will ensure that the rate cap is not repealed, via parliament https://www.standardmedi...epeal-interest-rate-law[/quote] That is what happens when the law of demand and supply is not followed. For electricity they say its better to have expensive power than have no power at all. Wonder whether this can also apply to credit. Would we rather have expensive credit or no credit at all. Better no credit than sickeningly expensive credit that cripples industry players such as what we are witnessing
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: 12/11/2006 Posts: 884
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obiero wrote:ngapat wrote:[quote=obiero]Jude Njomo, the brain behind the rate caps says: “Initially, credit was available but unaffordable. Today, credit is affordable but not available” #InterestRateDebate I will ensure that the rate cap is not repealed, via parliament https://www.standardmedi...epeal-interest-rate-law[/quote] That is what happens when the law of demand and supply is not followed. For electricity they say its better to have expensive power than have no power at all. Wonder whether this can also apply to credit. Would we rather have expensive credit or no credit at all. Better no credit than sickeningly expensive credit that cripples industry players such as what we are witnessing There are two sides in this credit market. There is the borrower and the lender. The borrower is looking for cheap credit while the lender is looking for inflation beating returns with minimal risks. The govt has only looked at one side of the equation i.e the borrower. What incentives has the Govt given the lender to make him lend at the rates they are dictating. Is the Govt willing to act a Guarantor of those loans “Invest in yourself. Your career is the engine of your wealth.”
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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CBK rate lowered to 9% at the MPC meeting today 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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Monk wrote:winmak wrote:obiero wrote:murchr wrote:mlennyma wrote:Dead,burial plans underway  Not soo fast. Hold on and observe. Hapa ndio watu hupigwa kumbo Widest disparity in budgets are seen in a pre an immediate post election budget. All populist measures must go It's going to be interesting to see how the SME sector deals with the latest blow, the presumptive tax in Jan 2019, to be able to renew their Business permits. They still have no access to credit from Banks to pay the tax upfront. Single digit lending is on the horizon
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:Spikes wrote:obiero wrote:mlennyma wrote:obiero wrote:murchr wrote:obiero wrote:Angelica _ann wrote:Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct Layman English please The law won’t be reversed to repeal is to abolish/anull a law or an act of parliament. .prophet obiero you mean this word was used wrongly ? I mean that it was a political response to IMF that will not garner real political support in the House. To repeal it cannot be via twitter feeds, this thing is hardcoded in wanjiku who prefers no debt to the mercinary rates that were being bandied by Kenyan banks It should be mercenary. The problem emanates from attending shithole schools where a young bugger used to receive instructions under a tree inside squalid makeshift structures. It was written.. MPs will not support the amendment via orders from above! Anyone still waiting for a repeal? Bank margins continue being squeezed via the main income line being lending.. It's not easy for the Kenyan financial industry right now. Expect more consolidation
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: 3/19/2010 Posts: 3,504 Location: Uganda
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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ngapat wrote:obiero wrote:ngapat wrote:[quote=obiero]Jude Njomo, the brain behind the rate caps says: “Initially, credit was available but unaffordable. Today, credit is affordable but not available” #InterestRateDebate I will ensure that the rate cap is not repealed, via parliament https://www.standardmedi...epeal-interest-rate-law[/quote] That is what happens when the law of demand and supply is not followed. For electricity they say its better to have expensive power than have no power at all. Wonder whether this can also apply to credit. Would we rather have expensive credit or no credit at all. Better no credit than sickeningly expensive credit that cripples industry players such as what we are witnessing There are two sides in this credit market. There is the borrower and the lender. The borrower is looking for cheap credit while the lender is looking for inflation beating returns with minimal risks. The govt has only looked at one side of the equation i.e the borrower. What incentives has the Govt given the lender to make him lend at the rates they are dictating. Is the Govt willing to act a Guarantor of those loans I have also noted, so, who will help @Ngapat to note too. After all, who are you not to get informed and be responsible accordingly,🤗🤔🤧🤕🤓😕🙃 "The MPC noted that inflation expectations were well anchored within the target range, and that economic growth prospects were improving," CBK Governor Patrick Njoroge said on Monday. "Furthermore, economic output was below its potential level, and there was some room for further accommodative monetary policy," Njoroge, who also chairs the MPC added ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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rate cap law will not be repealed but rather it will be mutated. Deposit rate floor will be removed. Cap will remain. 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 law will not be repealed but rather it will be mutated.
Deposit rate floor will be removed. Cap will remain. we wait to see 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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obiero wrote:obiero wrote:Spikes wrote:obiero wrote:mlennyma wrote:obiero wrote:murchr wrote:obiero wrote:Angelica _ann wrote:Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct Layman English please The law won’t be reversed to repeal is to abolish/anull a law or an act of parliament. .prophet obiero you mean this word was used wrongly ? I mean that it was a political response to IMF that will not garner real political support in the House. To repeal it cannot be via twitter feeds, this thing is hardcoded in wanjiku who prefers no debt to the mercinary rates that were being bandied by Kenyan banks It should be mercenary. The problem emanates from attending shithole schools where a young bugger used to receive instructions under a tree inside squalid makeshift structures. It was written.. MPs will not support the amendment via orders from above! Anyone still waiting for a repeal? Bank margins continue being squeezed via the main income line being lending.. It's not easy for the Kenyan financial industry right now. Expect more consolidation Watch and learn. No MP will risk loosing the next term https://www.businessdail...21546-ki208bz/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: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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obiero wrote:obiero wrote:obiero wrote:Spikes wrote:obiero wrote:mlennyma wrote:obiero wrote:murchr wrote:obiero wrote:Angelica _ann wrote:[quote=murchr] Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct Layman English please The law won’t be reversed to repeal is to abolish/anull a law or an act of parliament. .prophet obiero you mean this word was used wrongly ? I mean that it was a political response to IMF that will not garner real political support in the House. To repeal it cannot be via twitter feeds, this thing is hardcoded in wanjiku who prefers no debt to the mercinary rates that were being bandied by Kenyan banks It should be mercenary. The problem emanates from attending shithole schools where a young bugger used to receive instructions under a tree inside squalid makeshift structures. It was written.. MPs will not support the amendment via orders from above! Anyone still waiting for a repeal? Bank margins continue being squeezed via the main income line being lending.. It's not easy for the Kenyan financial industry right now. Expect more consolidation Watch and learn. No MP will risk loosing the next term https://www.businessdail...1546-ki208bz/index.html[/quote] I think the opposite will happen,the bill to repeal/ammend the interest rates cap law will sail through 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:obiero wrote:obiero wrote:obiero wrote:Spikes wrote:obiero wrote:mlennyma wrote:obiero wrote:murchr wrote:obiero wrote:Angelica _ann wrote:Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct Layman English please The law won’t be reversed to repeal is to abolish/anull a law or an act of parliament. .prophet obiero you mean this word was used wrongly ? I mean that it was a political response to IMF that will not garner real political support in the House. To repeal it cannot be via twitter feeds, this thing is hardcoded in wanjiku who prefers no debt to the mercinary rates that were being bandied by Kenyan banks It should be mercenary. The problem emanates from attending shithole schools where a young bugger used to receive instructions under a tree inside squalid makeshift structures. It was written.. MPs will not support the amendment via orders from above! Anyone still waiting for a repeal? Bank margins continue being squeezed via the main income line being lending.. It's not easy for the Kenyan financial industry right now. Expect more consolidation Watch and learn. No MP will risk loosing the next term https://www.businessdail...1546-ki208bz/index.html
I think the opposite will happen,the bill to repeal/ammend the interest rates cap law will sail through Already the signs are ominous.. Talk to your legislative friends, if you have any
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: 11/5/2010 Posts: 2,459
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Any idea when the bill repealing this useless law will be debated ??
Will be harvesting season for our MPs. But the important thing is for the bill to pass and we all go backup yo building the nation.
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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FRM2011 wrote:Any idea when the bill repealing this useless law will be debated ??
Will be harvesting season for our MPs. But the important thing is for the bill to pass and we all go backup yo building the nation. Debate starts tomorrow Wednesday 22 September Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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Ericsson wrote:FRM2011 wrote:Any idea when the bill repealing this useless law will be debated ??
Will be harvesting season for our MPs. But the important thing is for the bill to pass and we all go backup yo building the nation. Debate starts tomorrow Wednesday 22 September August you mean. Formally employed people often live their employers' dream & forget about their own.
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Rank: Elder Joined: 6/23/2009 Posts: 13,502 Location: nairobi
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mlennyma wrote:obiero wrote:obiero wrote:obiero wrote:Sidian, NBK, Family, HF, NIC struggling.. Small banks shall fold Family Bank et al in distress.. You know where you got the information first over a year ago In 2016, I chose to sit out financials where bank stocks nosedived sharply from end year 2016 to mid 2017, but have since regained steadily from Q3 2017. In 2018, only the big banks are showing signs of enjoying the rate cap fruits, primarily due to their deposit composition. It could be the right time to buy back into the tier one bank stocks You have spoken,kcb,equity and nic are by bets with 100bob my exit targets ...the best thing in jubilee gvt you can't oppose what the top has decided to do ......byee rate cap Big banks sucking out life from the smaller ones.. It was written https://mobile.nation.co...23130-72va2fz/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: Elder Joined: 7/26/2007 Posts: 6,514
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Small banks serve no purpose in Kenya except money laundering. Most should close or be absorbed. Business opportunities are like buses,there's always another one coming
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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KulaRaha wrote:Small banks serve no purpose in Kenya except money laundering. Most should close or be absorbed. “This will protect the banks from those who pretend to be banks and engage only in internal lending and money laundering. You are either a bank or a microfinance,” --Njomo
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://www.businessdail...4774-wh3cd2z/index.html
Banks will have to increase their core capital from Sh1 billion to Sh5 billion over the next four years if Parliament adopts new amendments to the Banking Act. Kiambu Town MP Jude Njomo, the architect of the interest rate capping law, wants banks to have minimum capital of Sh2 billion by December 31, 2019, Sh3.5 billion (2020) and Sh5 billion (2021). He wants the changes approved through the Finance Bill, 2018 to create stronger banks. The move is set to force mergers and acquisitions as smaller lenders seek to survive. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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When will we come to a compromise?
We are running to increase petroleum products VAT due to skewed parliament which is still there to kill businesses
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