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Law Capping interest rates
Rank: Member Joined: 2/20/2007 Posts: 767
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[quote=obiero]Let me leave this here https://www.businessdail...0530-h9xgfbz/index.html[/quote] Tough situation but removal of rate caps will only make things worse. 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: Elder Joined: 12/7/2012 Posts: 11,908
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These types of borrowing have existed historically ever and ever nothing new! 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: 13,501 Location: nairobi
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Angelica _ann wrote:These types of borrowing have existed historically ever and ever nothing new! Not at current percentages.. Data is to be understood and not fought
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: 13,501 Location: nairobi
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obiero wrote:obiero wrote:whiteowl wrote:obiero wrote:obiero wrote:obiero wrote:obiero wrote:obiero wrote:obiero wrote:sparkly wrote:obiero wrote:MaichBlack wrote:Ebenyo wrote:obiero wrote:I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. Smaller banks will fold Here we are... Family fires it's staff https://citizentv.co.ke/...fs-to-cut-costs-143841/
and then Sidian lays off 108 workers http://www.businessdaily...9550-3428588-151f209z/, then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html
First Community Bank let go of a quarter of its staff http://www.the-star.co.k...osed-number-of_c1451638
And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html
Sidian, NBK, Family, HF, NIC struggling.. Small banks shall fold The goose is cooked for NBK NBK has 9 lives,it was supposed to go down even before Dubai bank but its still standing. @whiteowl NBK in its current form and shape cannot survive.. It must be absorbed by a real bank. Smaller banks must close shop unless the caps are reversed http://www.nation.co.ke/...9774-14pykoy/index.html
Boom boom pow. Small banks have nowhere to turn Another one down.. HF is likely to be eaten up by Equity
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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Coop bank will swallow who? Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: New-farer Joined: 11/28/2018 Posts: 42 Location: Nairobi
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Ericsson wrote:Coop bank will swallow who? Haha, maybe akina Ekeza and Urithi sacco
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Rank: New-farer Joined: 5/19/2014 Posts: 68 Location: Migori
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drogon wrote:Ericsson wrote:Coop bank will swallow who? Haha, maybe akina Ekeza and Urithi sacco There are rumours that coop bank are the ones behind sidian bank troubles they never wanted mwalimu sacco to get their own bank. Learning to sit on my hands
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Rank: New-farer Joined: 11/28/2018 Posts: 42 Location: Nairobi
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ombaalbt wrote:drogon wrote:Ericsson wrote:Coop bank will swallow who? Haha, maybe akina Ekeza and Urithi sacco There are rumours that coop bank are the ones behind sidian bank troubles they never wanted mwalimu sacco to get their own bank. I think you mean SPIRE bank. Sidian ni ile ya Centum.
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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drogon wrote:ombaalbt wrote:drogon wrote:Ericsson wrote:Coop bank will swallow who? Haha, maybe akina Ekeza and Urithi sacco There are rumours that coop bank are the ones behind sidian bank troubles they never wanted mwalimu sacco to get their own bank. I think you mean SPIRE bank. Sidian ni ile ya Centum. They should make an acquisition of a stake in Spire bank to bring Mwalimu back to their stable and teach them a lesson Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Tier 2 and below banks in distress that have so far been swallowed; Jamii Bora taken over by CBA NBK--KCB in process Those still hanging; Spire Bank Consolidated Bank Housing Finance Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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Henry Rotich wrote:“The aim of the interest rate capping introduced in September 2016 was to reduce the cost of borrowing, increase access to credit and higher return to savings its now going to 3 years and the law has had the opposite effect with micro, small and medium business starved of credit and the loan book of small banks becoming smaller,”
“Conscious of the need to spur business activity, I will in this year’s finance bill be proposing repeal of section 33b of the banking act 2016, I am convinced this will unlock credit to the private sector,” Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Member Joined: 9/11/2015 Posts: 244 Location: Thika
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MPs are major beneficiaries of the law capping interest rates. They are viewed as credit worthy, and the law caps the interest they pay to banks. Some owe banks hundreds of millions or intend to borrow such huge figures. They certainly can't pass that law because they will be puking on their shoes. Since men have learned to shoot without missing, I have learned to fly without perching
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Rank: Member Joined: 11/15/2010 Posts: 454 Location: Nairobi
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Jon Jones wrote:MPs are major beneficiaries of the law capping interest rates. They are viewed as credit worthy, and the law caps the interest they pay to banks. Some owe banks hundreds of millions or intend to borrow such huge figures. They certainly can't pass that law because they will be puking on their shoes. I agree. But then again, we know most of our MPs serves at behest of their kingpin, if asked to commit suicide for their boss they would do so without second thought. ....He who began a good work in you will carry it on to completion..
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows. The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. Dumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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Fyatu wrote:Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows.
The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. nobody should touch that law.greedy banks should not armstwist anyone. punda amecheka
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Rank: Elder Joined: 6/23/2009 Posts: 13,501 Location: nairobi
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newfarer wrote:Fyatu wrote:Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows.
The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. nobody should touch that law.greedy banks should not armstwist anyone. We are operating under a new normal.. Let us live with it
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 4/23/2014 Posts: 909
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Fyatu wrote:Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows.
The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. True the rate cap has helped us against the greedy loan shark banks, and I'm sure it wount go through parliament. The problem is according to the judgement around February, where a judge actually called it unconstitutional and illegal, and gave parliament a year to correct the law otherwise it would be repealed without any further court appearance(i.e returns to its original state). My issue is we have forgotten about that ruling and our chicken memory governors and mp's will not remember to do anything about the law. I can bet you nnext year the interest rates will most likely increase, and we shall have no one to blame but ourselves for not following up on the ruling. “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Veteran Joined: 4/23/2014 Posts: 909
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HaMaina wrote:Fyatu wrote:Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows.
The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. True the rate cap has helped us against the greedy loan shark banks, and I'm sure it wount go through parliament. The problem is according to the judgement around February, where a judge actually called it unconstitutional and illegal, and gave parliament a year to correct the law otherwise it would be repealed without any further court appearance(i.e returns to its original state). My issue is we have forgotten about that ruling and our chicken memory governors and mp's will not remember to do anything about the law. I can bet you nnext year the interest rates will most likely increase, and we shall have no one to blame but ourselves for not following up on the ruling. Here is the link. https://www.businessdail...6434-6a9knqz/index.html “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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HaMaina wrote:HaMaina wrote:Fyatu wrote:Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows.
The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. True the rate cap has helped us against the greedy loan shark banks, and I'm sure it wount go through parliament. The problem is according to the judgement around February, where a judge actually called it unconstitutional and illegal, and gave parliament a year to correct the law otherwise it would be repealed without any further court appearance(i.e returns to its original state). My issue is we have forgotten about that ruling and our chicken memory governors and mp's will not remember to do anything about the law. I can bet you nnext year the interest rates will most likely increase, and we shall have no one to blame but ourselves for not following up on the ruling. Here is the link. https://www.businessdail...6434-6a9knqz/index.html Hence the proposal by Henry Rotich. Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Veteran Joined: 4/23/2014 Posts: 909
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Ngalaka wrote:HaMaina wrote:HaMaina wrote:Fyatu wrote:Uhuru Kenyatta is the man squarely behind the rate cap. You cannot tell me that he does not know that things have slowed down since the cap came to effect.He knows.
The interest rate cap will be repealed when he leaves office post 2022. Hiyo ingine yote ni kelele. True the rate cap has helped us against the greedy loan shark banks, and I'm sure it wount go through parliament. The problem is according to the judgement around February, where a judge actually called it unconstitutional and illegal, and gave parliament a year to correct the law otherwise it would be repealed without any further court appearance(i.e returns to its original state). My issue is we have forgotten about that ruling and our chicken memory governors and mp's will not remember to do anything about the law. I can bet you nnext year the interest rates will most likely increase, and we shall have no one to blame but ourselves for not following up on the ruling. Here is the link. https://www.businessdail...6434-6a9knqz/index.html Hence the proposal by Henry Rotich. Last 2 years budgets there have been similar proposals, this time its there to close our eyes and forget the judgement deadline. “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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