Just noticed that NIC have been crediting interest every end month on my savings account Nice. I think kitambo the amounts were to negligible to notice...

Nahama leo

How are they online ? Same bank you use for Bill /Bond purchase ?
Huko kwa member kunakujifichio nyingi!

I'd say we relax and give it atleast 2 years after the general elections. The effect of elections would have greatly worn off and there would have been sufficient time for the rest of the players in the financial system to adjust.

If banks are directing more money to GK securities, then it begs a number of questions,
1) Is GK borrowing growing at a rate to swallow up the excess funds or are the banks crowding out other investors and driving the rates down?
2) If banks are crowding out other debt investors, then where is that 'excess money' from the investors going to?

GK has a significant influence in a few local banks. Is there the possibility of also intervening indirectly to make the cartels in the banking sector behave properly? Of course there is. Create a fund and channel through these banks, for a small fee, money to Credit-worthy SMEs. Will banks in the long run continue to ignore the wider spreads from direct lending in favour of admin fees gained from running the fund (even with loan loss provisions considered)? Banks will eventually have to cave and stop indiscriminate cutting of lending.

GK has tried intervening in the energy sector (where there have been cartels) indirectly through National Oil and also directly through the fuel pricing formular and I would say with good success.

The pain that is currently being faced from the rate cap is because the whole 'money system' has not adjusted. The system is still in shock from the rate cap and has not adjusted.

What I am opposed to greatly is the notion that the only adjustment is reversal of caps (so that cartels take us again?) Banks should continue to pick out good borrowers and lend and then take the rest of the money to GK securities. These shenanigans of punishing everyone with exhorbitant rates because of lending indiscriminately can't continue.

@Obi 1 Kanobi... thank you for posting that link. We will continue to have alternative facts.

You guys have such a crazy sense of entitlement!!!

Nobody owes you a loan!!! Nobody forces you to take a loan!! You take yourself to the bank, fill in forms and get the loan knowing the rates.

Nobody forces you to keep your money in the bank!! Take your money wherever you want - Sacco, Stocks, T Bills, Invest bla bla bla. Don't start crying like the only place you can put your money is in a bank!

Please Note: It is true banks pay low interest rates on deposits and charge high interest on loans. But it is a free market. You don't have to keep your money there or borrow from there. People in Chamas and Saccos know this!! Vote with your legs. Otherwise soon you will be demanding for legislation to reduce accommodation and food prices at Kempiski!!!

Harsh but true!!!

I think this is a question of supply and demand. I think the banks are currently working with what they have in their loan book and carefully given out cash to people they consider less risky. They may not be able to sustain the same without going back to the customer.
When Credit becomes hard to get for the Normal mwananchi, they will develop a means to survive. Some will grow financially and eventually refuse to take credit all together. It just a matter of time before the banks comes begging for people to take Credit.

Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad.

Where have you been dude? Giro, Habib..

Capping in a free market...LOL. Just as was predicted, small banks folding up with accompanying job losses. It would be laughable were it not so sad.