Thanks Angelica. Which stocks would you recommend someone to pick with a view to selling in a years time

The two banks are poised to take most of the banking for county business. KCB has taken over a loan advanced to Nairobi County by Member thereby securing a deal with Nairobi county. Member has on the other hand taken over Nyeri county!

And the rush for County money is officially on the table.

Clearly Equity din’t want to retain the Non Performing Loan given that they refused to sit down with City Hall to renegotiate the facility. KCB, with its bad debt history, may have just bagged another bad one and at a very concessional rate of 13% against the 18.5% charged by Equity Bank. Shrewd Equity have gotten rid of the problematic account and can now place the funds in a safe 10 year T-Bond at 12% or lend to mwananchi and corporates at 20%-18%.

I think @mwekezaji has nailed it. Equity has better things to do than be held hostage by bad debtors. I am not sure what portion of the Loan to CCN has been NPL'd but Equity [in 2Q 2014] can write-back the late or unpaid interest and any provisions made.

KCB may make fees, etc from the CCN deal but it comes with headaches as well. And nothing stops Equity for fighting for other (more) profitable business from CCN.

@streetwise, this should shed some more light on the kind of business KCB has been taking up ---> http://www.businessdailyafrica....52/-/vy3p4k/-/index.html