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Law Capping interest rates
Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Tomorrow will be green again on the banking stocks
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Rank: Member Joined: 6/6/2016 Posts: 165 Location: Nairobi
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buy the rumour sell the news.. tomorrow will be a red day on banking stocks
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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FUNKY wrote:Tomorrow will be green again on the banking stocks Kaching 
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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FUNKY wrote:BREAKING NEWS: Interest rate caps are set to be repealed. This is following the @NAssemblyKE failure to raise a two-thirds majority to oppose President Uhuru Kenyatta's reservations on interest rate caps. https://t.co/egfHuRgRac ^ Where were they ever going to get the 2/3 majority!!?? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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MaichBlack wrote:Ericsson wrote:Hon Sam Atandi @SamuelAtandi
Am now ready to support repeal of interest cap law with a singular amendment to exempt its application from the existing loans/facilities You don't make demands from a position of weakness. They should have made the amendments much earlier when discussing the bill. The president/treasury/CBK has them by balls. Chances of them raising 2/3 majority are slim to none.
The amendment will only be done if the President wants it to be.
MPigs made the wrong move. Recovering from that move is tough!! Habari ndiyo hiyo!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/21/2010 Posts: 6,186 Location: nairobi
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MaichBlack wrote:MaichBlack wrote:Ericsson wrote:Hon Sam Atandi @SamuelAtandi
Am now ready to support repeal of interest cap law with a singular amendment to exempt its application from the existing loans/facilities You don't make demands from a position of weakness. They should have made the amendments much earlier when discussing the bill. The president/treasury/CBK has them by balls. Chances of them raising 2/3 majority are slim to none.
The amendment will only be done if the President wants it to be.
MPigs made the wrong move. Recovering from that move is tough!! Habari ndiyo hiyo!!! bad laws don't last  "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 2/22/2009 Posts: 2,449 Location: Africa
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I'm so sunk. Took a loan a couple of months ago. Now waiting to see how my bank will shaft me.
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Rank: Elder Joined: 6/23/2009 Posts: 13,592 Location: nairobi
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Shak wrote:I'm so sunk. Took a loan a couple of months ago. Now waiting to see how my bank will shaft me. Ukichengwa tulia
COOP 140,000 ABP 15.75; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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Shak wrote:I'm so sunk. Took a loan a couple of months ago. Now waiting to see how my bank will shaft me. You have a month or two to come up with a plan. The banks will chill a bit before significantly raising the rate on old loans to avoid "we told you so" scenarios. But by January - February my brother/sister... Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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MaichBlack wrote:FUNKY wrote:https://www.nation.co.ke/news/MPs-to-defy-Uhuru-over-loan-rate-caps/1056-5315586-15j4ggtz/index.html ^ Good luck to them Marshalling the required 2/3 majority!! They are just politicking and they know it. Most of these cowards will not even be in the house when the vote is taken. CBK + Treasury + President vs MPigs!!! Good luck with that. And the President just requires 1/3 (which includes all absentees!!). Do the Math. I told you so!!! Only 161 of them were in the house!! These fellows are very predictable. You have to understand the pattern in the madness. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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MaichBlack wrote:muandiwambeu wrote:MaichBlack wrote:maka wrote:bird_man wrote:guru267 wrote:Impunity wrote:bird_man wrote:Impunity wrote:bird_man wrote:So KCBMpesa is not lending anymore and Equity has reduced the Equitel loan limits! What are the new limits? Have they also reduced the Ezzyloan limits? Yes they have...from 30K to zero and with no communication even. As is, one can only borrow mshwari given KCB is also out of the loan game for now. I still think interest capping is a mistake. Accessing unsecured loans right now is impossible..so what happens to us juakali people with no assets to secure? Use welding machine as a collateral. The Banks will choke the living daylights out of Wanjiku until there are protests to reverse this useless law... Meanwhile they will shift focus to corporate customers, high net worth individuals, T bills and regional subsidiaries... The Act will be reversed...perhaps after elections.It's very good for employees with high salaries and structured business. Mama mboga and the likes cannot meet eligibility criteria anymore. With UK and WSR in power this thing will never be reversed... These are exactly the people who will reverse the law. This was 100% political decision and once UK is back in the house on the hill, be ready for the reversal. I have a feeling the law will not see the end of 2017. that will cause post decappiñg violence equatable to pev or worse. walking on fired charcoals it is. These are the same people who introduced taxes on milk, medicine, electricity, water, juice, reduced taxes for cars bought by the rich and increased for those bought by the middle class and anything else they could imagine. They also increased taxes on most of the other things including fuel which affects almost everything else. All this was done without batting an eyelid and despite campaign promises to reduce the cost of living and the cost of doing in Kenya - with lower power cost having featured prominently. No one bothered to explain the reasoning to Kenyans. Reversing the rate cap will done na watu waende wakakule nyama choma and life continues. Na wakumeza mate wameze!! #1231 Posted : Wednesday, September 21, 2016 7:08:56 PM (Page 62) Well, it took 2 years longer but not for lack of trying... Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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MaichBlack wrote:One more thing, people taking loans should know that if (of course in my head I am saying when) the rate caps are removed/the law repealed, the new rates will apply immediately and to old loans too as it happened this time round. Talk about a knife that cuts both ways.
Those old enough will remember the big sufuria a neighbour gave to Abunuasi and he returned it together with a small one and he told the neighbour his sufuria had given birth. The next time Abunuasi borrowed the big sufuria he did not return it. He told the neighbour it had died. And there is nowhere the neighbour could take him because it was proved that anything that can give birth can also die.
Moral of the story: Take loans but if your loan goes to 2018 and beyond, you had better have a plan on how you will clear the loan if (when!) the law is repealed and rates go through the roof.
Or you can dismiss my advice as wishful thinking and borrow as much as you want without a quick emergency exit plan. It is a free country. And I could also be wrong you know! #1233 Posted : Wednesday, September 21, 2016 7:18:29 PM I warned everyone 3 years ago. I hope people listened. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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MaichBlack wrote:KulaRaha wrote:watesh wrote:muandiwambeu wrote:watesh wrote:CBR has been lowered. Another hit in the nuts for the banks.... civic awareness through corporate action. if holding financials, ur out for a nasty pepper tear gassing treat. it gone hurt for a long time. Bp, sukari n salts sitapanda if u r inside now onwards. this is battle of the titans. keep distance . who wins? banks, mpc, mpigs or kamwana. watching from the sides. So true....you know last time i checked my account i had a loss of 500k just from bank stocks. Am out of bank stocks till i calculate Q4 2016 results and they announce Q1 2017. There were guys buying a couple of weeks ago, claiming prices would be back to normal....  I am a buyer too. And I will add more and more between now and the elections.
Banks will go nowhere and will not collapse. No sane government will let big banks collapse. They go to the extent of Bailing them out from the US to Greece!
This might not be politically correct to say but when push comes to shove, banks are more important than you!! Pole.Greece - See how much went to the banks and how much went to the 'citizens'Saving American Banks that screwed themselves!!!And mind you, according to an article published by forbes in July 2015 quoting The Special Inspector General of TARP (Troubled Asset Relief Program), the $700 Billion is just a tip of the iceberg!! The total commitment of government to the ongoing bailout program is $16.8 Trillion dollars and $4.6 trillion had already been paid out by July last year. In Kenya, if all that is required is to repeal the law, it will be done before breakfast!!! #1236 Posted : Wednesday, September 21, 2016 7:53:36 PM Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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snifadog wrote:buy the rumour sell the news.. tomorrow will be a red day on banking stocks How now!!!??? Market about to open!!! Wait and see the levels of green you will see. Dark green all the way to the bank!!! You can take this to any bank near you!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 4/21/2015 Posts: 151
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MaichBlack wrote:snifadog wrote:buy the rumour sell the news.. tomorrow will be a red day on banking stocks How now!!!??? Market about to open!!! Wait and see the levels of green you will see. Dark green all the way to the bank!!! You can take this to any bank near you!!! Before the caps, banks had and still have NPLs to deal with. In our ailing economy green will not last.Capping govt local borrowing could have been the next experiment in keeping with trial and error regime.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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AndyC wrote:MaichBlack wrote:snifadog wrote:buy the rumour sell the news.. tomorrow will be a red day on banking stocks How now!!!??? Market about to open!!! Wait and see the levels of green you will see. Dark green all the way to the bank!!! You can take this to any bank near you!!! Before the caps, banks had and still have NPLs to deal with. In our ailing economy green will not last.Capping govt local borrowing could have been the next experiment in keeping with trial and error regime. My biggest question is can the govt at its current state afford to pay a 100 - 200 bps uptick in coupon payment? I would so love to see how this plays out... possunt quia posse videntur
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Rank: Elder Joined: 7/22/2009 Posts: 7,497
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AndyC wrote:MaichBlack wrote:snifadog wrote:buy the rumour sell the news.. tomorrow will be a red day on banking stocks How now!!!??? Market about to open!!! Wait and see the levels of green you will see. Dark green all the way to the bank!!! You can take this to any bank near you!!! Before the caps, banks had and still have NPLs to deal with. In our ailing economy green will not last.Capping govt local borrowing could have been the next experiment in keeping with trial and error regime. True. Nobody is suggesting ALL problems have been solved. The economy is still in a terrible shape. But one headache for the banks - the biggest after the economy - has been sorted and sorted in the best possible way to the. No conditions. Of course, it goes without saying that there will be a rally as people chase and then a pull back as people give up on the chase and people start cashing in. But the pull back is not happening today. Not a chance!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,606
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I wish I would be clapping for the repeal of rate caps but this is where Zambia was some years back. There are some insane moves from GoK that are quite unnerving. Exhibit 1 Quote:KRA has ordered distillers not to sell alcoholic spirits in 250 millilitre containers at below Sh150, forcing manufacturers of drinks targeted at the low-end market to increase their prices. The taxman reckons that retailers selling the 250 millilitre spirit at below Sh150 are tax cheats and that production expenses and duty cost do permit alcohol to be sold at below the KRA price. However, the Competition Authority of Kenya (CAK) has sought clarity over the KRA order, pointing out that it could breach sections of the antitrust law that bars the setting of binding prices. https://www.businessdail...8312-uetij5z/index.html
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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wukan wrote:I wish I would be clapping for the repeal of rate caps but this is where Zambia was some years back. There are some insane moves from GoK that are quite unnerving. Exhibit 1 Quote:KRA has ordered distillers not to sell alcoholic spirits in 250 millilitre containers at below Sh150, forcing manufacturers of drinks targeted at the low-end market to increase their prices. The taxman reckons that retailers selling the 250 millilitre spirit at below Sh150 are tax cheats and that production expenses and duty cost do permit alcohol to be sold at below the KRA price. However, the Competition Authority of Kenya (CAK) has sought clarity over the KRA order, pointing out that it could breach sections of the antitrust law that bars the setting of binding prices. https://www.businessdail...8312-uetij5z/index.html
Jeez! KRA is now setting retail prices? There is madness and then there is this. Unfortunately, governments only ever move towards more tyranny till the people step up to resist. This is especially more pronounced for an insatiable one like GoK where it runs roughshod over everyone and everything standing in its revenue maximization and fiscal indisciplined path. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 12/4/2009 Posts: 10,744 Location: NAIROBI
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https://www.businessdail...39016-7gg8gm/index.html
The biggest challenge for banks post interest rates cap law repeal will be non performing loans. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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