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Law Capping interest rates
Rank: Elder Joined: 7/22/2009 Posts: 7,872
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kaka2za wrote:Mkondoa Macho wrote:If banks continue denying Wanjiku big loans, I think the stock market will take a hit because Wanjiku will be forced to liquidate her holdings to finance business ventures, Banks have never given Wanjiku big loans! And Wanjiku doesn't have enough skin in the Stock market to make it take a hit. Most of what she had she already panic sold in 2016. And most small business owners invest all they have in their businesses and the occasional kaplot. Very few of them have significant holdings in the NSE. And it is for a good reason. They believe being in business, they can multiply their money faster than the NSE. And given the nature of their businesses, they have no surplus left after re-investing in the business. 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: 8/28/2015 Posts: 1,247
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Mkondoa Macho wrote:If banks continue denying Wanjiku big loans, I think the stock market will take a hit because Wanjiku will be forced to liquidate her holdings to finance business ventures, Point on. Wanjiku does not live in utopia. Price movements many a times are determined by movement of a thin fraction of the entire available stocks/ shares of a firm. Value investors, rarely sellout and at worst, at a discount unless for loss stop moves. Otherwise stock market is free so long as u have cdsc and can afford 100 pieces. Firmly noted. Further applies across the board too. Suppose further ur harvest time (that long ka plan of yours) came mature today and you did not have plan B (a bankloan to keep u a float) would you sell? Cash is king, if you weren't set ablaze by this caps thing, but be ready to weather the storm if ready to join the bandwagon. The road ahead is slime slippery. Why lie if you can cheat men.....  ,Behold, a sower went forth to sow;....
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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Meanwhile, in other news: "Banks defy interest rate caps to grow profits by 6 per cent"Could these be the profits of doom that we have been warned about? "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Too early to tell the impact of interest caps on profitability If Obiero did it, Who Am I?
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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Swenani wrote:Too early to tell the impact of interest caps on profitability Maybe, but the trend is clearly disabusing our resident doom mongers, no? In any case I would personally bet on the talent most of the big banks have on board. It will take a systemic disaster before the likes of Mwangi, Oigara, Muriuki et al lose serious money. By the time such happens, we shall have bigger things to worry about, like impending economic depression. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Elder Joined: 6/23/2009 Posts: 14,256 Location: nairobi
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Wakanyugi wrote:Swenani wrote:Too early to tell the impact of interest caps on profitability Maybe, but the trend is clearly disabusing our resident doom mongers, no? In any case I would personally bet on the talent most of the big banks have on board. It will take a systemic disaster before the likes of Mwangi, Oigara, Muriuki et al lose serious money. By the time such happens, we shall have bigger things to worry about, like impending economic depression. The capping was needed, point blank period
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Rank: Veteran Joined: 11/19/2010 Posts: 1,308 Location: nairobi metropolitan
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obiero wrote:Wakanyugi wrote:Swenani wrote:Too early to tell the impact of interest caps on profitability Maybe, but the trend is clearly disabusing our resident doom mongers, no? In any case I would personally bet on the talent most of the big banks have on board. It will take a systemic disaster before the likes of Mwangi, Oigara, Muriuki et al lose serious money. By the time such happens, we shall have bigger things to worry about, like impending economic depression. The capping was needed, point blank period Tukutane hapa next year wakati kama huu.  The banks had already made profits for this year by the time rate cap came in. Democracy does not belong to the dead
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Rank: Elder Joined: 6/23/2009 Posts: 14,256 Location: nairobi
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githundi wrote:obiero wrote:Wakanyugi wrote:Swenani wrote:Too early to tell the impact of interest caps on profitability Maybe, but the trend is clearly disabusing our resident doom mongers, no? In any case I would personally bet on the talent most of the big banks have on board. It will take a systemic disaster before the likes of Mwangi, Oigara, Muriuki et al lose serious money. By the time such happens, we shall have bigger things to worry about, like impending economic depression. The capping was needed, point blank period Tukutane hapa next year wakati kama huu. The banks had already made profits for this year by the time rate cap came in. Sijaongea about profits kaka.. But trust this, the 5 bigger banks will increase profits by margins between 10-15%
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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In the meantime the mido crass have decided to buy mtumba this xmas in anticipation of njaanuary Quote:Lifestyle clothing retailer Deacons yesterday said sales are flat this festive season, attributing minimal business to lower consumer purchasing power.
The firm said delays by the government to settle tens of billions of shillings in arrears to suppliers and interest caps enforced in September have hurt circulation of cash in the economy.
"The company is trading fairly softly. We have not seen the Christmas rush we usually see, but we are hoping it will come towards the end of next week," Deacons Kenya chief executive Wahome Muchiri said in an interview in Nairobi. "I think it's got to do with the interest rate change, the government budget deficit, and the government's inability to meet its obligations to suppliers which has affected the cycle of cash. Cash is not circulating and that directly affects our customers."
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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wukan wrote:In the meantime the mido crass have decided to buy mtumba this xmas in anticipation of njaanuary Quote:Lifestyle clothing retailer Deacons yesterday said sales are flat this festive season, attributing minimal business to lower consumer purchasing power.
The firm said delays by the government to settle tens of billions of shillings in arrears to suppliers and interest caps enforced in September have hurt circulation of cash in the economy.
"The company is trading fairly softly. We have not seen the Christmas rush we usually see, but we are hoping it will come towards the end of next week," Deacons Kenya chief executive Wahome Muchiri said in an interview in Nairobi. "I think it's got to do with the interest rate change, the government budget deficit, and the government's inability to meet its obligations to suppliers which has affected the cycle of cash. Cash is not circulating and that directly affects our customers." Blame the rate caps...a catch all excuse for every business incompetent this season. So banks are not lending and now we hear the government is not buying. What are they going to do with the loot? As my Pastor is fond of saying: give thou unto me a f*&@ing break. "The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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