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Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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seeing mshwari charges 7.5% processing fee for a 30 day loan lol, Kenyans are smart, can the term interest be interchanged with the term "fee" can a loan be termed as a lease?
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Rank: Veteran Joined: 8/10/2014 Posts: 955 Location: Kenya
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Consolidated Bank collapses http://www.businessdaily...362118-iwxiap/index.html
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Member Joined: 8/17/2007 Posts: 294
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obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill Not-applying retrogressively means you cannot claim a refund on interest paid. but obviously it will apply on unpaid principal going forward. otherwise market forces will sort it out where you can take a new loan in bank B at 14% to pay an old loan in Bank A. the only people who are sc**wed are those who signed up for fixed rate..such as the asset finance guys
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Just had a look at one of the local Bank's corporate loan book and the highest facility interest rate I saw was 15% p.a. Safaricom is at KBRR + 0.34% for KES loans before this funny law was passed.. Damn! If the Banks lock out Wanjiku, they don't really stand to lose much at 14.5% p.a. if anything as corporate loans make up over 70% of most of their balance sheets. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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kimanimsc wrote:@Barclays_Kenya: We have with immediate effect reduced the interest rates applicable for all new loans to 14.5% p.a in line with the new law. 1/2
@Barclays_Kenya: Equally, we have increased interest rates applicable on new Zidisha savings accounts & new term deposits to a minimum rate of 7.35% p.a. 2/2 And scaremongering was for punda amecheka
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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newfarer wrote:kimanimsc wrote:@Barclays_Kenya: We have with immediate effect reduced the interest rates applicable for all new loans to 14.5% p.a in line with the new law. 1/2
@Barclays_Kenya: Equally, we have increased interest rates applicable on new Zidisha savings accounts & new term deposits to a minimum rate of 7.35% p.a. 2/2 And scaremongering was for Nobody said if the law is passed the banks will not implement. The issue was qualifying will be harder than before and some fellows will be thrown off the Credit bandwagon. Those adverts are saying exactly what the law required. I don't see any news or the need for excitement. 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: 3/19/2010 Posts: 3,504 Location: Uganda
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The issue of qualifications is an old story no bank would give you a loan if it has doubts that you will not pay. Since immemorial. That 7% on deposits is the game changer to me as bank by law will have to pay. Billions in profits is just immoral punda amecheka
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Rank: Elder Joined: 12/4/2009 Posts: 10,641 Location: NAIROBI
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@newfarer on the contrary those 15% deposit rates bank were advertising to give are gone. Banks will also increase insurance premiums on their loans as part of the hidden costs Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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Ericsson wrote:@newfarer
on the contrary those 15% deposit rates bank were advertising to give are gone.
Banks will also increase insurance premiums on their loans as part of the hidden costs The new law requires all costs on loans be disclosed. Run but can't hide. No more immoral chest thumping billions in profits for banks in a country of millions of paupers punda amecheka
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Rank: Elder Joined: 12/4/2009 Posts: 10,641 Location: NAIROBI
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Obiero loaded additional coop bank shares during the bloodbath Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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newfarer wrote:The issue of qualifications is an old story no bank would give you a loan if it has doubts that you will not pay. Since immemorial. That 7% on deposits is the game changer to me as bank by law will have to pay. Billions in profits is just immoral Now what kind of socialist communist crap is this?? Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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Meeeh ...
The sky is not going to fall.
Interconnect rates got controlled,..then call rates dived from the 30s to 8 to 3 bob ..Telcos didn't die ..OK some did, but they weren't fit for purpose anyway.
Fuel pricing regulation came and went....Kenya is still here.
And now banks have to eat this law.
Guess what? There will be some shocks, some corners will get the hair dryer treatment ...and then life will continue.
I am bored to tears by all this scare mongering. I have been denied loans by some banks, then given loans by other banks...one bank's snobbery did not stop me from accomplishing what I intended.
Stop theorizing and get busy. That's the spirit. Some banks are waking to this new reality and aligning their business, who are you to keep drumming it to our ears about some far-fetched apocalypse?
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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quicksand wrote:Meeeh ...
The sky is not going to fall.
Interconnect rates got controlled,..then call rates dived from the 30s to 8 to 3 bob ..Telcos didn't die ..OK some did, but they weren't fit for purpose anyway.
Fuel pricing regulation came and went....Kenya is still here.
And now banks have to eat this law.
Guess what? There will be some shocks, some corners will get the hair dryer treatment ...and then life will continue.
I am bored to tears by all this scare mongering. I have been denied loans by some banks, then given loans by other banks...one bank's snobbery did not stop me from accomplishing what I intended.
Stop theorizing and get busy. That's the spirit. Some banks are waking to this new reality and aligning their business, who are you to keep drumming it to our ears about some far-fetched apocalypse? 
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Rank: Elder Joined: 12/4/2009 Posts: 10,641 Location: NAIROBI
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@newfarer Billions in profits will still be made. I was looking at citibank kenya half year results. Interest on government securities is more than twice interest on loans and advances. Customer deposits is sh.62bn, loans and advances to customers sh.31bn investment in government securities sh.42bn Profit before tax is at ksh.3bn Number of branches in kenya is 2; one in Nairobi and the other in mombasa. Banks will still rake in billions so long as GOK is borrowing aimlessly Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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muandiwambeu wrote:Angelica _ann wrote:maka wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution Court of Appeal stated in the decision of *Benjoh Amalgamated Limited & another v Kenya Commercial Bank Limited [2014] eKLR* "A constitution looks forward and backward, vertically and horizontally, as it seeks to re-engineer the social order. In this way, a constitution may and does embody retrospective provisions or provisions with retrospective ingredients. However, in interpreting the constitution to determine whether it countenances retrospective application of any of its provisions, a court of law must pay due regard to the language of the constitution. If the words used in a particular provision are forward looking and do not contain even a whiff of retrospectivity, the court ought not to import it into the language of the constitution. Such caution is even more necessary if the importation of restrospectivity would have the effect of divesting an individual of their rights which had legitimately become vested before the commencement of the constitution.” Dated and delivered at Nairobi this 20th day of June 2014. *G. B. M. KARIUKI SC* *D. K. MUSINGA* *W. OUKO* JUDGES OF APPEAL So, what does this say in laywoman language  banks are legal entities like u n me. you can not compel them to make losses on past commitments because of ur recently acquired wisdom. at best part performance would suffice willingly. ie payoff, renegotiate or naturally the contract remains in full force. who will u be benefiting in looking backwards and who would u be reinvesting their rights in so doing. the bank or the borrower? but you have the liberty to legally divorce if you found a sweeter gachungwa as long as the other spouse consents. 'CFC Stanbic has becomes one of the first bank to cut rates for existing loans following the move by President Uhuru Kenyatta to sign the Bill capping interest rates on bank loans into law.:d/ '
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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penkon wrote:muandiwambeu wrote:Angelica _ann wrote:maka wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution Court of Appeal stated in the decision of *Benjoh Amalgamated Limited & another v Kenya Commercial Bank Limited [2014] eKLR* "A constitution looks forward and backward, vertically and horizontally, as it seeks to re-engineer the social order. In this way, a constitution may and does embody retrospective provisions or provisions with retrospective ingredients. However, in interpreting the constitution to determine whether it countenances retrospective application of any of its provisions, a court of law must pay due regard to the language of the constitution. If the words used in a particular provision are forward looking and do not contain even a whiff of retrospectivity, the court ought not to import it into the language of the constitution. Such caution is even more necessary if the importation of restrospectivity would have the effect of divesting an individual of their rights which had legitimately become vested before the commencement of the constitution.” Dated and delivered at Nairobi this 20th day of June 2014. *G. B. M. KARIUKI SC* *D. K. MUSINGA* *W. OUKO* JUDGES OF APPEAL So, what does this say in laywoman language banks are legal entities like u n me. you can not compel them to make losses on past commitments because of ur recently acquired wisdom. at best part performance would suffice willingly. ie payoff, renegotiate or naturally the contract remains in full force. who will u be benefiting in looking backwards and who would u be reinvesting their rights in so doing. the bank or the borrower? but you have the liberty to legally divorce if you found a sweeter gachungwa as long as the other spouse consents. 'CFC Stanbic has becomes one of the first bank to cut rates for existing loans following the move by President Uhuru Kenyatta to sign the Bill capping interest rates on bank loans into law.:d/ ' That move is daring but not supported by wisdom
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Ericsson wrote:Obiero loaded additional coop bank shares during the bloodbath I am 10% up just 1 day later
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Ericsson wrote:Obiero loaded additional coop bank shares during the bloodbath I am 10% up just 1 day later Savvy investor, if we average your yesterday's buy price kes 10/ and your kes 23/- price you entered several months ago, you are at loss territory. Unless you hold longterm it will be very difficult for you to break even COOP Bank. Sisemi kwa ubaya lakini. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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