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Law Capping interest rates
Rank: Elder Joined: 12/7/2012 Posts: 11,901
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What is the difference between easy loan and easy plus ........... for those in the know? In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 2/22/2009 Posts: 2,449 Location: Africa
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Angelica _ann wrote:What is the difference between easy loan and easy plus ........... for those in the know? Easy loan is for a small loan amount payable within 30 days. I think it's something akin to an overdraft. Easy plus allows you to borrow up to a maximum of sh.3million within a period of one year
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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How is anybody gotten a loan at a lower rate than 14.5% (now 14%)? What about an unsecured loan? Sehemu ndio nyumba
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Rank: Veteran Joined: 8/10/2014 Posts: 954 Location: Kenya
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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.
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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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. turbulent dynamics of business can leave a few maimed n summarily administered. q4 will be purely on vapour fumes. adopting to the change is the trick for survival here n there after. who will best do dhat , I am single n ready to mingle. but all willing mates r underage hence patience is the virtue for now. time will deliver that horned dude to me in time. bis dan ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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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....  Business opportunities are like buses,there's always another one coming
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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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.... shares are like treasures of goblin,......... supernormal profits must be restored. smartoney works for the owners and smart owners can not work for their money. lessons being taught albeit its painful. smart owners saw the risk and brought it asap. so, smart owners of money will plant whe its due time. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Musimo wrote:alotoftalk wrote:alotoftalk wrote:If Uhuru signs the Bill this will be hat-trick against his own interests. From an economic perspective (inflation, capital flight, contracted lending etc), a business perspective (CBA) and political perspective (due to economic trouble, loss of credibility among the business class, political donations, RAO already pushing for it etc)
I actually want him to sign it, the same way I want Americans to elect Trump and how I wanted Britons to vote for Brexit. These are real life experiences on the effects negative or otherwise of populist policy. Now that the effects of the bill are finally dawning down, let's see if the government will introduce another to force banks to lend depositors money by force to unsecured borrowers with no credit history or collateral. Uhuru's own goal and the journey of self elimination from the beauty contest has started.[Re: Zambia and Venezuela pricing controls] Brexit was an own goal, UK own goal, waiting for the Trump own goal. A great time to be alive. Everyone preaching doom and gloom,so I believe my questions will be well fought out for: 1. What are the actual effects of brexit,both pro and anti? I am yet to see any document on the same and especially from anti-brexiters who predicted collapse of britain as opposed to europe. - Brexit has not yet been effected. UK is still part of the Eurozone 2. In this instance,if banks do not loan out monies to wananchi,and gava decides to do another eurobond,who will they loan put to? (Obviously a bank will rise and take up those angry with their banks for some funny rules on their accounts,saccos still have lower interest while they came up due to the same banks shafting customers on loans. My two cents) - Saccos can never meet the demand. The only choice will be loan sharks3. Government is now getting quite cheap money. Would banks not loaning money to citizens willing to take them then bid as low as 7% margin on money they're giving out to gava? Would that make business sense? - It does make business sense as it is risk free to lend to gava4. If citizens ignore banks just for fun in terms of not taking loans,wont banks deploy en-masse to woo every tom dick and harry to avoid going into loss making territory? - Depends on how much the citizens prefer the loan sharks5. What of NPLs so far since bill was signed? What are the changes seen so far on banks? More questions to follow in due time - No change Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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Shak wrote:Angelica _ann wrote:What is the difference between easy loan and easy plus ........... for those in the know? Easy loan is for a small loan amount payable within 30 days. I think it's something akin to an overdraft. Easy plus allows you to borrow up to a maximum of sh.3million within a period of one year Thanks In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 6/22/2011 Posts: 561 Location: House
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alotoftalk wrote:alotoftalk wrote:If Uhuru signs the Bill this will be hat-trick against his own interests. From an economic perspective (inflation, capital flight, contracted lending etc), a business perspective (CBA) and political perspective (due to economic trouble, loss of credibility among the business class, political donations, RAO already pushing for it etc)
I actually want him to sign it, the same way I want Americans to elect Trump and how I wanted Britons to vote for Brexit. These are real life experiences on the effects negative or otherwise of populist policy. Now that the effects of the bill are finally dawning down, let's see if the government will introduce another to force banks to lend depositors money by force to unsecured borrowers with no credit history or collateral. Uhuru's own goal and the journey of self elimination from the beauty contest has started.[Re: Zambia and Venezuela pricing controls] Brexit was an own goal, UK own goal, waiting for the Trump own goal. A great time to be alive. prophets of doom everywhere. We see you from '18. mketi pale na akina Dr Awor
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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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!! 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: 12/7/2012 Posts: 11,901
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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. Forget the PEV stuff, imagination. 2nd regime did worse things but there was never national revolt. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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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! 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: 7,451
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Angelica _ann wrote: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. Forget the PEV stuff, imagination. 2nd regime did worse things but there was never national revolt. Exactly!!! Hata hawa vijana wame tax things even Moi could never dream of taxing na hakuna kitu wakenya wamefanya! Even textbooks and medicine!!! 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: 7,451
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KulaRaha wrote:Seems the Governor is not as enthusiastic as the rest of you:
Kenya central bank: commercial bank lending may be hit by cap on rates - Reuters News
NAIROBI, Sept 21 (Reuters) - Kenya's cap on commercial bank lending rates is complicating monetary policy and, alongside a cut in the benchmark interest rate, may lead to a decrease in commercial bank lending, the Kenya central bank governor said Wednesday.
Those borrowers deemed to be higher risk are likely to find it more difficult to secure loans after the central bank cut its key lending rate by half a percentage point or 50 basis points to 10 percent on Tuesday, Patrick Njoroge told a new conference.
(Reporting by George Obulutsa; Editing by Katharine Houreld)
As I said earlier, The Governor of Central Bank must be one pissed off Kenyan. He was totally against rate capping and he wrote a very elaborate piece in the Business Daily (I believe) before the law was signed explaining why rate capping is NOT a good idea. Then the president signs the bill into law despite his advice, treasury's advice and the advice of all none political advisor and you tell him to implement the law. I am sure were it not for his love of the country, he would have resigned! He is not in this for money after all. But I am sure he fears if he leaves we might have (a) Kiunjuri as the next Governor of Central Bank and the economy might just go to the dogs. He probably believes he can contribute more/better from the inside, but don't be fooled, the guy is pissed off!!! 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: 7,451
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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!!! 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: 4/22/2010 Posts: 11,522 Location: Nairobi
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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! If he (UK) changes the law it cant apply to old loans. If they try and apply it to old loans that will be kicked in the balls by our Courts and Fair Administration Act and Judicial Review. possunt quia posse videntur
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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maka wrote: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! If he (UK) changes the law it cant apply to old loans. If they try and apply it to old loans that will be kicked in the balls by our Courts and Fair Administration Act and Judicial Review. Did you get the Abunuasi story??? If the new lower rates applied to old loans, why wouldn't the new higher rates not apply to old loans. And if you are not on a fixed rate loan, it goes without saying that your rate can vary. And it has always done - including scenarios where it went up to 28% some time back. You don't expect your loan rate to change from 18% to 14.5% and now 14% imagining it cannot move the other direction - to 25% in January 2018. The courts will not help you here!!! 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: 3,503 Location: Uganda
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Doomsday prophets, you can say what you want to say but all I can say my existing Barclay loan that has been a pain in the wrong place is now bearable. punda amecheka
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Rank: Veteran Joined: 6/23/2014 Posts: 1,652
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I see SBG have revised their charges EFT Payments 0 > 132 RTGS Payments 1000> 495 TT 0> Kes 1,500 or 1% of the value of the payment, whichever is higher. Hutia Mundu!!
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