Wazua
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Law Capping interest rates
Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Coop will take the biggest hit, just watch. Their loan book was at 24%. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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KulaRaha wrote:Coop will take the biggest hit, just watch. Their loan book was at 24%. Their Q3 will humble you. On being the most expensive you are wrong.... COOP has consistently been the cheapest tier 1 lender based on its low cost of funds from the SACCO movement, and I can prove it http://www.the-star.co.k...borrow-personal_c1294170
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: New-farer Joined: 2/7/2016 Posts: 79 Location: Home
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I have two questions for you educated wazuans. I have my eyes on Housing Finance and KCB. How will this law affect profitability of KCB? How will this law affect the profitability of Housing Finance? I really need some answers to those two questions to inform my decision.
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Rank: Veteran Joined: 8/10/2014 Posts: 955 Location: Kenya
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Mkondoa Macho wrote:I have two questions for you educated wazuans. I have my eyes on Housing Finance and KCB. How will this law affect profitability of KCB? How will this law affect the profitability of Housing Finance? I really need some answers to those two questions to inform my decision. New law decreases the amount of money they make per customer they lent above 14% and they can overcome this by increasing their loan volumes,get cheaper funding,increase non-interest income, reduce costs or decreasing their NPLs. From my observation am seeing more advertisements by KCB asking people to open accounts with them, seems they want cheaper funding first through current accounts.
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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obiero wrote:[quote=KulaRaha]Coop will take the biggest hit, just watch. Their loan book was at 24%. Their Q3 will humble you. On being the most expensive you are wrong.... COOP has consistently been the cheapest tier 1 lender based on its low cost of funds from the SACCO movement, and I can prove it http://www.the-star.co.k...orrow-personal_c1294170[/quote] Q3 numbers are irrelevant, the law passed on 14 September. Lets wait for Q1 2017...it will be murder! Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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KulaRaha wrote:obiero wrote:[quote=KulaRaha]Coop will take the biggest hit, just watch. Their loan book was at 24%. Their Q3 will humble you. On being the most expensive you are wrong.... COOP has consistently been the cheapest tier 1 lender based on its low cost of funds from the SACCO movement, and I can prove it http://www.the-star.co.k...orrow-personal_c1294170[/quote] Q3 numbers are irrelevant, the law passed on 14 September. Lets wait for Q1 2017...it will be murder! True. Let us wait
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Veteran Joined: 8/10/2014 Posts: 955 Location: Kenya
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Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! 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: 3/2/2009 Posts: 26,325 Location: Masada
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KCB just sms'ed me about getting Mpesa loans at 0.5% interest for amounts between 50,000 and 500,000. This 0.5% is per what? And what are the fixed charges? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Angelica _ann wrote:watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! Thats a lot my dear... possunt quia posse videntur
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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maka wrote:Angelica _ann wrote:watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! Thats a lot my dear... With the MEGA scandals and corruption faced in .KE for the last 4 years, nowadays "billions of shillings" sounds like pocket change!  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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Impunity wrote:KCM just sms'ed me about getting Mpesa loans at 0.5% interest for amounts between 50,000 and 500,000.
This 0.5% i sper what? And what are the fixed charges? Straight outta Kamiti!!! 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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Impunity wrote:maka wrote:Angelica _ann wrote:watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! Thats a lot my dear... With the MEGA scandals and corruption faced in .KE for the last 4 years, nowadays "billions of shillings" sounds like pocket change! By time for WSR hapo 2025 we will be doing trillion  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: 6/23/2009 Posts: 13,475 Location: nairobi
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obiero wrote:obiero wrote:tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:[quote=obiero][quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally Graham's law remains true http://www.businessdaily...21518-mb1uhx/index.html[/quote] GOK goes big on domestic borrowing. Am I shocked? No..
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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Angelica _ann wrote:Impunity wrote:maka wrote:Angelica _ann wrote:watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! Thats a lot my dear... With the MEGA scandals and corruption faced in .KE for the last 4 years, nowadays "billions of shillings" sounds like pocket change! By time for WSR hapo 2025 we will be doing trillion 60B can do 2 Masinga dams
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Veteran Joined: 8/10/2014 Posts: 955 Location: Kenya
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Angelica _ann wrote:watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! They never stay within the limits
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Rank: Member Joined: 7/3/2014 Posts: 245
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watesh wrote:Angelica _ann wrote:watesh wrote:Govt to increase local borrowing from ksh236.1bn to ksh294.6bn. That interest rate will go up That is only around 60b, nothing much!!!! They never stay within the limits Election year expect the figure to double. In the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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Rank: Member Joined: 2/8/2007 Posts: 808
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Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money?
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Rank: Member Joined: 2/8/2007 Posts: 808
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*before the 8 the six years to 2008 dent was growing at lower pace than GDP. At 4.1 trill we have gone to the dogs proper! It is just a matter of when we become greeky and not if!!!
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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