If oil prices continue rising we will all be hurt coz Uganda's oil does not flow for another 2-3 years. 5 years if he wants a refinery built!

Kenya gets screwed no matter what with high oil prices... We need to stop cutting trees so we have better hydro lakini explain that to politicians!

OPEC can say what they want but crude oil is not fungible i.e. light & sweet is the best but not all countries have that... Uganda's oil [I think] is heavy/waxy & sour so more expensive to process...

Already in the works! South Sudan has made it clear they want another route for everything...

We should start building Lamu Port immediately... It will open up the NEP as well as serve Ethiopia & Sudan...

Pole sana! I see that airlines have already started increasing the Fuel Surcharge. They do not raise fares but increase the fuel surcharge. Of course, it all ends up being the same thing...

KQ will survive the higher fuel prices but I think the other smaller operators [East African Safaris, Fly540] will be in huge trouble.

Lucky for KQ, the largest market [Africa] has no choice but to use KQ if they want to travel...

[quote=VituVingiSana]"Let national interest guide banks when lending"

LOLest... Not in Kenya [& not according to most Wazuans especially those who own Bank Stocks]

http://www.businessdaily.../-/d27ouuz/-/index.html[/quote]

i think this borders on communism (aka subsidizing poverty). Communism does not tolerate the idea of markets. Markets keep the balance in the universe.

It is the work of govt tax all according to their means and invest according to their needs... thus distributing opportunity not wealth.

I wish i could share with PROFESSOR Njuguna my limited knowledge of economics:

1. COFs in Kenya are low for most banks because most depositors do not view their account balances as investments... like my mpesa account (0% interest) which is a service not an investment vehicle.

2. they are also low because banks are not desparate for deposits and depositors are not really demanding higher rates. Its not like the fuel cartels... depositors have numerous options when it comes to money...

3. lending rates are high because of the rapid growth of SMEs and microenterprises in the country. i have seen small businesses with such short business cycles that with 500k assests at start of year do revenues of 20m... some of these guys borrow from shylocks at rates as high as 200%... when a bank offers 1.6% monthly on oustanding balances its free money.

4. Inflation Risk:
KES average lending rates are around 16%.
USD, EUR, GBP are around 10%.

NB
a good 95% of wealth in kenya is created by SME and juacali. who is njuguna speaking to? i think what he should do is make finance available rather than cheap... that is what kenya needs.

Banks are so risk averse that they will give a corporate with a balance sheet of 1B an unsecured line at below 10% but not an innovator with a growing business at 20%.

Kudos to banks should be left to conduct business in the most profitable way possible... gok should tax them and invest in women enterprise fund & youth fund...

@ the deal. Its a suprise you sold kq, you've been one of its hugest supporters. But boy what a time to sell, when its on a one yr low. I decided not to take the loss of selling kq. Coz i got in, at 50 something. I've been squashing its presence in my portfolio by not buying more and im very happy now its less than ten percent. Time is what i have. It serves as a reminder to me of never to board a reversing bus, among other lessons. All the best in your endeavours.

did anyone notice the flurry of activity at the COOP counter today

Good for me as Im in the process of rebalancing my portfolio by moving some change from financials to industrials

you meant from industrials to financials...

No, I'm selling financials and buying industrials i.e have sold Equite and now waiting for KPLC at sub 21. NIC on the block at 55, might revise to 53 depending on the market next week.

I know. Simple. It will stop at the next ALL-TIME high. Prove me wrong.