Just commenting on the BD article, conclusions not mine:

... fresh attempt at taming high commercial bank rates through amendments to the Finance Bill 2012 that could sideline popular banks.

... wants to have State funds channelled through public-owned banks.

... seeks changes to the Banking Act to introduce a section that will restrict the government disbursement of loans for the vulnerable to State-owned banks.

... Among the non-State retail banks with the widest reach used to disburse the funds are Equity and Family.

...public entities to open and operate bank accounts only in banks the government is a shareholder

@spendthrift as you can see, the writer of the article has drawn conclusions that the changes are mean't to lock out "popular banks" that have been named.

These banks have the widest reach in Kenya of people and groups to which the funds are disbursed.

The only banks that the funds will then be distributed through will be KCB, CB and NBK. KCB and NBK are listed banks, why would anyone restrict the interest the charge and not the other commercial banks?

This new bill works well for KCB whichever way it goes!

If it is dropped, KCB continues to enjoy supernormal spreads!

If it passes, KCB will be the direct beneficiary of all government projects funds which are HUGE!!
Do not discount how many customers will be attracted to Simba due to high deposit rates & low lending rates!!

The loser here is EB because they stand to lose their micro lending niche and GOK loans!

Simba looking strong at 28-28.25 at close of trading,only playing second to EABL in terms of turnover! Has moved 5.36M shares at 28 bob!
Rooaaar

Doesnt get better than this!