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Banks Future: 3% loans for Civil Servants
Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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The GoK, starting 17th Dec. 2014, is giving 3% loans on cars and houses, on reducing balance basis, to all willing Civil Servants. So, how will lenders respond? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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If KRA prescribed rate is 7%, I'm sure they'll be taxed on the difference. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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its been that way for sometime, 7% for civil service. maybe imeenda chini sasa LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Veteran Joined: 1/3/2014 Posts: 1,063
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KulaRaha wrote:If KRA prescribed rate is 7%, I'm sure they'll be taxed on the difference. The fringe benefit is paid by the employer and not the employee. Consistency is better than intensity
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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PeterReborn wrote:KulaRaha wrote:If KRA prescribed rate is 7%, I'm sure they'll be taxed on the difference. The fringe benefit is paid by the employer and not the employee. True FBT is paid by the employer, but there's also deemed interest whose tax is borne by the loanee. Don't quite know how one is selected over the other, but the employer deploys one of the two. On FBT, I'm aware of employers who illegally deduct from employees, but employees keep quiet because they are still better off than market rate mortgagees.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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kyt wrote:its been that way for sometime, 7% for civil service. maybe imeenda chini sasa And why do Civil Servants troop to banks for 21%? At 3% reducing balance, if readily available, that is free money!!!!! Receive with simplicity everything that happens to you.” ― Rashi
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Rank: New-farer Joined: 3/31/2014 Posts: 24
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Gordon Gekko wrote:PeterReborn wrote:KulaRaha wrote:If KRA prescribed rate is 7%, I'm sure they'll be taxed on the difference. The fringe benefit is paid by the employer and not the employee. True FBT is paid by the employer, but there's also deemed interest whose tax is borne by the loanee. Don't quite know how one is selected over the other, but the employer deploys one of the two. On FBT, I'm aware of employers who illegally deduct from employees, but employees keep quiet because they are still better off than market rate mortgagees. FBT is supposed to be borne by the employer. However, when the employer is tax exempt, the employee bears the tax as KRA maintains that somebody has to pay the tax. Same applies to the pension benefit above the 20k threshold.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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There can be no kenya without banks,since december banks are still crowded and now they are worse,they do rights because money to lend and grow is not enough despite the huge profits,banks will continue being profitable but it should be noted that profit dips is not a loss.there are very deep pockets and coporate deals in banking sector the ordinary pple can't know "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Runner wrote:Gordon Gekko wrote:PeterReborn wrote:KulaRaha wrote:If KRA prescribed rate is 7%, I'm sure they'll be taxed on the difference. The fringe benefit is paid by the employer and not the employee. True FBT is paid by the employer, but there's also deemed interest whose tax is borne by the loanee. Don't quite know how one is selected over the other, but the employer deploys one of the two. On FBT, I'm aware of employers who illegally deduct from employees, but employees keep quiet because they are still better off than market rate mortgagees. FBT is supposed to be borne by the employer. However, when the employer is tax exempt, the employee bears the tax as KRA maintains that somebody has to pay the tax. Same applies to the pension benefit above the 20k threshold. FBT is for employee loans after 1998. For loans taken before 1998, "Low Interest Benefit" applies and tax is paid by employee. Low Interest Benefit is not to be confused with "deemed interest" which is interest assumed where a parent company lends money to a subsidiary at 0% interest rate (with intention of avoiding 15% withholding tax on interest). Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 13,519 Location: nairobi
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dunkang wrote:kyt wrote:its been that way for sometime, 7% for civil service. maybe imeenda chini sasa And why do Civil Servants troop to banks for 21%? At 3% reducing balance, if readily available, that is free money!!!!! Speed of execution and confidentiality
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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obiero wrote:dunkang wrote:kyt wrote:its been that way for sometime, 7% for civil service. maybe imeenda chini sasa And why do Civil Servants troop to banks for 21%? At 3% reducing balance, if readily available, that is free money!!!!! Speed of execution and confidentiality It is there on papers but practically....A tall order a lot of beurocracy and very long time to get...that depends on availability of funds. In other words those wakubwa benefit in senior job groups... The rest even dont know that exists. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Banks Future: 3% loans for Civil Servants
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