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Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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enyands wrote:obiero wrote:enyands wrote:researchfirst wrote:The Financial Times' East Africa correspondent tweeted today that Manoah Esipisu (the official State House spokesman) told the paper, regarding the bill: "We believe in a free market and free market dynamics should generally apply." Seems pretty clear that the President won't sign. There you go. You can't shoot your own foot . Manaoh will not guide us on this one.. Kenyans are tired Tired of mpigs ama banks clarify Both really..
KQ ABP 4.26
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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obiero wrote:enyands wrote:obiero wrote:enyands wrote:researchfirst wrote:The Financial Times' East Africa correspondent tweeted today that Manoah Esipisu (the official State House spokesman) told the paper, regarding the bill: "We believe in a free market and free market dynamics should generally apply." Seems pretty clear that the President won't sign. There you go. You can't shoot your own foot . Manaoh will not guide us on this one.. Kenyans are tired Tired of mpigs ama banks clarify Both really.. Onyesha msimamo
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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MaichBlack wrote:MaichBlack wrote:President Uhuru is not going to sign that bill!!!
Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs.
Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left.
And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? Link: Exactly as I had said earlier. This is Finance/Economics 101. Pure common sense!!! @maichblack. I dont see the Econ 101 you are referring to on this link. just a plea from an industry lobbyist. have you read the comments to the nonsense written by Habil Olaka. Basically what I have been saying here all along but from a wiser public grouping. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 10/23/2007 Posts: 604
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Aki bankers are liars. There is nothing like lending to a high risk borrower. Which bank in Kenya ever gives money to a borrower while doubting their ability to pay. In fact charging high interest is increasing chances of defaulting.
Unless we are talking about the vulture-nature of lenders who lend to persons who cant re-pay so that they can auction their property. That is now over.
1. Bankers are crying wolf like former TELPOSTA employees at the introduction of mobile phones.
2.The same happened with Michuki rules. So called analysts warned of increase in fares. That did not really happen. Bado kuna trip za 10bob.
3. This was the same cry regarding MPESA and Mshwari.
I wish somebody can do something about high land prices...despite being an agent. Even some wives (over)charge for landing....conditions wazimu wazimu.
Fact: Kenyans are over-charged for everything, including prayers in some churches.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 7/22/2009 Posts: 7,836
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Obi 1 Kanobi wrote:MaichBlack wrote:MaichBlack wrote:President Uhuru is not going to sign that bill!!!
Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs.
Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left.
And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? Link: Exactly as I had said earlier. This is Finance/Economics 101. Pure common sense!!! @maichblack. I dont see the Econ 101 you are referring to on this link. just a plea from an industry lobbyist. have you read the comments to the nonsense written by Habil Olaka. Basically what I have been saying here all along but from a wiser public grouping. Quote:Individuals, small and medium sized enterprises (SMEs) who are presumed to have a higher risk of defaulting will be locked out from accessing credit if the Bill becomes law, the Kenya Bankers Association (KBA) said Thursday. 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: 7,836
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There you go!!! But apparently as far as some are concerned, there are no consequences and The Central Bank is just imagining stuff like the rest of us!!! 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: 7,836
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enyands wrote:researchfirst wrote:The Financial Times' East Africa correspondent tweeted today that Manoah Esipisu (the official State House spokesman) told the paper, regarding the bill: "We believe in a free market and free market dynamics should generally apply." Seems pretty clear that the President won't sign. There you go. You can't shoot your own foot . let them come out of parliament and we dance the same koffi Olomide music ,hakuna mapendeleo  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: 3,505 Location: Uganda
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2.20am MaichBlack relax, this issue is giving you sleepless nights, even going to monologue mode, what's your interest? punda amecheka
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Ok. So you think the president will cut his profits because some mucheneguy with nothing better to do has come up with some fancy law? Sehemu ndio nyumba
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