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Law Capping interest rates
Rank: Elder Joined: 7/22/2009 Posts: 7,910
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obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! 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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Even then I would rather have Sacco loan than the sharky vulturerous bank loan where the bank can change interest rates at will and auction you any time. How many properties have been auctioned by Saccos, For banks you still pay interest in your security which is higher than the loan advanced. Opportunity cost high too. punda amecheka
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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MaichBlack wrote:obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! How did I miss that argument, Sacco loans pay very good interest on deposits, makes up for the interest they charge. I am in a Sacco that charges interest @1% per month reducing balance and and have been paying on average interest/dividend of minimum 10% over the last 5 years. You can borrow 3 times your deposits and they don't charge processing fee or any other handling fees like the Usurious Kenyan banks. They have close to zero bad debts coz all loans must have guarantors. Sacco loans are way more cheaper than bank loans, and even more accessible. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Obi 1 Kanobi wrote:MaichBlack wrote:obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! How did I miss that argument, Sacco loans pay very good interest on deposits, makes up for the interest they charge. I am in a Sacco that charges interest @1% per month reducing balance and and have been paying on average interest/dividend of minimum 10% over the last 5 years. You can borrow 3 times your deposits and they don't charge processing fee or any other handling fees like the Usurious Kenyan banks. They have close to zero bad debts coz all loans must have guarantors. Sacco loans are way more cheaper than bank loans, and even more accessible. http://www.wazua.co.ke/f...spx?g=posts&t=33423
possunt quia posse videntur
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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maka wrote:Obi 1 Kanobi wrote:MaichBlack wrote:obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! How did I miss that argument, Sacco loans pay very good interest on deposits, makes up for the interest they charge. I am in a Sacco that charges interest @1% per month reducing balance and and have been paying on average interest/dividend of minimum 10% over the last 5 years. You can borrow 3 times your deposits and they don't charge processing fee or any other handling fees like the Usurious Kenyan banks. They have close to zero bad debts coz all loans must have guarantors. Sacco loans are way more cheaper than bank loans, and even more accessible. http://www.wazua.co.ke/f...spx?g=posts&t=33423
@Obi there you are. Thanks @Maka 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: 7/22/2009 Posts: 7,910
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newfarer wrote:Even then I would rather have Sacco loan than the sharky vulturerous bank loan where the bank can change interest rates at will and auction you any time. How many properties have been auctioned by Saccos, I like your reasoning. You are aware of your options, have considered each of them and have made your choice. That is the best approach. No need to demand things in a free market. Vote with your feet! 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: 7,910
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MaichBlack wrote:Othelo wrote:MaichBlack wrote:sparkly wrote:MaichBlack wrote:Obi 1 Kanobi wrote:MaichBlack wrote:newfarer wrote:Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law As @mlennyma is saying, Kenyans are a bloody lazy lot!!! Why don't you think of ways you can profitably deploy your money! Were you forced to put it in the bank??? You want to deposit your money in the bank let someone else do all the work and take all the risks and give you a risk free 7% as you sit on your lazy a$$?? Even the bank will not be able to make that much despite all the work and risks! Issue loans @ 14.5% and give you 7%?? Difference? 7.5%! Now subtract all the costs from rent to salaries to marketing to validation of security to following up defaulters etc. etc. What remains?? And to make matters worse, with inflation in Kenya being at 5.xy, it means banks will be doing absolute ZERO work - if not negative!!! Finance and Economics should be made compulsory up to form 2 at least! Not that the issue at hand needs any advanced knowledge but the arguments show how badly we are doing in financial literacy. And this is Wazua. Wait until you go to the streets and villages and you here the reasoning. Reminds me when Kibera residents were told to pay "what the can afford" as rent. And as if that was not bad enough, one fellow appeared on TV saying "Tuliambiwa tulipe ile tunaweza afford. Ambapo ni bure!!!" Eish Bro, you are really freaking out  Economics and free markets were not invented in Kenya. You need to expand your horizon and see how other countries practice the same. Fact is all this free markets economics is not working in Kenya and a solution is needed that does not include maintaining the status quo. I kid you not @Obi. Even when T Bills were at double digits, most Kenyans were too lazy to open an account and buy and left the money lying in a Bank account somewhere earning 2% then complain to whoever was willing to listen. Let people think and put in some work - physical or mental - if they want to earn a coin. Look at the bigger picture boss. The bigger picture is that GOK has the absolute prerogative to make laws regulating anything and everything within the constitution. If a bank doesn't like it, it can go do business elsewhere. Woi!!! GFF!!! Welcome Communism So after banks who will be regulate next, supermarkets. This thing will backfire big time. Let us wait and see.  Now that Kenyans are suffering, I guess we will have to regulate food prices, rent, transport, school fees, clothes, doctor fees, medicine, dowry and I'm sure @Swenani and @Impunity will want landing fees controlled. Actually @Impunity has already complained about the cost of landing gear equipment on this thread. Nilikuwa nimesahau beds, blankets, diapers, day care, house girl salaries, Dstv, Sportpesa etc. We have to make sure Kenyans don't suffer!!! Of course I was being sarcastic when I posted this but this just in... Doctor fees to be controlled...The charges are apparently higher than the ones that are being charged currently but the fact is that now they are being controlled. 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: 7,910
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Quote:When doctors are summoned to court to give expert evidence in a case, they will be paid Sh50,000 by the law firms. Sounds too high to me!!! My questions: 1) Does it apply to doctors in government hospitals??? 2) Who pays in case of a criminal case? Like in the numerous cases where minors are raped in informal settlements, who is expected to pick the bill?? 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: 7/21/2010 Posts: 6,194 Location: nairobi
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MaichBlack wrote:Quote:When doctors are summoned to court to give expert evidence in a case, they will be paid Sh50,000 by the law firms. Sounds too high to me!!! My questions: 1) Does it apply to doctors in government hospitals??? 2) Who pays in case of a criminal case? Like in the numerous cases where minors are raped in informal settlements, who is expected to pick the bill?? somebody is about to say we share equally all income generated by different Kenyans monthly "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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mlennyma wrote:MaichBlack wrote:Quote:When doctors are summoned to court to give expert evidence in a case, they will be paid Sh50,000 by the law firms. Sounds too high to me!!! My questions: 1) Does it apply to doctors in government hospitals??? 2) Who pays in case of a criminal case? Like in the numerous cases where minors are raped in informal settlements, who is expected to pick the bill?? somebody is about to say we share equally all income generated by different Kenyans monthly Hapo ndipo tumeelekea!!! Someone will say it is "immoral" for @mlennyma to have a fridge full of foodstuff and kids having eggs, sausages, bacon etc. for breakfast while other Kenyans have nothing to eat. And why do you need two cars and there is a certain neighbourhood drunk who can use one as a taxi - the days he is sober! 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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