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mkate_nusu		#931 Posted : Tuesday, September 06, 2016 11:31:27 AM
Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole		Fellow wazuans, reading is free and it was all over the news Under the new law, lending rates will be capped at four percentage points above the benchmark central bank rate, which is currently 10.5 per cent, while deposit rates must be at least 70 per cent of the benchmark rate. KEGN, KPLC, KQ, SCOM
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KulaRaha		#932 Posted : Tuesday, September 06, 2016 11:37:24 AM
Rank: Elder Joined: 7/26/2007 Posts: 6,514		mkate_nusu wrote: Fellow wazuans, reading is free and it was all over the news Under the new law, lending rates will be capped at four percentage points above the benchmark central bank rate, which is currently 10.5 per cent, while deposit rates must be at least 70 per cent of the benchmark rate. The law makes no reference to CBR...just a base rate. What is base? Business opportunities are like buses,there's always another one coming
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Plimsoul		#933 Posted : Tuesday, September 06, 2016 11:49:53 AM
Rank: Member Joined: 3/3/2016 Posts: 132		KulaRaha wrote: mkate_nusu wrote: Fellow wazuans, reading is free and it was all over the news Under the new law, lending rates will be capped at four percentage points above the benchmark central bank rate, which is currently 10.5 per cent, while deposit rates must be at least 70 per cent of the benchmark rate. The law makes no reference to CBR...just a base rate. What is base? Actually, the law says: “A bank or financial institution shall set the maximum interest rate chargeable for a credit facility in Kenya at no more than four per cent, the base rate set and published by the Central Bank of Kenya” and yes, it is that poorly worded. Even the word 'above' is missing.
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KulaRaha		#934 Posted : Tuesday, September 06, 2016 11:50:56 AM
Rank: Elder Joined: 7/26/2007 Posts: 6,514		So it can even be inferred that base rate is 4%? Business opportunities are like buses,there's always another one coming
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Plimsoul		#935 Posted : Tuesday, September 06, 2016 12:01:13 PM
Rank: Member Joined: 3/3/2016 Posts: 132		KulaRaha wrote: So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol
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KulaRaha		#936 Posted : Tuesday, September 06, 2016 12:02:30 PM
Rank: Elder Joined: 7/26/2007 Posts: 6,514		Plimsoul wrote: KulaRaha wrote: So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Business opportunities are like buses,there's always another one coming
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obiero		#937 Posted : Tuesday, September 06, 2016 12:13:50 PM
Rank: Elder Joined: 6/23/2009 Posts: 14,319 Location: nairobi		KulaRaha wrote: Plimsoul wrote: KulaRaha wrote: So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... LOL. Those banks self destructed.. COOP, IMH, KEGN, KQ, MTNU
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Plimsoul		#938 Posted : Tuesday, September 06, 2016 12:25:18 PM
Rank: Member Joined: 3/3/2016 Posts: 132		KulaRaha wrote: Plimsoul wrote: KulaRaha wrote: So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Hopefully CBK responds to banks (privately) when they seek clarification/guidance.
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KulaRaha		#939 Posted : Tuesday, September 06, 2016 1:07:25 PM
Rank: Elder Joined: 7/26/2007 Posts: 6,514		Plimsoul wrote: KulaRaha wrote: Plimsoul wrote: KulaRaha wrote: So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Hopefully CBK responds to banks (privately) when they seek clarification/guidance. As a customer, dont you feel its your right to know the correct interpretation? Business opportunities are like buses,there's always another one coming
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Plimsoul		#940 Posted : Tuesday, September 06, 2016 3:09:18 PM
Rank: Member Joined: 3/3/2016 Posts: 132		KulaRaha wrote: Plimsoul wrote: KulaRaha wrote: Plimsoul wrote: KulaRaha wrote: So it can even be inferred that base rate is 4%? Yes. Even 4% of the base rate. Lol CBK needs to come in soon...else Mr Njoroge's legacy will be the destruction of the banking sector in Kenya. He's already closed 3 down... Hopefully CBK responds to banks (privately) when they seek clarification/guidance. As a customer, dont you feel its your right to know the correct interpretation? Absolutely. I think this has been terribly mishandled so far. CBK should have issued clarification with its 14th Sept ultimatum. But we are customers of banks, not the CBK. It is up to banks to get clarification and pass it on to us.
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