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Law Capping interest rates
obiero
#1251 Posted : Saturday, September 24, 2016 8:23:30 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,321
Location: nairobi
A recession is on the way for Kenya unless urgent action is taken against the drop in domestic lending to the retail segment
COOP, IMH, KEGN, KQ, MTNU
streetwise
#1252 Posted : Saturday, September 24, 2016 9:33:44 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
I know we all can have 100 reasons why things will not work. All I need is one way that will work
newfarer
#1253 Posted : Saturday, September 24, 2016 11:58:04 AM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
streetwise wrote:
I know we all can have 100 reasons why things will not work. All I need is one way that will work

Me that one thing is that I'm I will continue paying bearable interest rate than that crazy 20%.my bank is still calling me to top up. smile
punda amecheka
muandiwambeu
#1254 Posted : Saturday, September 24, 2016 3:04:29 PM
Rank: Veteran

Joined: 8/28/2015
Posts: 1,247
bird_man wrote:
MaichBlack wrote:
KulaRaha wrote:
Seems the Governor is not as enthusiastic as the rest of you:

Kenya central bank: commercial bank lending may be hit by cap on rates - Reuters News

NAIROBI, Sept 21 (Reuters) - Kenya's cap on commercial bank lending rates is complicating monetary policy and, alongside a cut in the benchmark interest rate, may lead to a decrease in commercial bank lending, the Kenya central bank governor said Wednesday.

Those borrowers deemed to be higher risk are likely to find it more difficult to secure loans after the central bank cut its key lending rate by half a percentage point or 50 basis points to 10 percent on Tuesday, Patrick Njoroge told a new conference.



(Reporting by George Obulutsa; Editing by Katharine Houreld)


As I said earlier, The Governor of Central Bank must be one pissed off Kenyan.

He was totally against rate capping and he wrote a very elaborate piece in the Business Daily (I believe) before the law was signed explaining why rate capping is NOT a good idea. Then the president signs the bill into law despite his advice, treasury's advice and the advice of all none political advisor and you tell him to implement the law.

I am sure were it not for his love of the country, he would have resigned! He is not in this for money after all. But I am sure he fears if he leaves we might have (a) Kiunjuri as the next Governor of Central Bank and the economy might just go to the dogs. He probably believes he can contribute more/better from the inside, but don't be fooled, the guy is pissed off!!!

Watermelon kind of answers from a man forced to implement an unsustainable law.
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Ericsson
#1255 Posted : Saturday, September 24, 2016 4:02:46 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,820
Location: NAIROBI
Wiseman Obiero has spoken
recession is underway
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Akenyan2014
#1256 Posted : Saturday, September 24, 2016 4:57:26 PM
Rank: Member

Joined: 5/6/2014
Posts: 268
Location: Nairobi, Kenya
I fail to understand how the economy shall go to recession if banks are stopped from exploiting Kenyans.
obiero
#1257 Posted : Saturday, September 24, 2016 5:07:32 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,321
Location: nairobi
Akenyan2014 wrote:
I fail to understand how the economy shall go to recession if banks are stopped from exploiting Kenyans.

It's the banks that will take us there..
COOP, IMH, KEGN, KQ, MTNU
newfarer
#1258 Posted : Saturday, September 24, 2016 6:54:57 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
obiero wrote:
Akenyan2014 wrote:
I fail to understand how the economy shall go to recession if banks are stopped from exploiting Kenyans.

It's the banks that will take us there..

If so why are some banks calling customers to top up loans?
punda amecheka
alma1
#1259 Posted : Saturday, September 24, 2016 8:38:03 PM
Rank: Elder

Joined: 9/19/2015
Posts: 2,871
Location: hapo
Obiero after your fiasco with KQ I really wonder about you..

So Kenya is going to a recession because of banks not lending? Which school of economics is that one? Banks always lend. Maybe not to you or Wanjiku but they'll lend to someone...They'll call it credit, mortgage, bonds, Loc, mutual fund etc, but banking is about lending...

That was point one.

Second point.

Economies don't die because banks don't lend to Wanjiku. They go into recession 99% of the time because of poor gov't fiscal policies.

So unless you are a Jubilee apologist, you are going nuts again. There is going to be a recession in Kenya. Just look at the body language of the CBK governor. Look at guru's posts.

The worry for banks is that just as quickly as this bill passed, Obiero shall come up with some silly idea that it's because of the banks..

Fact is, Jubilee has borrowed money that my kids can't pay to build a railway line that should have been built with 1978 technology. It has also borrowed money to give Masukumas love child Mutahi Ngunyi money he wanted to steal.

This is like the white guys who say that blacks should be excited since they are americans even though they are shot every 2 days.
Thieves are not good people. Tumeelewana?

The Great
#1260 Posted : Saturday, September 24, 2016 10:02:22 PM
Rank: Member

Joined: 9/9/2015
Posts: 233
Helicopter money economics gearing up. Kwanza 2017.Then 2017 xmas ndio ngoma itaanza. Things will just fall apart. Watch this space
"Buy when there's blood in the streets, even if the blood is your own."
303 Pages«<124125126127128>»
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