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Law Capping interest rates
Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. possunt quia posse videntur
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... possunt quia posse videntur
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito...guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!!  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Impunity wrote:maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito... guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!!  Wazito kama wewe!!!! Yet a potential gain of 10K is keeping you excited and making you sleepless! Quote:Portfolio: KQ 6,200
You know you've made it when you get a parking space for your yatcht. If Obiero did it, Who Am I?
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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maka wrote:http://kenyanwallstreet.com/imf-says-rate-cap-bill-will-adversely-affect-kenyas-economy Quote:However, the IMF team was concerned that the recent amendments to the Banking Act that set limits on deposit and lending rates are likely to have an adverse impact on Kenya’s economy. From their experience in other markets, such interest rate controls have been ineffective and gave rise to unintended negative consequences including reduced access to financing for the SMEs and an increase in informal lending at much higher interest rates.
“Interest rate limits could also reverse the remarkable increase in financial inclusion that has benefited a large proportion of Kenya’s population. These adverse effects could lead to lower economic growth and undermine efforts to reduce poverty. In addition, interest rates limits undermine the effectiveness of monetary policy aimed at ensuring price stability and supporting sustainable economic growth.” noted the IMF team.
I will not add anything lest I rattle some fellows who make up for the lack of knowledge with raw emotions!!! 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: 3,504 Location: Uganda
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In my lack of knowledge raw emotions reaction, I got an increase in my 2 safaricom mshwari lines, KCB Mpesa limit Barclays is always calling me to extend a loan to me, what does this mean for those with greater knowledge in regards to rates capping? In the words of Michael Joseph, Kenyan market is peculiar, mpesa failed in south Africa but it's a cash cow in Kenya, if rates capping failed elsewhere, it may not necessarily fail in Kenya, Our biggest failure is corruption, not rate capping punda amecheka
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Swenani wrote:Impunity wrote:maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito... guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!! Wazito kama wewe!!!! Yet a potential gain of 10K is keeping you excited and making you sleepless! Quote:Portfolio: KQ 6,200
You know you've made it when you get a parking space for your yatcht. You dont air balls on the rock by the riverside to dry them...that 6,200 could anything divided by 100s or 1000s. Kepp laughing mate! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 9/25/2008 Posts: 510
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Barclays have instructed my employer to recover some bad loan without notice ni kubaya! I need arbitration ASAP! I AM trust in GOD, I AM belief in THYSELF
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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T-Bag wrote:Barclays have instructed my employer to recover some bad loan without notice ni kubaya! I need arbitration ASAP! Lipa madeni 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: Member Joined: 5/6/2011 Posts: 391 Location: Nairobi
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T-Bag wrote:Barclays have instructed my employer to recover some bad loan without notice ni kubaya! I need arbitration ASAP! "You can't have everything. Where would you put it?" - Stephen Wright
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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T-Bag wrote:Barclays have instructed my employer to recover some bad loan without notice ni kubaya! I need arbitration ASAP! You write this without shame?Why do you need a notice, Did you give Barclays a notice of defaulting? If Obiero did it, Who Am I?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Impunity wrote:Swenani wrote:Impunity wrote:maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito... guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!! Wazito kama wewe!!!! Yet a potential gain of 10K is keeping you excited and making you sleepless! Quote:Portfolio: KQ 6,200
You know you've made it when you get a parking space for your yatcht. You dont air balls on the rock by the riverside to dry them...that 6,200 could anything divided by 100s or 1000s. Kepp laughing mate! Divided by 100=6200/100=62 Divided by 1000=6200/1000=6.2  If Obiero did it, Who Am I?
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Swenani wrote:Impunity wrote:Swenani wrote:Impunity wrote:maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito... guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!! Wazito kama wewe!!!! Yet a potential gain of 10K is keeping you excited and making you sleepless! Quote:Portfolio: KQ 6,200
You know you've made it when you get a parking space for your yatcht. You dont air balls on the rock by the riverside to dry them...that 6,200 could anything divided by 100s or 1000s. Kepp laughing mate! Divided by 100=6200/100=62 Divided by 1000=6200/1000=6.2
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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 possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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obiero wrote:obiero wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:Ebenyo wrote:[quote=obiero]I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. Smaller banks will fold Here we are... Family & Sidian, then Ecobank http://www.businessdaily...6506-316lohz/index.html[/quote] First Community Bank and now Prime Bank http://www.businessdaily...47234-fgnhd2z/index.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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This are very simplistic calculations!!! For some of these banks a huge percentage of the loans (on value) were to corporate clients who were enjoying rates lower than 14% even before rate caps!!! 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: 6/23/2009 Posts: 13,555 Location: nairobi
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MaichBlack wrote:This are very simplistic calculations!!! For some of these banks a huge percentage of the loans (on value) were to corporate clients who were enjoying rates lower than 14% even before rate caps!!! Takataka analysis
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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