a lacuna has been created at the bottom of the pyramid..this is the time for another dti or mfi (muharata? sacco) to come in and pull a 90s equity on the multinachonol

When CBK raised the CBR to 16.5 this was precisely what they wanted:banks hiking their rates to deter borrowing hence control liquidity in the market.

Equity has just done what the regulator wants,furthermore if you look at the spread when the CBR was at 5.65(I cant remember the exact rate but it was around 5%)equity was charging 15% thats a 9+% spread now its around 8.5% in away the bank has reduced its spread by 0.5%.

Equity Bank is not a charity...and neither is any other bank. These are businesses that are expected to meet client expectations profitably for their shareholders. The CBK's objective was to mop up cash from the economy, these rate hikes are an offshoot of that policy. CBK, although belatedly, is playing hard ball as it should. Banks have little choice in raising their rates.The third wave or rate increases is upon the economy and the signal is clear...it's a wrap for cheap credit.

murenj? murenju?

if what u are saying is true then our good old professor must have gotten his degrees out of river road or he owns or has shares in a big bank and he is using the CBR excuse so his bank could pretend that the cost of fund is expensive and reap greatly from wanjiku by charging her insanely high interest rates on loans.

Assuming that you want to take a loan to invest in a business. Which are some of the businesses that can guarantee a return of more than 25%, to make a profit????

I know Equity rate is the effective lending rate. Genghis are yu sure the rates quoted for other banks are not there base rates. They would then load additional interest depending on your risk factor and type of credit.

My Bad.

But my logic is that very few banks actually fund their loan books from overnight borrowing. Therefore, there is no real reason ( other than Greed) for them to raise interest rates for now. Most banks will retain a 20% buffer on deposits.

Me sees this as a scheme to rip off Kenyans as the election fever kicks in.

And yet they are still growing their loan book at the fastest rate in kenya..

25% flat rate translates to 43.34% reducing balance rate. Members are seriously exploited