@Oteve,why do write your responses like a teenager replying an sms? Ama you're charged per letter for the responses you send?

smano

@ VituVingiSana


In all fairness,there has to be a charge for a service rendered (the bank guaranteeing you).

However,the cash is an asset and must sweat for you. This means the commission they are asking can still come from the interest on the deposit:

Assume you place the deposit at 7.3% (current 91 day T-Bill rate) for 90 days,with a commercial bank:

Gross int: 20m*7.3%*90/365=360,000/=

less 15% withholding tax = 54,000/=.

Net interest income you earn=306,000/=

less guarantee comm = 125,000/=

Net interest earnings on this investment =181,000/=

Total credited back to your a/c after 90 days (P+I) = 20,181,000/=

So no coin comes from your pocket about this guarantee.Documentation (letter of offer) by the bank can be suitably structured to tie up this arrangement. Suggest you scout around for lower comm .charges on the guarantee to further maximize your return.

Lets look at this at the macro-level:

Put another way:

-the 125,000/= is your direct quantifiable cost of your mistrust in your lawyer,

- 125,000/= is the opportunity cost of having an honest lawyeri.e you would not incur this if you trusted your lawyer

-125,000/= is the direct cost of corruption in the bar that YOU -an ordinary citizen are bearing.

- Corruption in the country is impacting on you to this extent,not reckoning the manhours you will spend to tie up the above arrangement....


..there's nothing,absolutely nothing really,that I can't do if I put my mind to it.

Today's lead story in the Nation is how Government Ministries are not prepared to deal with the new system. If one arm of the government cannot handle it,how can another arm order it?

The value cap may not apply to cheques issued to another bank within the same bank as it does not have to be cleared through central bank. Hence the bank asking for a cheque of 1.6 million as they will cash it themselves.


Baada ya dhiki,faaraja

Nation Story - Idiots in GoK/CBK screws Kenyans!!!

'A cash crisis has hit civil servants’ cooperative societies after the government banned cheques with a value of more than Sh1 million. All payments of more than Sh1 million are supposed to be made using a new computer software,which many government ministries did not have.

Two weeks after the ban,they continued paying sacco members’ contributions through cheques,which the saccos can’t cash in the old way.

New policy

Cooperatives — which serve over 60,000 civil servants — could not make payments totalling Sh1.3 billion because ministries had not complied with the new policy introduced by the Central Bank of Kenya.

The bank prohibited the payment of amounts exceeding Sh1 million through cheques with effect from October 1. The rule was meant to enhance safety by reducing cheque fraud and increasing efficiency in the payment process.

On Wednesday,officials from various saccos told the Daily Nation that CBK was meant to have installed the computer software in all ministries by October 1. However,it had not done so on time and for two weeks,the ministries continued to issue cheques to the cooperatives.

An official of Jamii Sacco,who refused to be named fearing victimisation,said failure to put in place the proper systems in good time had caused a cash-flow crisis among civil servants,farmers,schools,and Jua Kali (informal sector) industries.

Cash-starved

He said cash-starved saccos had a difficult time explaining to distressed members who needed money for emergencies like medical care and funerals why they can’t be paid. “In two weeks alone,a sacco transacts not less than Sh30 million,” one official said. According to him,there are more than 50 saccos whose members are civil servants,bringing their estimated transactions to about Sh1.5 billion.

He said the delays could have put smaller saccos to near ruin since the cheques they received as members’ contributions or loan repayments could not be cleared. The Union of Kenya Civil Servants secretary general,Mr Tom Odege,has also protested. “Some members have literally been grounded,” he said during the Public Service Week.

The notice was issued in June by the Central Bank of Kenya in agreement with the Kenya Bankers Association barring high value payments using cheques and Electronic Cash Transfers. The two means of payment were restricted to settling amounts not exceeding Sh1 million.'

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

http://www.centralbank.g...ECAPPINGFAQBrochure.pdf

CFC Stanbic is charging 1,050/- for sending RTGS payments. KBA recommends 500/-. What a scam.



Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB