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Law Capping interest rates
Rank: New-farer Joined: 5/19/2014 Posts: 68 Location: Migori
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Mukiri wrote:Loans should be at 1 or 2%! Anything above 5% is corruption. If default is their argument, then shouldn't banks reduce interest to make repayment feasible? Ours is a man-eat-man country, and if nobody looks out for ordinary mwanainchi, the bullies will have a feild day.
And while we are at it, calling rates should be cents.. Whats with all these super billions reported in profits, with a Wanjiku insulted as 3rd World. Ali baba and Crypto, come restore some sanity I only have one response for you. Start your own bank or money lending business and lend at those rates. Thank you. Learning to sit on my hands
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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ombaalbt wrote:Mukiri wrote:Loans should be at 1 or 2%! Anything above 5% is corruption. If default is their argument, then shouldn't banks reduce interest to make repayment feasible? Ours is a man-eat-man country, and if nobody looks out for ordinary mwanainchi, the bullies will have a feild day.
And while we are at it, calling rates should be cents.. Whats with all these super billions reported in profits, with a Wanjiku insulted as 3rd World. Ali baba and Crypto, come restore some sanity I only have one response for you. Start your own bank or money lending business and lend at those rates. Thank you. LOL. Truly speaking even The Land of the Free doesn't have such low rates
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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ombaalbt wrote:Mukiri wrote:Loans should be at 1 or 2%! Anything above 5% is corruption. If default is their argument, then shouldn't banks reduce interest to make repayment feasible? Ours is a man-eat-man country, and if nobody looks out for ordinary mwanainchi, the bullies will have a feild day.
And while we are at it, calling rates should be cents.. Whats with all these super billions reported in profits, with a Wanjiku insulted as 3rd World. Ali baba and Crypto, come restore some sanity I only have one response for you. Start your own bank or money lending business and lend at those rates. Thank you.  Eish! Though if you haven't noticed, there is already a revolution slowly happening.
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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obiero wrote:ombaalbt wrote:Mukiri wrote:Loans should be at 1 or 2%! Anything above 5% is corruption. If default is their argument, then shouldn't banks reduce interest to make repayment feasible? Ours is a man-eat-man country, and if nobody looks out for ordinary mwanainchi, the bullies will have a feild day.
And while we are at it, calling rates should be cents.. Whats with all these super billions reported in profits, with a Wanjiku insulted as 3rd World. Ali baba and Crypto, come restore some sanity I only have one response for you. Start your own bank or money lending business and lend at those rates. Thank you. LOL. Truly speaking even The Land of the Free doesn't have such low rates 0.95% in Japan
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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maka wrote:mobutu123 wrote:Banks have to be innovative.
if i may ask these guys supporting removal of
caps.give 3 reasons how caps removal will make my business and the economy grow. It will make their shares appreciate.  Phew  ,Behold, a sower went forth to sow;....
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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Ngalaka wrote:mobutu123 wrote:Banks have to be innovative.
if i may ask these guys supporting removal of
caps.give 3 reasons how caps removal will make my business and the economy grow. With vibrancy in the economy your business will benefit. SMEs who are hard up would get a reprieve and spur the economy. Whatever you sell, they will begin (new customers) buying or increase (old customers) their volume of purchase. By the way though I support the removal of rate caps as we know them to date, I do not deny that there is need to engage the banking/finance sector players in a constructive, and consultative way, that does not involve bludgeoning them into submission as seems to be the case currently. Handled meaningfully we should be able to roll out an interest rate regime that is not debilitating to the borrower, but at the same time good for the lender. While at it we must take note that interest rate for this economy is determined by factors that are unique to our economy and all that pertains to it, including CORRUPTION, which I submit is a key factor here. As such the whole issue represents one big irony of the rate cap law, as imposed by those who ought to check corruption levels – then everything else follows! Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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Ngalaka wrote:Ngalaka wrote:mobutu123 wrote:Banks have to be innovative.
if i may ask these guys supporting removal of
caps.give 3 reasons how caps removal will make my business and the economy grow. With vibrancy in the economy your business will benefit. SMEs who are hard up would get a reprieve and spur the economy. Whatever you sell, they will begin (new customers) buying or increase (old customers) their volume of purchase. By the way though I support the removal of rate caps as we know them to date, I do not deny that there is need to engage the banking/finance sector players in a constructive, and consultative way, that does not involve bludgeoning them into submission as seems to be the case currently. Handled meaningfully we should be able to roll out an interest rate regime that is not debilitating to the borrower, but at the same time good for the lender. While at it we must take note that interest rate for this economy is determined by factors that are unique to our economy and all that pertains to it, including CORRUPTION, which I submit is a key factor here. As such the whole issue represents one big irony of the rate cap law, as imposed by those who ought to check corruption levels – then everything else follows! There is nothing unique to our economy. Economics has and will always have 4 factors of production the world over. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Veteran Joined: 7/5/2010 Posts: 2,061 Location: Nairobi
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Ngalaka wrote:Ngalaka wrote:mobutu123 wrote:Banks have to be innovative.
if i may ask these guys supporting removal of
caps.give 3 reasons how caps removal will make my business and the economy grow. With vibrancy in the economy your business will benefit. SMEs who are hard up would get a reprieve and spur the economy. Whatever you sell, they will begin (new customers) buying or increase (old customers) their volume of purchase. By the way though I support the removal of rate caps as we know them to date, I do not deny that there is need to engage the banking/finance sector players in a constructive, and consultative way, that does not involve bludgeoning them into submission as seems to be the case currently. Handled meaningfully we should be able to roll out an interest rate regime that is not debilitating to the borrower, but at the same time good for the lender. While at it we must take note that interest rate for this economy is determined by factors that are unique to our economy and all that pertains to it, including CORRUPTION, which I submit is a key factor here. As such the whole issue represents one big irony of the rate cap law, as imposed by those who ought to check corruption levels – then everything else follows! The big stick is the only language banks understand my fren....and that applies not just here, but in the west where finance is highly developed. That's why you hear Deutsche Bank, Goldman Sachs are fined eye watering billions when they color outside the lines. You give them an inch and banks will f*** borrowers until they can pass a melon, excuse my French.
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Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi
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For the pro-rate brigade, please help us understand what will force the banks to open their tight fists and lend to wanjiku under the current scenario?
1) Dwindling profits?
2) Public pressure?
3) Competition?
4) Government force (legislation)?
As long as risk-free rates on government securities are more attractive than lending at a flat rate to the borrowing public (on a risk adjusted basis)...we shall continue to wait for the banks to relent...and wait in vain.
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Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi
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mobutu123 wrote:Banks have to be innovative.
if i may ask these guys supporting removal of
caps.give 3 reasons how caps removal will make my business and the economy grow. Please google: The role of credit in an economy.
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