Wazua
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Kenya Economy Watch
Rank: Veteran Joined: 5/5/2011 Posts: 1,059
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Things are elephant, acha mediamax most of my midro klass friends are walking on thin very thin string, clients are looking for reasons not to pay, one straight up told me the only way he will pay is if a court orders it, very soon i might have to let some workers go and it kills me because there is nothing i can do, the banks even those we have worked with for very long will not extend credit because they can tell our payments are far in between and dwindling every week, For mediamax advertisers came into hard times and that obviously affected their business, trust me Keroche Humphrey and the rest who have been hit by KRA can never advertise with Mediamax, funeral and general announcements will not fill the gaps left by the big manufacturers, add to this the social media side and the free newspaper. I am not sure the repealing of the rate cap will have a huge effect on the economy because banks will be super careful seeing that many firms are at the edge, behind on rent and salaries, tax and deductions like NSSF and NHIF so even a 5 million loan will just not be enough. To Each His Own
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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kayhara wrote: Things are elephant, acha mediamax most of my midro klass friends are walking on thin very thin string, clients are looking for reasons not to pay, one straight up told me the only way he will pay is if a court orders it, very soon i might have to let some workers go and it kills me because there is nothing i can do, the banks even those we have worked with for very long will not extend credit because they can tell our payments are far in between and dwindling every week,
For mediamax advertisers came into hard times and that obviously affected their business, trust me Keroche Humphrey and the rest who have been hit by KRA can never advertise with Mediamax, funeral and general announcements will not fill the gaps left by the big manufacturers, add to this the social media side and the free newspaper.
I am not sure the repealing of the rate cap will have a huge effect on the economy because banks will be super careful seeing that many firms are at the edge, behind on rent and salaries, tax and deductions like NSSF and NHIF so even a 5 million loan will just not be enough. Spot on. The middle class is always the last to get the memo on economic ruin. As for repealing the rate cap, it can't catalyze a turn around as is being touted on these pages. That is simply wishful thinking. This bear and economic slowdown preceded the caps by one and a half years plus KE is now much further down that perilous rabbit hole than it was in 2016. For sustainable long term development, besides sorting out the obvious fiscal mess, nothing short of a structural overhaul will suffice. Sentiment aside, the road to economic recovery will be long. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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lochaz-index wrote:kayhara wrote: Things are elephant, acha mediamax most of my midro klass friends are walking on thin very thin string, clients are looking for reasons not to pay, one straight up told me the only way he will pay is if a court orders it, very soon i might have to let some workers go and it kills me because there is nothing i can do, the banks even those we have worked with for very long will not extend credit because they can tell our payments are far in between and dwindling every week,
For mediamax advertisers came into hard times and that obviously affected their business, trust me Keroche Humphrey and the rest who have been hit by KRA can never advertise with Mediamax, funeral and general announcements will not fill the gaps left by the big manufacturers, add to this the social media side and the free newspaper.
I am not sure the repealing of the rate cap will have a huge effect on the economy because banks will be super careful seeing that many firms are at the edge, behind on rent and salaries, tax and deductions like NSSF and NHIF so even a 5 million loan will just not be enough. Spot on. The middle class is always the last to get the memo on economic ruin. As for repealing the rate cap, it can't catalyze a turn around as is being touted on these pages. That is simply wishful thinking. This bear and economic slowdown preceded the caps by one and a half years plus KE is now much further down that perilous rabbit hole than it was in 2016. For sustainable long term development, besides sorting out the obvious fiscal mess, nothing short of a structural overhaul will suffice. Sentiment aside, the road to economic recovery will be long. Road will be long but much better with removal of the rate caps. This repeal is manna from heaven
KQ ABP 4.26
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Rank: Member Joined: 1/15/2015 Posts: 681 Location: Kenya
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lochaz-index wrote:kayhara wrote: Things are elephant. The middle class is always the last to get the memo on economic ruin. From my observation point, these two points say all. @Mugundaman pole, but this is so true.
60% Learning, 30% synthesizing, 10% Debating
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Rank: Member Joined: 9/14/2011 Posts: 869 Location: nairobi
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https://www.nation.co.ke...0904-8605uiz/index.html
In its Kenya Economic Update for October 2019, to be released today, the Bank notes that, “with 43 per cent of domestic debt expected to mature within one year, the government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and over-exposure of commercial banks to these assets”. Are we staring at serious GOK defaults? or what miracle will happen for GOK to pay these loans with the dwindling tax revenues?
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Rank: Member Joined: 2/20/2007 Posts: 767
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heri wrote:https://www.nation.co.ke/news/Economy-in-crisis-World-Bank-warns-of-debt-distress/1056-5330904-8605uiz/index.html
In its Kenya Economic Update for October 2019, to be released today, the Bank notes that, “with 43 per cent of domestic debt expected to mature within one year, the government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and over-exposure of commercial banks to these assets”.
Are we staring at serious GOK defaults? or what miracle will happen for GOK to pay these loans with the dwindling tax revenues? Either print money or tbills and bonds go to 15-20% with corresponding increase in loans rates charged to mwananchi They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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tom_boy wrote:heri wrote:https://www.nation.co.ke/news/Economy-in-crisis-World-Bank-warns-of-debt-distress/1056-5330904-8605uiz/index.html
In its Kenya Economic Update for October 2019, to be released today, the Bank notes that, “with 43 per cent of domestic debt expected to mature within one year, the government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and over-exposure of commercial banks to these assets”.
Are we staring at serious GOK defaults? or what miracle will happen for GOK to pay these loans with the dwindling tax revenues? Either print money or tbills and bonds go to 15-20% with corresponding increase in loans rates charged to mwananchi Rates will fall further in the short term. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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https://www.businessdail...349676-80dlxx/index.htmlWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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Nyonya kunyonya  https://www.businessdail...349434-ootf0l/index.htmlIn 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: Veteran Joined: 4/30/2010 Posts: 1,635
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[quote=Angelica _ann]Nyonya kunyonya https://www.businessdail...49434-ootf0l/index.html[/quote] Good for local manufacturers as imports will become expensive
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