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Law Capping interest rates
Rank: Member Joined: 10/6/2015 Posts: 249 Location: Nairobi
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aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Word... https://www.businessdail...68006-amgyq4/index.html
Never lose your position in a bull market,BTFD.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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mamilli wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Word... https://www.businessdail...68006-amgyq4/index.html
Parliament is proving to dance to the tunes of party owners .No principles "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing....  Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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wukan wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing.... Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
Thank heavens that the presidential memo has been supported.. Its better that we be hit with the tax hikes than grind to a halt as a nation
KQ ABP 4.26
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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obiero wrote:wukan wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing.... Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
Thank heavens that the presidential memo has been supported.. Its better that we be hit with the tax hikes than grind to a halt as a nation Have you considered that tax hikes do not necessarily lead to an increase in revenue to fund the ever expansionary fiscal policy? It may very well lead to the halt you allude to. What is happening is the equivalent of killing/hacking to bits/starving the goose that lays the golden egg. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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wukan wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing.... Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
GoK simply doesn't intend to make the necessary adjustments both on the fiscal end (austerity) and the monetary side(remove the shackle called rate cap) to ensure the boat is able to navigate choppy waters ahead. With demand inflation having tapped out (partly thanks to a private sector recession/credit freeze), a rigid interest rate regime (which has helped the government to maintain its copious appetite for debt but at a very steep price that will be paid later) that leaves the KES as the only adjustment mechanism. That implies devaluation is a certainty. Heck, the market could help it on its way. 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:obiero wrote:wukan wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing.... Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
Thank heavens that the presidential memo has been supported.. Its better that we be hit with the tax hikes than grind to a halt as a nation Have you considered that tax hikes do not necessarily lead to an increase in revenue to fund the ever expansionary fiscal policy? It may very well lead to the halt you allude to. I'm on a different school of thought that guides me to believe that without the hikes government wouldn't be able to sustain itself
KQ ABP 4.26
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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obiero wrote:lochaz-index wrote:obiero wrote:wukan wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing.... Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
Thank heavens that the presidential memo has been supported.. Its better that we be hit with the tax hikes than grind to a halt as a nation Have you considered that tax hikes do not necessarily lead to an increase in revenue to fund the ever expansionary fiscal policy? It may very well lead to the halt you allude to. I'm on a different school of thought that guides me to believe that without the hikes government wouldn't be able to sustain itself The situation KE finds itself is not the realm of school of thoughts. It is pretty straightforward: if fiscal consolidation doesn't happen hard and fast, the economy will suffer for a long time. That means even the revenue KRA is collecting (inclusive of monies from tax hikes) will keep shrinking year on year. 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:obiero wrote:lochaz-index wrote:obiero wrote:wukan wrote:aemathenge wrote:Copy and Paste Extract: Quote:Hope for banks as Rotich says interest cap will be revisited
National Treasury Cabinet Secretary Henry Rotich has announced that the government is planning to “revisit” the interest rate capping law in a move that he argues will support economic growth by reviving lending to the private sector.
If introduced and adopted by the National Assembly, the changes to the Banking Act will boost the profitability of banks. https://www.nation.co.ke...67642-3lt8qs/index.html
Stop listening to people in ivory towers and prepare for the hard landing.... Quote:Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya. Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF). https://www.businessdail...7798-7nlocpz/index.html
Thank heavens that the presidential memo has been supported.. Its better that we be hit with the tax hikes than grind to a halt as a nation Have you considered that tax hikes do not necessarily lead to an increase in revenue to fund the ever expansionary fiscal policy? It may very well lead to the halt you allude to. I'm on a different school of thought that guides me to believe that without the hikes government wouldn't be able to sustain itself The situation KE finds itself is not the realm of school of thoughts. It is pretty straightforward: if fiscal consolidation doesn't happen hard and fast, the economy will suffer for a long time. That means even the revenue KRA is collecting (inclusive of monies from tax hikes) will keep shrinking year on year. Only PAYE would drastically reduce due to job cuts.. However, SME and manufacturing are likely to continue as it's not anticipated that the guys who lose jobs will leave the country.. They will seek a living, probably as a small scale trader
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,217 Location: nairobi
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obiero wrote:Ericsson wrote:obiero wrote:obiero wrote:obiero wrote:Spikes wrote:obiero wrote:mlennyma wrote:obiero wrote:murchr wrote:obiero wrote:Angelica _ann wrote:Wow KCB headed to 70bob!!! Kenya Govt and the People of Kenya are distinct Layman English please The law won’t be reversed to repeal is to abolish/anull a law or an act of parliament. .prophet obiero you mean this word was used wrongly ? I mean that it was a political response to IMF that will not garner real political support in the House. To repeal it cannot be via twitter feeds, this thing is hardcoded in wanjiku who prefers no debt to the mercinary rates that were being bandied by Kenyan banks It should be mercenary. The problem emanates from attending shithole schools where a young bugger used to receive instructions under a tree inside squalid makeshift structures. It was written.. MPs will not support the amendment via orders from above! Anyone still waiting for a repeal? Bank margins continue being squeezed via the main income line being lending.. It's not easy for the Kenyan financial industry right now. Expect more consolidation Watch and learn. No MP will risk loosing the next term https://www.businessdail...1546-ki208bz/index.html
I think the opposite will happen,the bill to repeal/ammend the interest rates cap law will sail through Already the signs are ominous.. Talk to your legislative friends, if you have any The rate cap is here to stay.. Remember DP said he needs single digit lending rates, an idea Raila believes in too..
KQ ABP 4.26
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