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Law Capping interest rates
Rank: Elder Joined: 7/23/2008 Posts: 3,017
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newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Ditto, last year banking as an industry made record profits. And yes, if you are credit worthy, banks are still begging you to borrow, for example they are constantly sending me new borrowing options and products to choose from. What the rate cap does is it allows for predictability of interest charges. By the way, the capping of rates is not govt price fixing, its simply a regulation, banks can still compete and lend at CBR+1, or2, or3, or4, but no they won't, we no they are greedy and would rather lend at +4. I am yet to hear of any customer who is getting a lower than CBR+4 because of his good credit ratings "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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Obi 1 Kanobi wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Ditto, last year banking as an industry made record profits. And yes, if you are credit worthy, banks are still begging you to borrow, for example they are constantly sending me new borrowing options and products to choose from.
What the rate cap does is it allows for predictability of interest charges. By the way, the capping of rates is not govt price fixing, its simply a regulation, banks can still compete and lend at CBR+1, or2, or3, or4, but no they won't, we no they are greedy and would rather lend at +4. I am yet to hear of any customer who is getting a lower than CBR+4 because of his good credit ratings Boss, when we talk about an economy growing, we are not referring to personal loans for salaried people. Jeez !!!! Tell me any bank offering loans to the key sectors. Manufacturing, Real estate. Just one. For the second year in a row, the country has recorded the lowest cement consumption since 2003. We call it a recession but you wouldn't know sitting in your employer's office holding the remote for the AC. Its tiring being a Kenyan.
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Rank: Member Joined: 6/6/2016 Posts: 167 Location: Nairobi
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FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. If this trucking business was so good and flourishing, why didn't the banks continue to finance it even after the caps? something doesn't add up. Perhaps it was all along a poor business being propped up by availability of credit
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Rank: Member Joined: 4/21/2015 Posts: 151
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FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. There is the SGR factor here, no?
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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snifadog wrote:FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. If this trucking business was so good and flourishing, why didn't the banks continue to finance it even after the caps? something doesn't add up. Perhaps it was all along a poor business being propped up by availability of credit The banks stopped financing SMEs in general because our crooked and greedy government is borrowing from the same banks at 13%. Why would a bank bother employing credit analysts to process customer applications while a corrupt govt wants the same money. 100% risk free.
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Rank: Member Joined: 1/1/2011 Posts: 396
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Angelica _ann wrote:Ericsson wrote:AndyC wrote:jmbada wrote:The first big bank to break ranks....Stanchart offering to buy out loans at 11.5% Link? Tough Terms and conditions C&P here!!! How do I C&P in Wazua?
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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snifadog wrote:FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. If this trucking business was so good and flourishing, why didn't the banks continue to finance it even after the caps? something doesn't add up. Perhaps it was all along a poor business being propped up by availability of credit Everything is propped up by availability of credit. Even GoK was begging wanjiku for credit on M-Akiba. Money=Debt that's how the modern economy works. On the High court decision it was a hollow victory. On the critical issue of monetary policy the court was not convinced interest rates is a function of monetary policy(  ) essentially said it can be run on whims of politicians so parliament should straighten up the language in the law to remove vagueness and equally punish banks and customers who want to borrow outside of the law. All in all it was a very dumb decision not worth discussion on wazua
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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AndyC wrote:FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. There is the SGR factor here, no? The SGR capacity is 800 TEUs per day. The Mombasa port handles over 1M TEUs annually. Quick maths tell you SGR can only handle < 20% of cargo. And this only after the government forced importers to use SGR. Left to market forces, SGR would be left with less than 5% of the market. BTW, after SGR brings containers to the Nairobi ICD, trucks have to make the final delivery to the customer's doorstep. From Embakasi to Industrial area costs 20K. The truck will consume < 5K on fuel. The trip will take less than 1 hour. To thika its 30K.
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Rank: Member Joined: 2/20/2007 Posts: 767
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FRM2011 wrote:snifadog wrote:FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. If this trucking business was so good and flourishing, why didn't the banks continue to finance it even after the caps? something doesn't add up. Perhaps it was all along a poor business being propped up by availability of credit The banks stopped financing SMEs in general because our crooked and greedy government is borrowing from the same banks at 13%. Why would a bank bother employing credit analysts to process customer applications while a corrupt govt wants the same money. 100% risk free. I have never found anyone to explain to me, in simple language that my simple mind can understand, how on earth does someone who was servicing loans on time at 20% interest suddenly become a poor credit risk at 13% interest. Even senior bankers cannot explain this phenomenon. 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: Member Joined: 7/1/2009 Posts: 272
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tom_boy wrote:FRM2011 wrote:snifadog wrote:FRM2011 wrote:newfarer wrote:tom_boy wrote:Interest rate caps should stay. So far I have not seen any tangible effect of the caps. Banks are still making super profits. Credit worthy people are still getting loans. Shida iko wapi? me too .if you are creditwothy you should not have problem with the cap..I have seen banks beg me to take loan with them. shida iko wapi? Allow me to give you a situation on a specific industry. I know a thing or two about long-distance trucking. 5 years ago, banks were falling over themselves to finance customers in this industry. The trailer part of these trucks are locally built. At some point around 2013, Bhachu & Randon who are the market leaders had a 4-months waiting period for orders. Smaller players expanded to fill in the gap. Load trailers, Ocean trailers, Hans trailers, Trans-trailers, TTL, Supa trailers e.t.c. These were employing 1,000s of artisans to fabricate the bodies. Since the rate capping, only Stanbic and NIC are willing to finance trucks and they cherry-pick the very best customers. Equity, KCB, coop, Barclays and Stanchart don't even look at asset finance applications after the rate cap. As financing dried, these body-builders retrenched massively. Today, you can walk into Bhachu and they start working on your order tomorrow. Business is that bad. No other president would have signed this bill. Even Moi, daft and crooked as he was, refused to sign. Only Uhuru could. If this trucking business was so good and flourishing, why didn't the banks continue to finance it even after the caps? something doesn't add up. Perhaps it was all along a poor business being propped up by availability of credit The banks stopped financing SMEs in general because our crooked and greedy government is borrowing from the same banks at 13%. Why would a bank bother employing credit analysts to process customer applications while a corrupt govt wants the same money. 100% risk free. I have never found anyone to explain to me, in simple language that my simple mind can understand, how on earth does someone who was servicing loans on time at 20% interest suddenly become a poor credit risk at 13% interest. Even senior bankers cannot explain this phenomenon. @tom_boy in an era of high staff turnover in banks and other organizations, you the customer becomes a demographic, not an individual. Relationships and history cease to matter. At least that's what I've observed with Stock Brokers, Insurance Companies, Banks, Telcos etc.
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