I appreciate that but I have also observed that when he is somewhat cornered he turns marxist/socio-capitalist. "I shall fear no man but myself"

Wacha ku-sully my name!
My point is that it is stupid [though politics is not logical] to control some prices [in a non-monopolitic environment] & not all...

OMCs rely heavily on financing imports due to the nature of the industry. It is credit driven to an extent. The cost of financing is NOT 'fixed' while the banks can vary the interest rates charged.

Some folks claim OMCs are a cartel yet the hold of the top 5 banks is much HIGHER! If not for the hurdles of financing & the inefficiency of KPC/KPA/KPRL there would be many more significant players in the oil industry...

chief! Thats a fantacy but its ok to dream.

Hold on! Banking has been around even among the unbanked! When I was a kid, my 'cash' was held in trust by my Grandfather. He was my bank even though I was 'unbanked' according to 'official' records!

As for PETROLEUM fuel. Kwani? How many used it in Kenya 100 years ago? Yet, I am sure the forefathers used granaries to store foddstuffs after a harvest. Or even 'lent' some to neighbours which is banking of a non-monetary type. If the jirani died, then it was written off like bad debts!

Big trades going down at Equity. There is also a bid of 1.1 million shares at 27 which is yet to be serviced.

@vvs please look at it from a third world point of view...
The major reason most the african banks were unscathed from the financial crisis was good policy but also the irrelevance in many african economies... The whole thing came and past without a whisper in africa..

But have you seen the impact of rising fuel prices.. Protests everywhere...

Is their any country that devotes a large weighting to lending rates when calculating CPI...
How much consideration to companies give to borrowing rates as opposed to fuel costs???

Why wouldnt they?? They are managing these profits amidst a very slow q1..

I highly doubt the rest of the quarters will b worse than q1

I expect them on friday or latest next week..

LOL... Let's start with the flawed misconceptions!

1) Not all African banks escaped unscathed. You are using a broad brush & some were lucky not always coz of 'good' policies but the (lucky) 'simple' models in use. BTW, the Nigerian banks which were HUGE compared to Kenyan banks were affected. Severely affected. Some went under & are being bailed out by Govt of Nigeria through AMCON.

2) Banks are very relevant in African economies. I can't think of any major African economy where banks are not relevant. Please illustrate with examples of a major (free) economy without banks. In the '3rd world' or 'African' perspective, banking is more than 'Banks' but includes your village moneylender, MFI, even Safaricom charges a fee for Kopa Credit!

3) CPI calculations probably do not include interest since it cannot be measured accurately in a basket of goods. Nevertheless, interest forms a part of the basket through OTHER goods. Your mama mboga who borrows from Equity to buy veggies weekly. Your matatu owner who borrows to buy the van. Your tea/coffee farmer who borrows (or on credit) to buy fertilizer. Your hairstylist who borrows to buy chairs, etc.

4) You are kidding me! "How much consideration to companies give to borrowing rates as opposed to fuel costs???" [I think QW has stolen you ID]

- Firms that 'borrow' are very sensitive to interest rates. If your firm's CFO does not 'consider' the interest rates then I would sell out asap! Let's take KQ, they negotiate interest rates then try to fix them. Why? It is an IMPORTANT & HUGE part of their costs. They also try to 'fix' fuel costs by hedging.

- Compare apples to apples! Many firms would be 20% of the size without borrowing since they finance buildings, equipment, inventory. Fuel costs are almost the same for all businesses in that sector. Interest costs are not so for a leveraged firm a CFO/CEO who does not pay as much consideration to interest costs should be sacked!

As for why protests over fuel & not interest rates? This is merely a matter of perception. What you see vs what you don't see. Consumers are often idiots or are not shown the whole picture.

In Kenya, it is ILLEGAL for retailers to display goods ex-VAT. Why? GoK does NOT want you to know you pay 100 + 16% VAT but want you to pay 116/-. They don't want you grumbling about 16% VAT.

guru, Q1 was anything but slow. Ask CBK. As for Q2, we will have to wait...