Wazua
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Law Capping interest rates
Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Swenani wrote:Shak wrote:I bank With Equity Bank and my salo is processed through it. I should be having a fair credit rating since I have never defaulted on a loan. However the bank through Equitel still finds it fit to charge me interest of 26pc per annum on a loan. This is the predatory behaviour that has to stop Your salary in not a security, you can borrow today from equitell knowing very well you have been fired and your salary wont be coming to equity anymore. Moreover, due to lack of information(comprehensive) by CRB's banks do not have complete information of the average borrowers like you hence the interest charged factors in the risky borrowers who will borrow at the same rate like you but default. but even with security banks don't lower rates They say it just makes it easier to get a loan
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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There goes Uhunye going back on another promise... Bank bosses are pissed.. Minimum balance for interest bearing account to be KES 1,000,000 If not a risk grade 1 or 2 borrower nenda Mshwari... Nkt! Mark 12:29
Deuteronomy 4:16
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Rank: New-farer Joined: 6/13/2016 Posts: 47 Location: kenya
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I have a question. Will this law affect those who already had loans, or is it only for new loans from the date of "operationalization" or "gazettement" of the law?
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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mikanjoroge wrote:I have a question. Will this law affect those who already had loans, or is it only for new loans from the date of "operationalization" or "gazettement" of the law? Old loans remain unless you refinance "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Bank stocks will be Un attractive until Q1 2017 when the impact will start being assessed,anyone who wanted a loan will make sure they benefit from this law so there will be a dry period of rethinking "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 13,520 Location: nairobi
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Pesa Nane wrote:obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Quote:Statement by Kenya Bankers Association on the Banking (Amendment) Act 2015
Nairobi, 24 August 2016: The Kenya Bankers Association (KBA) is committed to bringing down loan interest rates, promoting a savings culture and enhancing consumer protection, so we welcome the spirit of today’s decision by His Excellency President Uhuru Kenyatta.
We however do not feel that an arbitrary rate cap is in the best interests of the majority of people and businesses that this law seeks to support. The reality is that there is little evidence from other countries that such interventions have helped the majority of citizens, and in a number of countries such laws have been reversed to promote financial inclusion.
However, we as the banking industry remain committed to addressing the fundamental issues that drive up the cost of credit.
Meanwhile, the banks will comply with the law as they continue to provide financial services to their customers. Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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MaichBlack wrote:enyands wrote:Wapi MaichBlack? Ndiye huyu hapa!!! Okay good ameaccept na aka move on. President uhuru has listened to the voice of majority punda amecheka
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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obiero wrote:Pesa Nane wrote:obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. possunt quia posse videntur
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. @obiero being a finance guru is not in question, but don't you think now that banks have no Wanjiku to swindle (a narrative I don't buy) they will play hardball in the auction. Remember banks can tolerate reduced earnings longer than the government can endure a fiscal deficit - Pesa NanePesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 6/23/2009 Posts: 13,520 Location: nairobi
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Pesa Nane wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. @obiero being a finance guru is not in question, but don't you think now that banks have no Wanjiku to swindle (a narrative I don't buy) they will play hardball in the auction. Remember banks can tolerate reduced earnings longer than the government can endure a fiscal deficit - Pesa Nane @pesanane The jury is out.. Guess time will tell. But these are interesting times
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,520 Location: nairobi
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MaichBlack wrote:obiero wrote:streetwise wrote:Us the people. Once we decide no one should stop us @streetwise amen and amen. Over KES 88B combined net profit for Kenyan banks does not make sense to me. That profit made by the banks directly represents the losses made at the dukawalla. Blind capitalism will never be sustainable in Africa. Thats why crime levels keep rising. Opportunity to make an honest living in this country keeps diminishing by the day. Safaricom is also guilty as alleged, but atleast they pay their workers outlandish salaries  @Obiero - You are trying too hard!! You want to say the guys engaging in violent robberies, muggings, break in etc. are doing so because they don't have access to cheap credit?? Get serious! The buggers have access to interest free, collateral free and repayment free "credit" - whatever they rob from you!!! Do they go and start/expand a business and say bye bye to thuggery?? If whatever you are saying is even remotely true, thugs would be engaging in crime only once and then they start a business!!! Thugs are just thugs!!! And most of them are actually from well to do families. The other thugs you elect also have access to more money than the average Kenyan and they are the biggest thugs we have around!!! We the people..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,520 Location: nairobi
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obiero wrote:sparkly wrote:alma1 wrote:You know on this particular thread, the only person who's been honest is Maichblack.
The next person was Liv...Unfortunately by stating the truth, they stated the obvious...It's the gov'ts fault. Ipso facto, it's Uhuru. When you tell Liv and Murchr, Uhuru, these people start wetting their beds
Yet, facts are like Itumbi says, facts.
Now in Kenya when you say Uhuru, guys either start crapping or clapping. Depending...Just like the Donald Trump games...
The fact is Gov't is borrowing tooooo maaaash.
Rates have got to go up!!!!!!
Capping interest rates shall never happen in Kenya. Not when this CBK governor is alive. It shall never happen. Obiero pole. But it shall never happen!!!!
And it's a good thing it never happens because I believe in markets..I believe in water finding its own course.
Yet!!!!!!!!!
The Kenyan banks are just shylocks.
So as much as I'm capitalist, these people have to be stopped from stealing.
As Njunge said, next year we can reform that bill.
Lakini as it stands
Uhuru shall not sign it
Parliament shall be given money and Mpigs shall disappear from the floor
Wanjiku is still screwed because Murchr has another Konza project he's thinking about.
The people making your rates go up are right here on Wazua. Someone has to "lease" their car.
Tafakari hayo kaka.
People weaned on Thatchernomics have too much belief in privatisation and free markets. Need to wake up to the fact that Thatchernomics failed, hence Brexit, Trumpism etc. Govt controls are a necessary evil to maintain sanity in any market. Even the CBR, KBRR are control mechanisms. UK via the LIBOR also avails a guide to sane rates. Current borrowing rates in the country are simply criminal. Whether this is caused by heavy domestic borrowing by the government is debatable Good move by El Presidente
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 1/31/2007 Posts: 303
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Pesa Nane wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. @obiero being a finance guru is not in question, but don't you think now that banks have no Wanjiku to swindle (a narrative I don't buy) they will play hardball in the auction. Remember banks can tolerate reduced earnings longer than the government can endure a fiscal deficit - Pesa Nane This law has thrown in uncertainty in the banking sector therefore banks will choose to slow down lending, probably even freeze it,unwind expensive bank deposits and pack any idle cash in the treasury bills as they try to internalize the Tsunami.This will increase the demand for treasury bills bringing the cost of borrowing for government lower.
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Rank: Elder Joined: 6/23/2009 Posts: 13,520 Location: nairobi
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sparkly wrote:MaichBlack wrote:sparkly wrote:obiero wrote:MaichBlack wrote:obiero wrote:muandiwambeu wrote:Ebenyo wrote:obiero wrote:I told you guys to sell off bank stocks in 2014. Luckily made it out of some major holdings in good time.. but a big percent of your portfolio is still in banks! so, what do you expect to be a fair hair cut on obieros portfolio as a result of kamwanaas house attempt to please Wanjiku. what will be the overall industries' hit in percentage. my fair guess from my lender's perspective (16-14.5)/(16*0.5)*100=18.75% conservetively thieves. COOP & HF will come out strongest in this.. Too little meat to be bitten out from the two. Plus HF has never been strong on deposits being only licensed to have current accounts a few months ago!! HF will have the least interest expense of all listed lenders Hey @Obiero. Bill not signed. And please note I did not put the word 'yet' at the end. Its bound to be signed on Monday 29th Aug 2016 The bankers will visit statehouse with big brown envelop and this story will be forgotten. I like how people replace basic economics with conspiracy theories. But at least, conspiracy theories can be as simple as you want them to be. Oh, big brown envelope. Oh, he owns a bank. Oh, bla bla bla. Why tax your brain with economics? Rent-seeking is not a conspiracy theory my brother @maich. It is the reality. How else do you think people who earn KShs 2m salary, have never run a business still manage to donate KShs 100m per month in harambees and spend KShs 5B in electioneering campaigns? On to the next..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,520 Location: nairobi
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moneydust wrote:Pesa Nane wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:maka wrote:Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. @obiero being a finance guru is not in question, but don't you think now that banks have no Wanjiku to swindle (a narrative I don't buy) they will play hardball in the auction. Remember banks can tolerate reduced earnings longer than the government can endure a fiscal deficit - Pesa Nane This law has thrown in uncertainty in the banking sector therefore banks will choose to slow down lending, probably even freeze it,unwind expensive bank deposits and pack any idle cash in the treasury bills as they try to internalize the Tsunami.This will increase the demand for treasury bills bringing the cost of borrowing for government lower. That is simply logical.. Wonder what else other than that would work
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky! Interesting times indeed., Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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newfarer wrote:MaichBlack wrote:enyands wrote:Wapi MaichBlack? Ndiye huyu hapa!!! Okay good ameaccept na aka move on. President uhuru has listened to the voice of majority Want to know your take on this.
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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guru267 wrote:So now even JM has said he has no other option but to cut Wanjiku out of his portfolio.. Equitel loan products are looking shaky!
Interesting times indeed., Blackmail won't work. It is the law . He will have to pay 7% to wanjiku punda amecheka
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