Sufficiently Philanga....thropic wrote:Mr.Kaifastus, if GoK is really serious about single digit yields, it should first start by not accepting high bids on the 91 day paper,9% for now should be the ceiling.
Why should i lend to wanjiku at single digits then struggle following up with her for repayments and stuff like that if i can lend risk free to Treasury at 11.5%?
Am not talking abt single digit interest rates. At least not now,perhaps in future, if economic fundamentals improve and the Tbills plummet to around 4-5%,a single digit might be possible. bcoz then,i reckon the CBRR could lie within the same percentage point neighborhood.
The Gok accepts expensive money bcoz its thirsty for funds.we all hope the eurobond will correct this in the short term. in the long term,i hope that KRA improves its targets,oil funds starts to flow, business environment improves,county structures strengthened who knows how high we shall fly.forget the present insecurity,international investors WILL not ignore Kenya..