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Law Capping interest rates
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Lolest!
#581 Posted : Wednesday, August 24, 2016 8:00:13 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
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
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
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guru267
#582 Posted : Wednesday, August 24, 2016 8:01:42 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
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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  | | Edit by user: Wednesday, August 24, 2016 8:02 PM | Reason: Not specified
mikanjoroge
#583 Posted : Wednesday, August 24, 2016 8:02:55 PM
Rank: New-farer

Joined: 6/13/2016
Posts: 47
Location: kenya
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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Pesa Nane
#584 Posted : Wednesday, August 24, 2016 8:04:45 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
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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murchr
#585 Posted : Wednesday, August 24, 2016 8:08:34 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
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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mlennyma
#586 Posted : Wednesday, August 24, 2016 8:08:40 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
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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  | | Edit by user: Wednesday, August 24, 2016 8:13 PM | Reason: Not specified
obiero
#587 Posted : Wednesday, August 24, 2016 8:21:52 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,256
Location: nairobi
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
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Pesa Nane
#588 Posted : Wednesday, August 24, 2016 8:25:55 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
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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newfarer
#589 Posted : Wednesday, August 24, 2016 8:30:32 PM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
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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maka
#590 Posted : Wednesday, August 24, 2016 8:32:43 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
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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