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Law Capping interest rates
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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newfarer wrote: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 He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 6/23/2009 Posts: 14,261 Location: nairobi
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guru267 wrote:newfarer wrote: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 He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum COOP, IMH, KQ, MTNU
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Rank: Member Joined: 2/20/2007 Posts: 767
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Pesa Nane wrote:tom_boy wrote:murchr wrote:Impunity wrote:kawi254 wrote:Does this also affect mobile banking loans e.g Equitel (24%p.a), M-shwari and such? M-suruari is 90%pa...7.5&% pm. No @muchr, please clarify. Does the new act differentiate between normal loan and mobile loan. The bill addressed BANKS and FINANCIAL INSTITUTIONS only. If the loan is from a BANK expect it to be capped. Your accessing the money through mobile, TT, Cheque, SWIFT, cash, etc should be immaterial. That was my reading of the act. Fafanua Muchr, hii mobile loan haitoki kwa bank ! 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: Elder Joined: 12/7/2012 Posts: 11,936
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tom_boy wrote:Pesa Nane wrote:tom_boy wrote:murchr wrote:Impunity wrote:kawi254 wrote:Does this also affect mobile banking loans e.g Equitel (24%p.a), M-shwari and such? M-suruari is 90%pa...7.5&% pm. No @muchr, please clarify. Does the new act differentiate between normal loan and mobile loan. The bill addressed BANKS and FINANCIAL INSTITUTIONS only. If the loan is from a BANK expect it to be capped. Your accessing the money through mobile, TT, Cheque, SWIFT, cash, etc should be immaterial. That was my reading of the act. Fafanua Muchr, hii mobile loan haitoki kwa bank ! Mobile is just the delivery platform. Loan is from Bank!!!!! Cap it all!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: New-farer Joined: 6/13/2016 Posts: 47 Location: kenya
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Won't the banks find a way round this. For example, increase fees. Like if you want to borrow a million, they say there is an "application fee" of 10,000, a monthly payment processing fee of 5,000, branch visit fee, tech fee, . e.t.c..
We were told free primary education was "free", but many other little fees cropped up all over the place.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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obiero wrote:guru267 wrote:newfarer wrote: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 He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum Good for them... Too bad that portion is a minority... The majority will be at 0% on deposits and will then be shafted by increased transaction fees.. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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guru267 wrote:obiero wrote:guru267 wrote:newfarer wrote: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 He has no problem with the law... Wanjiku will just have to come up with the minimum deposit of KES 1,000,000 to open an interest bearing savings account... There is a good portion of Kenyans that will and can afford to raise that minimum 1m sum Good for them... Too bad that portion is a minority... The majority will be at 0% on deposits and will then be shafted by increased transaction fees.. Then the transaction fee will become the next battlefront. Banks can run but they can't hide. The law does not set a minimum deposit limit for interest bearing thus the minimum is presumed to be Ksh.1.bytheway with the heat on banks it would be insane to set the 1 million minimum. They will just be vindicating the president and mps punda amecheka
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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alotoftalk wrote:If Uhuru signs the Bill this will be hat-trick against his own interests. From an economic perspective (inflation, capital flight, contracted lending etc), a business perspective (CBA) and political perspective (due to economic trouble, loss of credibility among the business class, political donations, RAO already pushing for it etc)
I actually want him to sign it, the same way I want Americans to elect Trump and how I wanted Britons to vote for Brexit. These are real life experiences on the effects negative or otherwise of populist policy. This year already looks like one for the records. Everything that you think is unimaginable will happen. Brexit,interest rate cap, even KQ became entered the matatu industry...next it's Trump Investment philosophy development in progress...
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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Bankers and people who have bank shares should just stop lying to people on this forum and in their lives. We told you Uhuru had to sign or go home. You kept on talking about Wanjiku suffering etc. You are still talking about Wanjiku suffering. Listen carefully. Those shylocking tabias just died. Including that msuruari thing. If you make it harder for potential customers to borrow from you, life for you shall go the Ekuete vs Barclays way....There shall be another alternative soon and you too shall die. Hii dunia sio ya Kenyan banks na Wanjiku sio mama yake. If they increase those rates, I'm sure another law shall be created just for that. Lakini shylocking in the name of lending just had to go....Now this masurauri thing, cofek should take to court kesho. You can already see they want to pretend the money is not from financial institution....Kweli CBA ni burukenge? Thieves are not good people. Tumeelewana?
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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alma1 wrote:Bankers and people who have bank shares should just stop lying to people on this forum and in their lives.
We told you Uhuru had to sign or go home.
You kept on talking about Wanjiku suffering etc.
You are still talking about Wanjiku suffering.
Listen carefully.
Those shylocking tabias just died. Including that msuruari thing.
If you make it harder for potential customers to borrow from you, life for you shall go the Ekuete vs Barclays way....There shall be another alternative soon and you too shall die.
Hii dunia sio ya Kenyan banks na Wanjiku sio mama yake.
If they increase those rates, I'm sure another law shall be created just for that.
Lakini shylocking in the name of lending just had to go....Now this masurauri thing, cofek should take to court kesho.
You can already see they want to pretend the money is not from financial institution....Kweli CBA ni burukenge? This hurts very few players in the industry. Wanjiku won't feel the pain now but will do when credit dries up and they'll be forced to go underground to borrow. And I as a shadow banker in an unregulated space will charge them a punitive rate since they have no where else to turn. What hurts banks more is the deposit rate peg rather than the interest rate cap. Small banks which are already paying higher rates while being viewed as more risky; will pay higher. This will kill all the small banks and open a new frontier of shadow banking (think credit only MFIs, online lenders etc) A new normal has arrived and we'll accept and move on. This has actually created a new opportunity for us the shadow banking entrepreneurs. All hail the chief! Investment philosophy development in progress...
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