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Law Capping interest rates
Rank: Elder Joined: 7/22/2009 Posts: 7,460
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bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: New-farer Joined: 12/9/2015 Posts: 47 Location: +254
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aemathenge wrote:I believe it is time we derived a clear meaning of what constitutes a small and medium enterprise, SMEs. This way, we can be able to think through our posts and stop making what I discern to be failure to differentiate their loans with personal loans. Take, for example, Ms Anzetse Were, a Development Economist, whose article in the Business Daily dated December 4 2016 under the headline: SMEs Grapple With Credit Squeeze In Era Of Rate Cap, clearly fails to distinguish between the two. Extract:“It is not all bad news, however. Saccos (Savings and Credit Cooperative Societies) have become a more attractive financing option particularly given that some already provide credit to members well below current bank rates. This may lead to expansion of this sector thereby broadening financing options for Kenyans. Further, increased difficulty in assessing loans will make it harder for Kenyans to take on credit for consumptive rather than investment purposes. Applications will have to be thought through more rigorously than perhaps previously. This is good news.” Link. From S.2 of the Micro and Small Enterprises Act Micro Enterprise: a firm, trade, service, industry or a business activity— (a) whose annual turnover does not exceed five hundred thousand shillings; (b) which employs less than ten people; and No. 55 of 2012 Micro and Small Enterprises [Issue 2] 8 (c) whose total assets and financial investment shall be as determined by the Cabinet Secretary from time to time, and includes— (i) the manufacturing sector, where the investment in plant and machinery or the registered capital of the enterprise does not exceed ten million shillings; (ii) the service sector and farming enterprises where the investment in equipment or registered capital of the enterprise does not exceed five million shillings Small Enterprise: a firm, trade, service, industry or a business activity— (a) whose annual turnover ranges between five hundred and five million shillings; and (b) which employs between ten and fifty people; and (c) whose total assets and financial investment shall be as determined by the Cabinet Secretary from time to time, and includes— (i) the manufacturing sector, where the investment in plant and machinery as well as the registered capital of the enterprise is between ten million and fifty million shillings; and (ii) service and farming enterprises, where the equipment investment as well as registered capital of the enterprise is between five million and twenty million shillings;
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Rank: Member Joined: 8/17/2011 Posts: 207 Location: humu humu
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The govt tax or borrows money for redistribution purposes. To spend. when this money is spent it adds on to money supply. m1 m2 m3 trends in Kenya have been steadily rising these past yrs bcoz of massive govt spending. So, much of the recently floated bond will be spent back in the economy. 2016-17 budget is 2.8 trillion. Total debt repayment (domestic) interest +principal is 369Billion. foreign debt repayment interest +principle is 97 billion (a burden to society the money going overseas). Its true that govt domestic borrowing could "crowd" out investments, but the multiplier effect of our govt spending 2.8 billion during the year could offset it as economic models have shown.
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. punda amecheka
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Rank: Veteran Joined: 11/13/2015 Posts: 1,596
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Loving the posts here. Njaanuary will be so interesting. Talk to guys in the real estate, prices are starting to look south rapidly. I have seen one quote from 1m last year to now 800k and no buyers.
Malenge ni mboga...
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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newfarer wrote:MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. @newfarer the mama mboga. Mama mbogas have valid dreams to grow. Mshwari will support them for now, but it won't give their dreams life. For their dreams to start a transport l, construction, export business etc, cannot be supported by Mshwari. Bigger dreams require bigger credit facility. The likes only a bank can extend. The way things will be, mama mboga won't access that bank credit. Meaning she'll remain a small-timer mama mboga. Dreams bottled up. In the meantime, majority of her customers, vibarua guys and other sme owners, will start buying on credit and unable to pay when debt is due. Things will get thicker, she'll take a 'bigger ' mshwari loan. With customers not paying on time & well, she'll default on her mshwari loan. She'll try borrowing from hubby/bro/sis,but even them, the pay hasn't been coming and the bro lost his job. For the first time she'll not open her kiosk. She'll be opening a few days a week,before she gets pregnant. All thanks to interest rate cap.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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mkeiy wrote:newfarer wrote:MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. @newfarer the mama mboga. Mama mbogas have valid dreams to grow. Mshwari will support them for now, but it won't give their dreams life. For their dreams to start a transport l, construction, export business etc, cannot be supported by Mshwari. Bigger dreams require bigger credit facility. The likes only a bank can extend. The way things will be, mama mboga won't access that bank credit. Meaning she'll remain a small-timer mama mboga. Dreams bottled up. In the meantime, majority of her customers, vibarua guys and other sme owners, will start buying on credit and unable to pay when debt is due. Things will get thicker, she'll take a 'bigger ' mshwari loan. With customers not paying on time & well, she'll default on her mshwari loan. She'll try borrowing from hubby/bro/sis,but even them, the pay hasn't been coming and the bro lost his job. For the first time she'll not open her kiosk. She'll be opening a few days a week,before she gets pregnant.
All thanks to interest rate cap.  ..too hillarious. Everything bad will be blamed on the caps. What about the tweet below to see how things are being taken to a whole new lunatic level... Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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He was replying to the tweet below on FCB laying off staff ironicaly due to rate caps. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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The whole debate on interest rate caps will at the end of the day boil down to one point; which side of the equation are you. For a net borrower like myself the interest rate saving with the resultant accelerated principal repayments is just music to my years. Not everyone will be happy, but isn't that just life. Long live the rate caps. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: New-farer Joined: 10/14/2016 Posts: 25 Location: Nairobi
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Gatheuzi wrote: He was replying to the tweet below on FCB laying off staff ironicaly due to rate caps.
There is an interest factor in shariah loans, they call it 'profit'. The 'Profit' is determined by interest rates but they dont disclose this to the clients.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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During the Soviet dictatorship of Stalin, he (Stalin) came to one politburo meeting with a live chicken. He started to pluck its feathers one by one off. The chicken quacked in pain, blood oozing from its pores. It gave out heartbreaking cries but Stalin continued without remorse plucking feather after feather until the chicken was completely naked. After that he threw the chicken on the ground and from his pockets took out some chicken feed and he started to throw it at the poor creature. It started eating and as he walked away, the chicken followed him and sat at his feet feeding from his hand. Stalin then told members of his party leadership 'This chicken represents the people, you must disempower them, brutalise them, beat them up and leave them If you do this and then give them peanuts when they are in that helpless and desperate situation, they will blindly follow you for the rest of their life.They will think you are a hero forever. They will forget it is you who brought them to that situation in the first place. Does this sounds familiar?? Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 1/3/2014 Posts: 1,063
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Ericsson wrote:During the Soviet dictatorship of Stalin, he (Stalin) came to one politburo meeting with a live chicken. He started to pluck its feathers one by one off.
The chicken quacked in pain, blood oozing from its pores. It gave out heartbreaking cries but Stalin continued without remorse plucking feather after feather until the chicken was completely naked. After that he threw the chicken on the ground and from his pockets took out some chicken feed and he started to throw it at the poor creature. It started eating and as he walked away, the chicken followed him and sat at his feet feeding from his hand.
Stalin then told members of his party leadership 'This chicken represents the people, you must disempower them, brutalise them, beat them up and leave them If you do this and then give them peanuts when they are in that helpless and desperate situation, they will blindly follow you for the rest of their life.They will think you are a hero forever. They will forget it is you who brought them to that situation in the first place.
Does this sounds familiar?? This is deep. Consistency is better than intensity
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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PeterReborn wrote:Ericsson wrote:During the Soviet dictatorship of Stalin, he (Stalin) came to one politburo meeting with a live chicken. He started to pluck its feathers one by one off.
The chicken quacked in pain, blood oozing from its pores. It gave out heartbreaking cries but Stalin continued without remorse plucking feather after feather until the chicken was completely naked. After that he threw the chicken on the ground and from his pockets took out some chicken feed and he started to throw it at the poor creature. It started eating and as he walked away, the chicken followed him and sat at his feet feeding from his hand.
Stalin then told members of his party leadership 'This chicken represents the people, you must disempower them, brutalise them, beat them up and leave them If you do this and then give them peanuts when they are in that helpless and desperate situation, they will blindly follow you for the rest of their life.They will think you are a hero forever. They will forget it is you who brought them to that situation in the first place.
Does this sounds familiar?? This is deep. This is Kenya today...every tribe follows the Stalinist chicken model. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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PeterReborn wrote:Ericsson wrote:During the Soviet dictatorship of Stalin, he (Stalin) came to one politburo meeting with a live chicken. He started to pluck its feathers one by one off.
The chicken quacked in pain, blood oozing from its pores. It gave out heartbreaking cries but Stalin continued without remorse plucking feather after feather until the chicken was completely naked. After that he threw the chicken on the ground and from his pockets took out some chicken feed and he started to throw it at the poor creature. It started eating and as he walked away, the chicken followed him and sat at his feet feeding from his hand.
Stalin then told members of his party leadership 'This chicken represents the people, you must disempower them, brutalise them, beat them up and leave them If you do this and then give them peanuts when they are in that helpless and desperate situation, they will blindly follow you for the rest of their life.They will think you are a hero forever. They will forget it is you who brought them to that situation in the first place.
Does this sounds familiar?? This is deep. Very deep!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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newfarer wrote:MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. I have nothing against M-shwari. It serves it's purpose and helps very many people out. Small scale traders love it. If it starts raining and a hawker who was selling socks for example has no cash, he will simply go to M-shwari, get a loan and in 10 minutes he will be selling umbrellas. The money he makes (given that he can buy new stock everyday and make a profit on it by close of business) far exceeds the interest he will pay - rate cap or no rate cap. All I am saying is that it is extremely pedestrian for one to argue that given his M-shwari applicable loan has been doubled is evidence that there is no credit crunch while virtually everyone who runs a business that needs an operating capital of more than a couple of hundred thousand (let alone a fww millions) is complaining that it is now harder for them to get credit. Talk to real people running real businesses sio kuleta opinion za "base" hapa kama facts!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 13,554 Location: nairobi
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MaichBlack wrote:PeterReborn wrote:Ericsson wrote:During the Soviet dictatorship of Stalin, he (Stalin) came to one politburo meeting with a live chicken. He started to pluck its feathers one by one off.
The chicken quacked in pain, blood oozing from its pores. It gave out heartbreaking cries but Stalin continued without remorse plucking feather after feather until the chicken was completely naked. After that he threw the chicken on the ground and from his pockets took out some chicken feed and he started to throw it at the poor creature. It started eating and as he walked away, the chicken followed him and sat at his feet feeding from his hand.
Stalin then told members of his party leadership 'This chicken represents the people, you must disempower them, brutalise them, beat them up and leave them If you do this and then give them peanuts when they are in that helpless and desperate situation, they will blindly follow you for the rest of their life.They will think you are a hero forever. They will forget it is you who brought them to that situation in the first place.
Does this sounds familiar?? This is deep. Very deep!!! Tragically deep.. Like what happened to the Kurji family last week.. I could empathise seeing as my land in Kitengela was almost taken away in similar fashion
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: 7/22/2009 Posts: 7,460
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newfarer wrote:MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. I have nothing against M-shwari. It serves it's purpose and helps very many people out. Small scale traders love it. If it starts raining and a hawker who was selling socks for example has no cash, he will simply go to M-shwari, get a loan and in 10 minutes he will be selling umbrellas. The money he makes (given that he can buy new stock everyday and make a profit on it by close of business) far exceeds the interest he will pay - rate cap or no rate cap. All I am saying is that it is extremely pedestrian for one to argue that given his M-shwari applicable loan has been doubled is evidence that there is no credit crunch while virtually everyone who runs a business that needs an operating capital of more than a couple of hundreds of thousands (let alone a few millions) is complaining that it is now harder for them to get credit. Talk to real people running real businesses sio kuleta opinion za "base" hapa kama facts!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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newfarer wrote:MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. One more thing @newfarer, there is a good reason I would never go to discuss important issues like rate capping with drunk villagers even if I found them discussing the topic. Unfortunately there is nothing to keep those drunk villagers from commenting in Wazua. Note: Emphasis on Drunk villagers lest you accuse me of being anti all villagers. Questions:
1) At what point did I "dharau" or even imply I "dharau" Mama Mbogas?? Actually when did I even mention them?? 2) Who said M-shwari money sio pesa?? 3) Who said there is a lifestyle - fake or otherwise - I am trying to finance using debt. 4) Who discounted the contribution of any group of Kenyans to the economy? It is very difficult discussing issues with some fellows. I am sure even drunk (On illicit brews!) villagers would feel insulted to be compared to them!!! Advice: Stick to the facts. Call me out on things I have said and done. Not some fabricated bull crap!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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MaichBlack wrote:newfarer wrote:MaichBlack wrote:bennry wrote:To be Honest business is tough. I had a loan kwa one of this small banks and they were still charging me 22%. I cleared the loan in the hope that i would get a topup but wapi...For other banks to give you a loan it has to be secured. if its a car its around 70% of the forced value.
The last quarter of this year has been thick. sijui January vile watu wa SMEs are going to survive. Employees wanagojea bonuses but pesa hakuna...
Things are thick.
Then the government is on a looting spree and we are still being indifferent just cause we are sitting on our comfort zones. 2017 is going to be so so so bad.... Try telling that to the Mshwari Crew. And guess what, they will argue even with you and tell you what happened to you did not happen! Maringo nayo, mshwari pia ni pesa, Hawa mama mbogas unadharau are the ones who drive the real economy . lower middle income earners Kama most Wazuans ni kuimport second hand everything.wachana na sisi mama mbogas na mshwari yetu. If you are finding it hard to get funding for the fake lifestyle you are living, we are okay with our mshwari. One more thing @newfarer, there is a good reason I would never go to discuss important issues like rate capping with drunk villagers even if I found them discussing the topic. Unfortunately there is nothing to keep those drunk villagers from commenting in Wazua. Note: Emphasis on Drunk villagers lest you accuse me of being anti all villagers. Questions:
1) At what point did I "dharau" or even imply I "dharau" Mama Mbogas?? Actually when did I even mention them?? 2) Who said M-shwari money sio pesa?? 3) Who said there is a lifestyle - fake or otherwise - I am trying to finance using debt. 4) Who discounted the contribution of any group of Kenyans to the economy? It is very difficult discussing issues with some fellows. I am sure even drunk (On illicit brews!) villagers would feel insulted to be compared to them!!! Advice: Stick to the facts. Call me out on things I have said and done. Not some fabricated bull crap!!! Hapa ujiaji tu! Broke blonde venting. Take a mshwari loan itulie kidogo, hope is not gone punda amecheka
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