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Law Capping interest rates
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:penkon wrote:muandiwambeu wrote:Angelica _ann wrote:maka wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution Court of Appeal stated in the decision of *Benjoh Amalgamated Limited & another v Kenya Commercial Bank Limited [2014] eKLR* "A constitution looks forward and backward, vertically and horizontally, as it seeks to re-engineer the social order. In this way, a constitution may and does embody retrospective provisions or provisions with retrospective ingredients. However, in interpreting the constitution to determine whether it countenances retrospective application of any of its provisions, a court of law must pay due regard to the language of the constitution. If the words used in a particular provision are forward looking and do not contain even a whiff of retrospectivity, the court ought not to import it into the language of the constitution. Such caution is even more necessary if the importation of restrospectivity would have the effect of divesting an individual of their rights which had legitimately become vested before the commencement of the constitution.” Dated and delivered at Nairobi this 20th day of June 2014. *G. B. M. KARIUKI SC* *D. K. MUSINGA* *W. OUKO* JUDGES OF APPEAL So, what does this say in laywoman language  banks are legal entities like u n me. you can not compel them to make losses on past commitments because of ur recently acquired wisdom. at best part performance would suffice willingly. ie payoff, renegotiate or naturally the contract remains in full force. who will u be benefiting in looking backwards and who would u be reinvesting their rights in so doing. the bank or the borrower? but you have the liberty to legally divorce if you found a sweeter gachungwa as long as the other spouse consents. 'CFC Stanbic has becomes one of the first bank to cut rates for existing loans following the move by President Uhuru Kenyatta to sign the Bill capping interest rates on bank loans into law.:d/ '  That move is daring but not supported by wisdom Wisest move to make for now. my uncles advice to my brother has always been, if you happen to quarrel your wife, chapa yenye ukimpeleka kwa kitanda or another man is waylaying on her. how else would CFC keep the sore wife home than to lead her to bed again than wait and loose her.  ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 2/20/2007 Posts: 767
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muandiwambeu wrote:obiero wrote:penkon wrote:muandiwambeu wrote:Angelica _ann wrote:maka wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution Court of Appeal stated in the decision of *Benjoh Amalgamated Limited & another v Kenya Commercial Bank Limited [2014] eKLR* "A constitution looks forward and backward, vertically and horizontally, as it seeks to re-engineer the social order. In this way, a constitution may and does embody retrospective provisions or provisions with retrospective ingredients. However, in interpreting the constitution to determine whether it countenances retrospective application of any of its provisions, a court of law must pay due regard to the language of the constitution. If the words used in a particular provision are forward looking and do not contain even a whiff of retrospectivity, the court ought not to import it into the language of the constitution. Such caution is even more necessary if the importation of restrospectivity would have the effect of divesting an individual of their rights which had legitimately become vested before the commencement of the constitution.” Dated and delivered at Nairobi this 20th day of June 2014. *G. B. M. KARIUKI SC* *D. K. MUSINGA* *W. OUKO* JUDGES OF APPEAL So, what does this say in laywoman language banks are legal entities like u n me. you can not compel them to make losses on past commitments because of ur recently acquired wisdom. at best part performance would suffice willingly. ie payoff, renegotiate or naturally the contract remains in full force. who will u be benefiting in looking backwards and who would u be reinvesting their rights in so doing. the bank or the borrower? but you have the liberty to legally divorce if you found a sweeter gachungwa as long as the other spouse consents. 'CFC Stanbic has becomes one of the first bank to cut rates for existing loans following the move by President Uhuru Kenyatta to sign the Bill capping interest rates on bank loans into law.:d/ ' That move is daring but not supported by wisdom Wisest move to make for now. my uncles advice to my brother has always been, if you happen to quarrel your wife, chapa yenye ukimpeleka kwa kitanda or another man is waylaying on her. how else would CFC keep the sore wife home than to lead her to bed again than wait and loose her. Interest rates on all loans , past and present will come down. Banks are just buying time to squeeze a few extra coins from wanjiku before the guillotine comes down. Variable interest rates are just plain English. They vary when things change.The legal environment has changed, too bad for the banks but they must comply. 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: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
Even Equity had almost half of their new loan portfolio this year in govt securities.
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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watesh wrote:Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
Even Equity had almost half of their new loan portfolio this year in govt securities. a cat in the purse. however, more than 50% is interest income. that's significant exposure. could you roll out the figures including coop, CFC, dtb n I&m ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 4/22/2009 Posts: 2,863
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Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
The effect of the new law on the highlighted wont be interesting. IF YOU EXPECT ME TO POST ANYTHING POSITIVE ABOUT ASENO, YOU MAY AS WELL SIT ON A PIN
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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mwenza wrote:Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
The effect of the new law on the highlighted wont be interesting. Citi pays almost NIL interest...wonder if their customers will allow that anymore... Business opportunities are like buses,there's always another one coming
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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watesh wrote:Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
Even Equity had almost half of their new loan portfolio this year in govt securities. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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KulaRaha wrote:mwenza wrote:Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
The effect of the new law on the highlighted wont be interesting. Citi pays almost NIL interest...wonder if their customers will allow that anymore... Citibank is an exlcusive corporate bank, they pay nil interest because their accounts are all current accounts. All their loans are syndicated maga deals and they mostly earn their income from trade banking. They could care less about interest rates "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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So now the stories are starting to change..ehhh? I thought last week if the bill was signed the world as we know it would die prematurely. The only guys complaining are the shareholders... Otherwise, for the rest of us, dunia ni ile ile. And we still won't buy shares who's revenues we know will take a hit over the next 6 months... Someone said that banks won't allow refinancing, today CFC is telling you to take that annoying high rate to their bank and they'll sort you out. mmhhhh...And you wonder why Kenyans just hate bankers. Thieves are not good people. Tumeelewana?
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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Obi 1 Kanobi wrote:KulaRaha wrote:mwenza wrote:Ericsson wrote:@newfarer
Billions in profits will still be made.
I was looking at citibank kenya half year results.
Interest on government securities is more than twice interest on loans and advances.
Customer deposits is sh.62bn,
loans and advances to customers sh.31bn
investment in government securities sh.42bn
Profit before tax is at ksh.3bn
Number of branches in kenya is 2; one in Nairobi and the other in mombasa.
Banks will still rake in billions so long as GOK is borrowing aimlessly
The effect of the new law on the highlighted wont be interesting. Citi pays almost NIL interest...wonder if their customers will allow that anymore... Citibank is an exlcusive corporate bank, they pay nil interest because their accounts are all current accounts. All their loans are syndicated maga deals and they mostly earn their income from trade banking. They could care less about interest rates That is total corporate world!!! Even personal accounts in there are also just absorbed because corporate background of the individual. Wananyonya the like's of Obiero's darling hedging moves !!!! 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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