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Law Capping interest rates
Rank: Elder Joined: 7/22/2009 Posts: 7,455
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tom_boy wrote:I have always wondered, why lend to someone who is at high risk of default and then charge them a high interest rate and argue its because they are high risk. Defeats logic.
Interest rate controll will bring about economic growth. Many are the businesses that qualify for good loans but they do not borrow because the interest rates do not make economic sense. I believe the amount of business that banks forego by charging high rates is much much more than the the money lost in bad loans. Many are the individuals who are a good credit risk but will not dare touch a mortgage due to the high rates. If rates came down, such arguements like mortgage vs build would disappear. Mortgage accounts would suddenly increase, construction would pick up, SMEs will expand and soak in any jobs lost in banks right sizing and bankers will be forced to stop their very lazy approach to lending where they try to fit all borrowers into a mould.
Infact, the growth of mobile lending has adversly affected our economy. Banks would rathet lend to mama mboga type businesses via mobile and spread 1b sh across 2 million accounts at 5% a month than lend the same 1b to 100 SMEs, so they maintain the SME interest at very high levels to discourage borrowing. The SMEs are the engine to grow our economy while mama mboga will hardly ever break the ceiling to become an SME. This is economic sabotage!
This bill is good for Kenya. I doubt it will see the light of day though, mainly because of vested interests. Hii pesa ni ya mama ya nani?? (On a light note. Don't blow a fuse!) Tafuta pesa elsewhere!!! Who told you it is the responsibility of anyone to fund anyone's business ideas and expansion plans?? This is capitalism! it sucks to the lazy and clueless!!! 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: 13,516 Location: nairobi
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MaichBlack wrote:tom_boy wrote:I have always wondered, why lend to someone who is at high risk of default and then charge them a high interest rate and argue its because they are high risk. Defeats logic.
Interest rate controll will bring about economic growth. Many are the businesses that qualify for good loans but they do not borrow because the interest rates do not make economic sense. I believe the amount of business that banks forego by charging high rates is much much more than the the money lost in bad loans. Many are the individuals who are a good credit risk but will not dare touch a mortgage due to the high rates. If rates came down, such arguements like mortgage vs build would disappear. Mortgage accounts would suddenly increase, construction would pick up, SMEs will expand and soak in any jobs lost in banks right sizing and bankers will be forced to stop their very lazy approach to lending where they try to fit all borrowers into a mould.
Infact, the growth of mobile lending has adversly affected our economy. Banks would rathet lend to mama mboga type businesses via mobile and spread 1b sh across 2 million accounts at 5% a month than lend the same 1b to 100 SMEs, so they maintain the SME interest at very high levels to discourage borrowing. The SMEs are the engine to grow our economy while mama mboga will hardly ever break the ceiling to become an SME. This is economic sabotage!
This bill is good for Kenya. I doubt it will see the light of day though, mainly because of vested interests. Hii pesa ni ya mama ya nani?? (On a light note. Don't blow a fuse!) Tafuta pesa elsewhere!!! Who told you it is the responsibility of anyone to fund anyone's business ideas and expansion plans?? This is capitalism! it sucks to the lazy and clueless!!! @tommboya raises very valid points..
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: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MaichBlack wrote:Othelo wrote:MaichBlack wrote:sparkly wrote:MaichBlack wrote:Obi 1 Kanobi wrote:MaichBlack wrote:newfarer wrote:Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law As @mlennyma is saying, Kenyans are a bloody lazy lot!!! Why don't you think of ways you can profitably deploy your money! Were you forced to put it in the bank??? You want to deposit your money in the bank let someone else do all the work and take all the risks and give you a risk free 7% as you sit on your lazy a$$?? Even the bank will not be able to make that much despite all the work and risks! Issue loans @ 14.5% and give you 7%?? Difference? 7.5%! Now subtract all the costs from rent to salaries to marketing to validation of security to following up defaulters etc. etc. What remains?? And to make matters worse, with inflation in Kenya being at 5.xy, it means banks will be doing absolute ZERO work - if not negative!!! Finance and Economics should be made compulsory up to form 2 at least! Not that the issue at hand needs any advanced knowledge but the arguments show how badly we are doing in financial literacy. And this is Wazua. Wait until you go to the streets and villages and you here the reasoning. Reminds me when Kibera residents were told to pay "what the can afford" as rent. And as if that was not bad enough, one fellow appeared on TV saying "Tuliambiwa tulipe ile tunaweza afford. Ambapo ni bure!!!" Eish Bro, you are really freaking out  Economics and free markets were not invented in Kenya. You need to expand your horizon and see how other countries practice the same. Fact is all this free markets economics is not working in Kenya and a solution is needed that does not include maintaining the status quo. I kid you not @Obi. Even when T Bills were at double digits, most Kenyans were too lazy to open an account and buy and left the money lying in a Bank account somewhere earning 2% then complain to whoever was willing to listen. Let people think and put in some work - physical or mental - if they want to earn a coin. Look at the bigger picture boss. The bigger picture is that GOK has the absolute prerogative to make laws regulating anything and everything within the constitution. If a bank doesn't like it, it can go do business elsewhere. Woi!!! GFF!!! Welcome Communism So after banks who will be regulate next, supermarkets. This thing will backfire big time. Let us wait and see.  Now that Kenyans are suffering, I guess we will have to regulate food prices, rent, transport, school fees, clothes, doctor fees, medicine, dowry and I'm sure @Swenani and @Impunity will want landing fees controlled. Actually @Impunity has already complained about the cost of landing gear equipment on this thread. Nilikuwa nimesahau beds, blankets, diapers, day care, house girl salaries, Dstv, Sportpesa etc. We have to make sure Kenyans don't suffer!!! My friend you suffer from narrow vision. Virtually everything is regulated by the law, even the number of women you can marry. Life is short. Live passionately.
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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tom_boy wrote:I have always wondered, why lend to someone who is at high risk of default and then charge them a high interest rate and argue its because they are high risk. Defeats logic.
Interest rate controll will bring about economic growth. Many are the businesses that qualify for good loans but they do not borrow because the interest rates do not make economic sense. I believe the amount of business that banks forego by charging high rates is much much more than the the money lost in bad loans. Many are the individuals who are a good credit risk but will not dare touch a mortgage due to the high rates. If rates came down, such arguements like mortgage vs build would disappear. Mortgage accounts would suddenly increase, construction would pick up, SMEs will expand and soak in any jobs lost in banks right sizing and bankers will be forced to stop their very lazy approach to lending where they try to fit all borrowers into a mould.
Infact, the growth of mobile lending has adversly affected our economy. Banks would rathet lend to mama mboga type businesses via mobile and spread 1b sh across 2 million accounts at 5% a month than lend the same 1b to 100 SMEs, so they maintain the SME interest at very high levels to discourage borrowing. The SMEs are the engine to grow our economy while mama mboga will hardly ever break the ceiling to become an SME. This is economic sabotage!
This bill is good for Kenya. I doubt it will see the light of day though, mainly because of vested interests. The mobile product with interest rates of 5% is faaaaaaaaaaaaar more profitable than the brick and mortar business. If the money is brought back within a month, in 12 months you get interest equivalent to over 60% of your capital. Plus the pinch is spread so widely nobody ever complain they are too high to be able to pay since the amount borrowed is too little. As a shareholder, I love it
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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sparkly wrote:MaichBlack wrote:Othelo wrote:MaichBlack wrote:sparkly wrote:MaichBlack wrote:Obi 1 Kanobi wrote:MaichBlack wrote:newfarer wrote:Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law As @mlennyma is saying, Kenyans are a bloody lazy lot!!! Why don't you think of ways you can profitably deploy your money! Were you forced to put it in the bank??? You want to deposit your money in the bank let someone else do all the work and take all the risks and give you a risk free 7% as you sit on your lazy a$$?? Even the bank will not be able to make that much despite all the work and risks! Issue loans @ 14.5% and give you 7%?? Difference? 7.5%! Now subtract all the costs from rent to salaries to marketing to validation of security to following up defaulters etc. etc. What remains?? And to make matters worse, with inflation in Kenya being at 5.xy, it means banks will be doing absolute ZERO work - if not negative!!! Finance and Economics should be made compulsory up to form 2 at least! Not that the issue at hand needs any advanced knowledge but the arguments show how badly we are doing in financial literacy. And this is Wazua. Wait until you go to the streets and villages and you here the reasoning. Reminds me when Kibera residents were told to pay "what the can afford" as rent. And as if that was not bad enough, one fellow appeared on TV saying "Tuliambiwa tulipe ile tunaweza afford. Ambapo ni bure!!!" Eish Bro, you are really freaking out Economics and free markets were not invented in Kenya. You need to expand your horizon and see how other countries practice the same. Fact is all this free markets economics is not working in Kenya and a solution is needed that does not include maintaining the status quo. I kid you not @Obi. Even when T Bills were at double digits, most Kenyans were too lazy to open an account and buy and left the money lying in a Bank account somewhere earning 2% then complain to whoever was willing to listen. Let people think and put in some work - physical or mental - if they want to earn a coin. Look at the bigger picture boss. The bigger picture is that GOK has the absolute prerogative to make laws regulating anything and everything within the constitution. If a bank doesn't like it, it can go do business elsewhere. Woi!!! GFF!!! Welcome Communism So after banks who will be regulate next, supermarkets. This thing will backfire big time. Let us wait and see. Now that Kenyans are suffering, I guess we will have to regulate food prices, rent, transport, school fees, clothes, doctor fees, medicine, dowry and I'm sure @Swenani and @Impunity will want landing fees controlled. Actually @Impunity has already complained about the cost of landing gear equipment on this thread. Nilikuwa nimesahau beds, blankets, diapers, day care, house girl salaries, Dstv, Sportpesa etc. We have to make sure Kenyans don't suffer!!! My friend you suffer from narrow vision. Virtually everything is regulated by the law, even the number of women you can marry. I agree. I suffer from narrow vision. Everything is regulated by law, even the bank rates we are saying should be regulated. But come to think of it, what then have we been discussing??? Everything is already regulated!!! 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: Member Joined: 2/20/2007 Posts: 767
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MaichBlack wrote:tom_boy wrote:I have always wondered, why lend to someone who is at high risk of default and then charge them a high interest rate and argue its because they are high risk. Defeats logic.
Interest rate controll will bring about economic growth. Many are the businesses that qualify for good loans but they do not borrow because the interest rates do not make economic sense. I believe the amount of business that banks forego by charging high rates is much much more than the the money lost in bad loans. Many are the individuals who are a good credit risk but will not dare touch a mortgage due to the high rates. If rates came down, such arguements like mortgage vs build would disappear. Mortgage accounts would suddenly increase, construction would pick up, SMEs will expand and soak in any jobs lost in banks right sizing and bankers will be forced to stop their very lazy approach to lending where they try to fit all borrowers into a mould.
Infact, the growth of mobile lending has adversly affected our economy. Banks would rathet lend to mama mboga type businesses via mobile and spread 1b sh across 2 million accounts at 5% a month than lend the same 1b to 100 SMEs, so they maintain the SME interest at very high levels to discourage borrowing. The SMEs are the engine to grow our economy while mama mboga will hardly ever break the ceiling to become an SME. This is economic sabotage!
This bill is good for Kenya. I doubt it will see the light of day though, mainly because of vested interests. Hii pesa ni ya mama ya nani?? (On a light note. Don't blow a fuse!) Tafuta pesa elsewhere!!! Who told you it is the responsibility of anyone to fund anyone's business ideas and expansion plans?? This is capitalism! it sucks to the lazy and clueless!!! Capitalism it is, but Government should not be sucked into it at the expense of the wider population. Goverment role is to improve access and availability of factors of production to as many people as possible. Regulating interest rates will help with this. Thereafter, you can still fight it out as an individual. 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: Member Joined: 2/20/2007 Posts: 767
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watesh wrote:tom_boy wrote:I have always wondered, why lend to someone who is at high risk of default and then charge them a high interest rate and argue its because they are high risk. Defeats logic.
Interest rate controll will bring about economic growth. Many are the businesses that qualify for good loans but they do not borrow because the interest rates do not make economic sense. I believe the amount of business that banks forego by charging high rates is much much more than the the money lost in bad loans. Many are the individuals who are a good credit risk but will not dare touch a mortgage due to the high rates. If rates came down, such arguements like mortgage vs build would disappear. Mortgage accounts would suddenly increase, construction would pick up, SMEs will expand and soak in any jobs lost in banks right sizing and bankers will be forced to stop their very lazy approach to lending where they try to fit all borrowers into a mould.
Infact, the growth of mobile lending has adversly affected our economy. Banks would rathet lend to mama mboga type businesses via mobile and spread 1b sh across 2 million accounts at 5% a month than lend the same 1b to 100 SMEs, so they maintain the SME interest at very high levels to discourage borrowing. The SMEs are the engine to grow our economy while mama mboga will hardly ever break the ceiling to become an SME. This is economic sabotage!
This bill is good for Kenya. I doubt it will see the light of day though, mainly because of vested interests. The mobile product with interest rates of 5% is faaaaaaaaaaaaar more profitable than the brick and mortar business. If the money is brought back within a month, in 12 months you get interest equivalent to over 60% of your capital. Plus the pinch is spread so widely nobody ever complain they are too high to be able to pay since the amount borrowed is too little. As a shareholder, I love it ......and you miss the point completely. Because your bank is sooo preoccupied lending to mama mboga 500 at 5 %, the SMEs trying to grow and offer goods for export, better quality schools, run a proper farm operation etc are not able to afford credit. End result is the bank makes profit through usury and preying on the uneducated, at the expense of mid sized companies that can really propell our growth. Of what good is it if you make all the money from your bank and have no credible school to take your child to, tafakari hayo! 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: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MaichBlack wrote:sparkly wrote:MaichBlack wrote:Othelo wrote:MaichBlack wrote:sparkly wrote:MaichBlack wrote:Obi 1 Kanobi wrote:MaichBlack wrote:newfarer wrote:Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law As @mlennyma is saying, Kenyans are a bloody lazy lot!!! Why don't you think of ways you can profitably deploy your money! Were you forced to put it in the bank??? You want to deposit your money in the bank let someone else do all the work and take all the risks and give you a risk free 7% as you sit on your lazy a$$?? Even the bank will not be able to make that much despite all the work and risks! Issue loans @ 14.5% and give you 7%?? Difference? 7.5%! Now subtract all the costs from rent to salaries to marketing to validation of security to following up defaulters etc. etc. What remains?? And to make matters worse, with inflation in Kenya being at 5.xy, it means banks will be doing absolute ZERO work - if not negative!!! Finance and Economics should be made compulsory up to form 2 at least! Not that the issue at hand needs any advanced knowledge but the arguments show how badly we are doing in financial literacy. And this is Wazua. Wait until you go to the streets and villages and you here the reasoning. Reminds me when Kibera residents were told to pay "what the can afford" as rent. And as if that was not bad enough, one fellow appeared on TV saying "Tuliambiwa tulipe ile tunaweza afford. Ambapo ni bure!!!" Eish Bro, you are really freaking out Economics and free markets were not invented in Kenya. You need to expand your horizon and see how other countries practice the same. Fact is all this free markets economics is not working in Kenya and a solution is needed that does not include maintaining the status quo. I kid you not @Obi. Even when T Bills were at double digits, most Kenyans were too lazy to open an account and buy and left the money lying in a Bank account somewhere earning 2% then complain to whoever was willing to listen. Let people think and put in some work - physical or mental - if they want to earn a coin. Look at the bigger picture boss. The bigger picture is that GOK has the absolute prerogative to make laws regulating anything and everything within the constitution. If a bank doesn't like it, it can go do business elsewhere. Woi!!! GFF!!! Welcome Communism So after banks who will be regulate next, supermarkets. This thing will backfire big time. Let us wait and see. Now that Kenyans are suffering, I guess we will have to regulate food prices, rent, transport, school fees, clothes, doctor fees, medicine, dowry and I'm sure @Swenani and @Impunity will want landing fees controlled. Actually @Impunity has already complained about the cost of landing gear equipment on this thread. Nilikuwa nimesahau beds, blankets, diapers, day care, house girl salaries, Dstv, Sportpesa etc. We have to make sure Kenyans don't suffer!!! My friend you suffer from narrow vision. Virtually everything is regulated by the law, even the number of women you can marry. I agree. I suffer from narrow vision. Everything is regulated by law, even the bank rates we are saying should be regulated. But come to think of it, what then have we been discussing??? Everything is already regulated!!! Anti usury laws are common in many jurisdictions and have been so throughout different periods of history. GOK has the power to make anti usury laws. Parliament has passed an anti usury law, awaiting presidential assent. A prudent investor in the financial sector must recognise and evaluate the likelihood and impact of the interest capping law. Our arguments notwithstanding Life is short. Live passionately.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! 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: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided
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: 7,455
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obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! 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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Even then I would rather have Sacco loan than the sharky vulturerous bank loan where the bank can change interest rates at will and auction you any time. How many properties have been auctioned by Saccos, For banks you still pay interest in your security which is higher than the loan advanced. Opportunity cost high too. punda amecheka
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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MaichBlack wrote:obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! How did I miss that argument, Sacco loans pay very good interest on deposits, makes up for the interest they charge. I am in a Sacco that charges interest @1% per month reducing balance and and have been paying on average interest/dividend of minimum 10% over the last 5 years. You can borrow 3 times your deposits and they don't charge processing fee or any other handling fees like the Usurious Kenyan banks. They have close to zero bad debts coz all loans must have guarantors. Sacco loans are way more cheaper than bank loans, and even more accessible. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Obi 1 Kanobi wrote:MaichBlack wrote:obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! How did I miss that argument, Sacco loans pay very good interest on deposits, makes up for the interest they charge. I am in a Sacco that charges interest @1% per month reducing balance and and have been paying on average interest/dividend of minimum 10% over the last 5 years. You can borrow 3 times your deposits and they don't charge processing fee or any other handling fees like the Usurious Kenyan banks. They have close to zero bad debts coz all loans must have guarantors. Sacco loans are way more cheaper than bank loans, and even more accessible. http://www.wazua.co.ke/f...spx?g=posts&t=33423
possunt quia posse videntur
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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maka wrote:Obi 1 Kanobi wrote:MaichBlack wrote:obiero wrote:Angelica _ann wrote:DtheK wrote:Our Saccos operate on this model,lending at about 12% and paying around 7% for deposits.The better managed ones thrive and have grown year on year.CFC is already offering 7% on savings accounts with deposit above 5,000.00 and they are doing fine.
If M.Pigs want to bring down cost of credit they should try pushing the government to better use tools it has in its control I'm thinking expanding youth fund,SME and women fund and stopping their looting.
And what about implementing that mobile-based system treasury was going to borrow through?
Don't forget whose family owns M-shwari/C.B.A, do you seriously expect that person to cap interest rates?I would be pleasantly surprised. I thought it was proved here on wazua that Sacco loans are more expensive than bank loans. So they are also equally exploiting Kenyans!!! Yes. It was deliberated and decided @Angelica_ann, @Obiero - Some of these fellows cannot be helped. They can't even figure out that of the loan they get from the Sacco, a third is already their own money but they still pay interest for it! How did I miss that argument, Sacco loans pay very good interest on deposits, makes up for the interest they charge. I am in a Sacco that charges interest @1% per month reducing balance and and have been paying on average interest/dividend of minimum 10% over the last 5 years. You can borrow 3 times your deposits and they don't charge processing fee or any other handling fees like the Usurious Kenyan banks. They have close to zero bad debts coz all loans must have guarantors. Sacco loans are way more cheaper than bank loans, and even more accessible. http://www.wazua.co.ke/f...spx?g=posts&t=33423
@Obi there you are. Thanks @Maka 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: Elder Joined: 7/22/2009 Posts: 7,455
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newfarer wrote:Even then I would rather have Sacco loan than the sharky vulturerous bank loan where the bank can change interest rates at will and auction you any time. How many properties have been auctioned by Saccos, I like your reasoning. You are aware of your options, have considered each of them and have made your choice. That is the best approach. No need to demand things in a free market. Vote with your feet! 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: 7,455
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MaichBlack wrote:Othelo wrote:MaichBlack wrote:sparkly wrote:MaichBlack wrote:Obi 1 Kanobi wrote:MaichBlack wrote:newfarer wrote:Bankers here are scaremongering.I want to get that 7% on my deposit.the banks won't refuse to take my cash deposits by setting unreasonable rules, the ceo of the bank will be Put inside for going against the law As @mlennyma is saying, Kenyans are a bloody lazy lot!!! Why don't you think of ways you can profitably deploy your money! Were you forced to put it in the bank??? You want to deposit your money in the bank let someone else do all the work and take all the risks and give you a risk free 7% as you sit on your lazy a$$?? Even the bank will not be able to make that much despite all the work and risks! Issue loans @ 14.5% and give you 7%?? Difference? 7.5%! Now subtract all the costs from rent to salaries to marketing to validation of security to following up defaulters etc. etc. What remains?? And to make matters worse, with inflation in Kenya being at 5.xy, it means banks will be doing absolute ZERO work - if not negative!!! Finance and Economics should be made compulsory up to form 2 at least! Not that the issue at hand needs any advanced knowledge but the arguments show how badly we are doing in financial literacy. And this is Wazua. Wait until you go to the streets and villages and you here the reasoning. Reminds me when Kibera residents were told to pay "what the can afford" as rent. And as if that was not bad enough, one fellow appeared on TV saying "Tuliambiwa tulipe ile tunaweza afford. Ambapo ni bure!!!" Eish Bro, you are really freaking out Economics and free markets were not invented in Kenya. You need to expand your horizon and see how other countries practice the same. Fact is all this free markets economics is not working in Kenya and a solution is needed that does not include maintaining the status quo. I kid you not @Obi. Even when T Bills were at double digits, most Kenyans were too lazy to open an account and buy and left the money lying in a Bank account somewhere earning 2% then complain to whoever was willing to listen. Let people think and put in some work - physical or mental - if they want to earn a coin. Look at the bigger picture boss. The bigger picture is that GOK has the absolute prerogative to make laws regulating anything and everything within the constitution. If a bank doesn't like it, it can go do business elsewhere. Woi!!! GFF!!! Welcome Communism So after banks who will be regulate next, supermarkets. This thing will backfire big time. Let us wait and see. Now that Kenyans are suffering, I guess we will have to regulate food prices, rent, transport, school fees, clothes, doctor fees, medicine, dowry and I'm sure @Swenani and @Impunity will want landing fees controlled. Actually @Impunity has already complained about the cost of landing gear equipment on this thread. Nilikuwa nimesahau beds, blankets, diapers, day care, house girl salaries, Dstv, Sportpesa etc. We have to make sure Kenyans don't suffer!!! Of course I was being sarcastic when I posted this but this just in... Doctor fees to be controlled...The charges are apparently higher than the ones that are being charged currently but the fact is that now they are being controlled. 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: 7,455
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Quote:When doctors are summoned to court to give expert evidence in a case, they will be paid Sh50,000 by the law firms. Sounds too high to me!!! My questions: 1) Does it apply to doctors in government hospitals??? 2) Who pays in case of a criminal case? Like in the numerous cases where minors are raped in informal settlements, who is expected to pick the bill?? 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: 7/21/2010 Posts: 6,183 Location: nairobi
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MaichBlack wrote:Quote:When doctors are summoned to court to give expert evidence in a case, they will be paid Sh50,000 by the law firms. Sounds too high to me!!! My questions: 1) Does it apply to doctors in government hospitals??? 2) Who pays in case of a criminal case? Like in the numerous cases where minors are raped in informal settlements, who is expected to pick the bill?? somebody is about to say we share equally all income generated by different Kenyans monthly "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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mlennyma wrote:MaichBlack wrote:Quote:When doctors are summoned to court to give expert evidence in a case, they will be paid Sh50,000 by the law firms. Sounds too high to me!!! My questions: 1) Does it apply to doctors in government hospitals??? 2) Who pays in case of a criminal case? Like in the numerous cases where minors are raped in informal settlements, who is expected to pick the bill?? somebody is about to say we share equally all income generated by different Kenyans monthly Hapo ndipo tumeelekea!!! Someone will say it is "immoral" for @mlennyma to have a fridge full of foodstuff and kids having eggs, sausages, bacon etc. for breakfast while other Kenyans have nothing to eat. And why do you need two cars and there is a certain neighbourhood drunk who can use one as a taxi - the days he is sober! 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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