On the back of the crazy interest hike by the banks, and depreciation of the kes, life is becoming more expensive for the net borrowers like i (and a sizable group of wazuans). The outcome of these has been; 1. Upward adjustment of prices of goods by about 35 %. 2. Increase of loan repayment instalments by about the same margin. 3. Stagnation of share prices in nse reducing value of pensions and networth for investors. 4. Crazy bills. 5. Mortgages that no longer make economic sense etc. At the same time salaries remain constant and for those in business, margins are squezed: because of the reducf disposable income and rise in costs more so financing costs. The question is, how do we survive?, especially beyond hand to mouth. Critical options; 1. Let us share information on bank loans and on the option of doing a balance tranfer to those banks that are cheaper. Recently i saw both kcb and cfc adjusted their base lending rates to *24% *, could there be a sub 20 rate? 2. The instalments for mortgages will be up by at least 50%, at the same time the rental yields have stagnated implying renting at the moments is cheaper. Can we sell and invest the net gain in equity.? 3. Can we start subsistence farming to lower the cost of food in our homesteads? 4. The price for default for unsecured loan is very high, isn't it? (It may not be music to net lenders). Have your say and advise on solutions, and let us keep track on the rates and emerging trends.

I wish they could be right. The shorter the stint the better. Unfortunately things will never be the same again. In kenya, when anything goes up, it is a miracle for it to down to previous levels......

No reprieve as CBR was adjusted upwards to 18%. I expect the base lending rates to be adjusted to average 26 % and effective lending rates to average 29%, ceteris paribus.