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Ile msemo ya … akili ni nywele na wengine hawana
Understand this.Which family is buying up banks all over???
Hapa I disagree na man kush ,what we need to do is to cap what government can borrow locally ,wawekewe cap ya say 15% maximum of what kra collects as the amount government can raise through bonds na public debt isipite 30% ya what kra collects ,hizi project za gathecha wazifanye through PPP program na funds ziwe mobilised through the NSE as a public purchase program Kama stocks ,hii itasaidia Sana ma investors na kutoa cartels za ma tender na corruption scandals
My perspective. Accessing credit for business has become very difficult since the interest rate cap, compared to the kibaki years. For me I would rather access enough money for my projects at a slightly higher rate, than have no access at all.
Another interesting calculation, the difference in installment paid per month for 1m borrowed at 14% and at 20% for one year is less than 5k. Many businesses would comfortably afford this if access was not an issue.
Consider too that while the rate caps were targeted at the billions the banks were earning, that approach failed as the banks are still reporting those crazy profits, albeit not from lending to the commoners but to the government.
Weeeee nanni ,banks are intentionally refusing to loan commoner’s to "force"government to scrap hii interest rate capping,how can you have “bad” / non performing loans yet uko na security , guarantors ,na insurance to cover for non performing loans ,huyu Padre needs to be sacked for letting Kenyans be victims of manipulation by bank bosses
Giving banks a free will on interest rates will bring back the cartels that are banks. They all collude and charge 23%.Banks in Kenya need to be regulated on matters to do with lending. Shame that before Gathecha exits the presidency, the rate cap will be gone to ensure family business prospers!
… Stated another way, the government brought this situationship, and who benefits? The same government at the commoners expense. Somebody ought to stop the government from domestic borrowing. Are the banks affected? Hardly as they are still reporting the same profits they used to. Remove the caps and open the market.
Vichwa za watu wengine zimebeba meno pekee
Wacha wakopeshe serikali at 12% Kuliko commoner’s at 24% ,what that rotich guy should do is focus more on the sukuk bonds na ppp programs ,banks wakikosa hizo government bonds wataturudia sisi raiya
It’s actually a good move. He’s only asking for it to be reviewed by 2% to accommodate risks of lending to SMEs. Ni chenye @Ole masai anasema right now it’s only the small borrowers suffering. Banks still lend to government and big companies which they consider relatively low risk. They still make their profits.
Lybia had 0%interest on loans with Gadaffi in power
Libya is primarily an Islamic state. Islam forbids charging of ‘riba’ which is basically interest. That’s why.
The banks share in the profits of the borrower in a prearranged rate. That’s how Islamic banking works, I think even locally.
This is an assumption. Islamic banks charge interest on loans but at a very lower rate of about 4-6% and not the exploitive way that Kenya does. Hio ya Kenya ni tamaa if you ask me.
Islamic banks don’t charge interest…they earn a profit…say you want a car…you will identify it,the bank will purchase the car and sell it to you at a pre deteremined deferred profit rate…however locally the profit rate matches that of the prevailing CBK rate…Islamic banks world over do the same…
Without sugarcoating things, for all intents and purposes, that is technically interest.
Asande Omwami, you took the words right out of my mouth. Hope amesoma, anything above the loan is interest my fren
Umeffi hiyo what ISlamic banks do. They earn interest,only that they dont call it interest. However, if it walks like a duck and quacks like a duck…it is one.
Moses Kuria is working very hard to make Uhuru Kenyatta forget what he said on New Years eve. He is supporting mambo ya Prime Minister and now re(moving) the interest rate cap.
Kiss Moses Kuria kiss that behind, you will be forgiven
It’s an equity participation model essentially. You and the bank fix a profit sharing ratio. So when your business makes a loss or is unable to pay it’s interest for the said period, the bank also loses. That’s not equivalent to interest coz interest is paid whether you make profits or losses.