Nipate
Forum => Kenya Discussion => Topic started by: gout on March 22, 2017, 03:43:37 PM
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The resilient assault by MPesa, interest rate capping, prolonged drought & books cooking.
Even miracle worker Mwangi seems to be hitting a plateau. He needs an exit strategy and some safe hands. Hope his exit won't be like the recent ones by Naikuni & Ciano.
http://www.nation.co.ke/oped/Opinion/depressing-bank-results-state-kenya-economy/440808-3858934-y7tlm0z/index.html
Seems CBK is very cautious with sector statistics these days. Will be interesting how the figures from CBA look like.
https://www.centralbank.go.ke/reports/bank-supervision-and-banking-sector-reports/
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The debt! The National debt!! We need to focus on this. Why is Uhuru borrowing money when he has not accounted for the Eurobond
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The debt! The National debt!! We need to focus on this. Why is Uhuru borrowing money when he has not accounted for the Eurobond
Largely due to the 2010 constitution, which introduced hundreds of new mouths to feed (legally and illegally), as exemplified here: Politicians rush to buy choppers, 59 imported in the last two years (http://www.the-star.co.ke/news/2016/03/18/politicians-rush-to-buy-choppers-kcaa-confirms-59-choppers-have-been_c1315496). No industrial base to speak of and the bucks have to come from somewhere.
Ergo, debt.
We're now even scrounging 3k from wanainchi through Akiba Bonds (http://www.businessdailyafrica.com/markets/Treasury-starts-sale-of-mobile-based-bond-M-Akiba/539552-3858932-l79r82/). :D
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The only losers are the common man. Choppers everywhere from borrowed money. Uhuru borrowed 3 trillion and used it to finance the the expansion of govt. Thats the only thing growing. Nothing else.
The debt! The National debt!! We need to focus on this. Why is Uhuru borrowing money when he has not accounted for the Eurobond
Largely due to the 2010 constitution, which introduced hundreds of new mouths to feed (legally and illegally), as exemplified here: Politicians rush to buy choppers, 59 imported in the last two years (http://www.the-star.co.ke/news/2016/03/18/politicians-rush-to-buy-choppers-kcaa-confirms-59-choppers-have-been_c1315496). No industrial base to speak of and the bucks have to come from somewhere.
Ergo, debt.
We're now even scrounging 3k from wanainchi through Akiba Bonds (http://www.businessdailyafrica.com/markets/Treasury-starts-sale-of-mobile-based-bond-M-Akiba/539552-3858932-l79r82/). :D
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The only losers are the common man.
So? It's not as though the common man really cares.
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Parkerpen should read Chinua Achebe's A Man of the People. The situation is exactly the same before Chief Nanga rises to power. The common man supports the money printing Prime Minister and rough up the Finance Minister who opposes it :D.
The only losers are the common man.
So? It's not as though the common man really cares.
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The only problem is that the middle class is bearing the brunt of this chaos. With no income I am forced to send money to my relatives so that kids can at least get a high school education, while Uhuru spends tax payer money to his loyal entities. AM sure each one of us is facing the same one ay or the other. Raise your hands if you don't.
The only losers are the common man.
So? It's not as though the common man really cares.
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Someone recently wrote about the middle class. I will dig it up shortly
The only problem is that the middle class is bearing the brunt of this chaos. With no income I am forced to send money to my relatives so that kids can at least get a high school education, while Uhuru spends tax payer money to his loyal entities. AM sure each one of us is facing the same one ay or the other. Raise your hands if you don't.
The only losers are the common man.
So? It's not as though the common man really cares.
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The only problem is that the middle class is bearing the brunt of this chaos.
How/why is there a problem if the so-called middle class doesn't care?
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The middle class is busy trying to survive. Tuition is 100 of thousands, Shelter, food, transport, medical bills, electric, car repairs all this add up. They are also feeding their parents because the govt has no social security for them, but instead uses that money to pay pigs who in turn buy helicopters. Its debauchery!!!
Talk to your relatives and they'll tell you...
The only problem is that the middle class is bearing the brunt of this chaos.
How/why is there a problem if the so-called middle class doesn't care?
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The middle class is busy trying to survive.
A lot of people---far more than are in the "middle class"---are too. And in tougher circumstances.
Tuition is 100 of thousands, Shelter, food, transport, medical bills, electric, car repairs all this add up. They are also feeding their parents because the govt has no social security for them, but instead uses that money to pay pigs who in turn buy helicopters. Its debauchery!!!
All that might be true. And I'm sure that people find it irritating. But I've seen little evidence to suggest that they are truly unhappy with the situation, which is why I can't see where the "problem" lies.
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The resilient assault by MPesa, interest rate capping, prolonged drought & books cooking.
Even miracle worker Mwangi seems to be hitting a plateau. He needs an exit strategy and some safe hands. Hope his exit won't be like the recent ones by Naikuni & Ciano.
http://www.nation.co.ke/oped/Opinion/depressing-bank-results-state-kenya-economy/440808-3858934-y7tlm0z/index.html
Seems CBK is very cautious with sector statistics these days. Will be interesting how the figures from CBA look like.
https://www.centralbank.go.ke/reports/bank-supervision-and-banking-sector-reports/
The banks have to innovate quickly to adopt to the new norms. The banks need to ramp up dispersion of mobile loans and not at the capped spread rate but higher like M-shwari which is 7.5% one time fee. There's no way a bank will lend to risky customer at 14.5% while government bonds which are practically risk free at 13.6%. The banks that have loaded on treasuries and are exposed to productive sectors like horticulture are doing fine e.g stanchart http://www.businessdailyafrica.com/corporate/StanChart-in-biggest-profit--jump-despite-loan-rates-cap/539550-3860872-lejmp8/
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The debt! The National debt!! We need to focus on this. Why is Uhuru borrowing money when he has not accounted for the Eurobond
Largely due to the 2010 constitution, which introduced hundreds of new mouths to feed (legally and illegally), as exemplified here: Politicians rush to buy choppers, 59 imported in the last two years (http://www.the-star.co.ke/news/2016/03/18/politicians-rush-to-buy-choppers-kcaa-confirms-59-choppers-have-been_c1315496). No industrial base to speak of and the bucks have to come from somewhere.
Ergo, debt.
We're now even scrounging 3k from wanainchi through Akiba Bonds (http://www.businessdailyafrica.com/markets/Treasury-starts-sale-of-mobile-based-bond-M-Akiba/539552-3858932-l79r82/). :D
Where do the banks get money to buy treasuries if not from mwanaichi ? M-akiba just by passes the banks, investment funds and goes directly to wanainchi.
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I don't understand the mixed signals. While registered banks are crying of poor performance, foreign banks are dying to enter the market.
Waiting to see whether banks with roots in economies with negative interest rates, petrodollars can have an impact on the future direction of the sector.
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The only losers are the common man. Choppers everywhere from borrowed money. Uhuru borrowed 3 trillion and used it to finance the the expansion of govt. Thats the only thing growing. Nothing else.
During the funeral of late Nyeri GV Nderitu Gachagua, 8 shiny new choppers were packed on the grounds of a nearby primary school
The common man/woman over there were heard commenting saying the choppers display was irrefutable evidence of the great maendeleo Jubilee has brought
and they all vowed to re-elect Jubilee.
Respectfully
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The way I measure wealth is not the number of choppers rather how many infrastructure projects have been completed. Kilimani primary school is the same as it was in 1980s. So is Pangani, Buruburu, etc that is not progress. Rural areas is even worse. I have lived among Jews and the first thing they do is build institutions and then from there they build their own homes.
The only losers are the common man. Choppers everywhere from borrowed money. Uhuru borrowed 3 trillion and used it to finance the the expansion of govt. Thats the only thing growing. Nothing else.
During the funeral of late Nyeri GV Nderitu Gachagua, 8 shiny new choppers were packed on the grounds of a nearby primary school
The common man/woman over there were heard commenting saying the choppers display was irrefutable evidence of the great maendeleo Jubilee has brought
and they all vowed to re-elect Jubilee.
Respectfully
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The debt! The National debt!! We need to focus on this. Why is Uhuru borrowing money when he has not accounted for the Eurobond
Largely due to the 2010 constitution, which introduced hundreds of new mouths to feed (legally and illegally), as exemplified here: Politicians rush to buy choppers, 59 imported in the last two years (http://www.the-star.co.ke/news/2016/03/18/politicians-rush-to-buy-choppers-kcaa-confirms-59-choppers-have-been_c1315496). No industrial base to speak of and the bucks have to come from somewhere.
Ergo, debt.
We're now even scrounging 3k from wanainchi through Akiba Bonds (http://www.businessdailyafrica.com/markets/Treasury-starts-sale-of-mobile-based-bond-M-Akiba/539552-3858932-l79r82/). :D
Where do the banks get money to buy treasuries if not from mwanaichi ? M-akiba just by passes the banks, investment funds and goes directly to wanainchi.
How is M-kiba going to be use as private capital? the reason why banks are essestial is because they lend thus creating more wealth.. How is packing money in Bonds going to spur economic growth?
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Global,
M-akiba can be used to sell corporate bonds(in future) or SME bonds packaged together like the way mortgages are bundled together then sold. The platform can do that, thus provide much needed credit to businesses.
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Global,
M-akiba can be used to sell corporate bonds(in future) or SME bonds packaged together like the way mortgages are bundled together then sold. The platform can do that, thus provide much needed credit to businesses.
Would you buy a corporate bond? personally I wouldn't
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CBA are making money from M-shwari.
http://kenyanwallstreet.com/cba-group-reports-87-growth-earnings-driven-fees-m-shwari
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CBA are making money from M-shwari.
http://kenyanwallstreet.com/cba-group-reports-87-growth-earnings-driven-fees-m-shwari
This what I had suggest the banks to do about their mobile lending. Classify those as fee and commissions so that they can charge at higher rate.
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I fully support this...
Gambling addiction is real.
http://www.the-star.co.ke/news/2017/04/10/uhuru-defends-50-increase-on-betting-taxes-says-state-open-to-talks_c1541294
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I fully support this...
Gambling addiction is real.
http://www.the-star.co.ke/news/2017/04/10/uhuru-defends-50-increase-on-betting-taxes-says-state-open-to-talks_c1541294
I'd be honestly surprised if this 50% increase passes. The gambling firms have billions upon billions of shillings, all siphoned from poor starving Kenyans.
The thing is, the MP's know this, and they want a slice of the proceeds (remember Midiwo's bill? Just over a month ago, MP's were "encouraged" to reject it (https://www.standardmedia.co.ke/article/2001231281/mps-reject-bill-threatening-betting)).
I'm not keeping my fingers crossed.
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There is need to tax more likes of Mshwari, Sportpesa, Uber - no other way to fund social services.
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KCB should have done everything in its power to win M-akiba secondary market deal. The volume is going to explode soon and providing liquidity is going to be a money minting operation.They lost out on Mshwari equity bank also and now they are scrambling to catch up. http://www.businessdailyafrica.com/markets/news/CBA-beats-KCB-to-mobile-phone-bond-trading-deal/3815534-3886684-fpl8re/index.html
Commercial Bank of Africa (CBA) has snatched from Kenya’s biggest bank, KCB KCB 33.75 ? 2.27%, a multi-billion shilling deal to guarantee buyers of the mobile phone-based bond, M-Akiba, an exit route whenever they need it.
People familiar with the deal said KCB had been beaten to the contract in the heat of a price war that CBA appears to have won.
Geoffrey Odundo, the chief executive of the Nairobi Securities Exchange (NSE), confirmed the CBA deal.
“They (CBA) will be the buyer to every seller and a seller to every buyer,” he said.
CBA, which is owned by the Kenyatta family, will now act as the buyer of any mobile phone bonds that investors put in the market but cannot find a buyer.
KCB is said to have failed to agree with the Treasury on the cost of providing liquidity for the three-year paper.
KCB is said to have sought three per cent compensation on the value of any bond it purchases, which is similar to what the central bank gets when it buys a bond from an investor as buyer of last resort.
The Central Bank of Kenya buys bonds from investors that have either not matured or have failed to attract a buyer at the Nairobi bourse, but at a discount of three per cent of the prevailing price.
KCB had also attached a fee of 0.5 per cent for the guaranteeing offer, but CBA offered a lower rate of 0.3 per cent and did not demand additional compensation, the Treasury sources said.
KCB said it would not comment on the matter.
The Treasury raised Sh150 million with the three-year M-Akiba bond, becoming the first in the world to issue a government bond via the mobile phone. Investors who bought the bond started trading the paper yesterday on the NSE.
“Conversations with previous liquidity providers are still ongoing. We have not finalised. But we had a deadline we needed to fix this and process for today,” Wohoro Ndoho, the head of debt at the Treasury, said in response to questions on the matter, adding that the government is looking to a future in which there are multiple liquidity providers.
CBA was the first to start offering saving and lending products on mobile phones.
The bank in 2012, launched M-Shwari on the M-Pesa mobile cash platform, owned by telecoms operator Safaricom SCOM 19.25.
More than the equivalent of Sh154.5 billion has since been lent to customers on M-Shwari in Kenya and in neighbouring countries where CBA operates, according to the bank.
More recently, KCB is has also become a major player in collecting deposits and lending via the mobile phone.
The second tranche of M-Akiba, worth Sh4.85 billion, is set to open in June and Mr Ndoho said other mobile issues would follow.
“We do not envisage this as a one-off. This has to be a permanent part of our financial services market architecture that offers the average Kenyan an opportunity to participate in the bonds market,” Mr Ndoho said at a bell ringing ceremony for the bond.
Analysts said CBA is poised to make a fortune, but only subject to the volumes of transactions.
“Once we see scale (which I expect) then it will be profitable. For now it’s a nickels and dimes game but M-Pesa has proven that there is scale in this game,” said Rich management chief executive officer Aly-Khan Satchu.
Sterling Capital investment director John Kirimi noted the rates are small but would be very lucrative with the rise in transaction volumes.
CBA Group executive director Martin Mugambi said the lender won the deal after providing the best pricing.
Mr Odundo said about 108,000 Kenyans have registered on their mobile phones to invest in M-Akiba since last month, compared with just 20,000 existing retail investor accounts with the central bank for normal Treasury bonds, showing the potential for M-Akiba to help mobilise savings.
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yeah - if it does catches fire - and it will - with guaranteed liquidity - then it surely big coup by CBA - yet again.
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is it the customers who need the push to embrace the digital banking or the brick and mortal bankers?
http://www.businessdailyafrica.com/corporate/StanChart-cuts-opening-hours-in-digital-banking-push/539550-3887732-o6e5w2/
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KCB feeling the pinch and now this!!!!!!!!
Capping interest rates was bad law.
http://www.the-star.co.ke/news/2017/04/22/shelter-afrique-sinks-deeper-into-loss-on-increasing-bad-loans_c1547709