450b worth of bad loans to individuals and private sector..

[RV Pundit]

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https://www.businessdailyafrica.com/bd/economy/auctions-return-loan-defaults-13-year-high-3344212?view=htmlamp

[gout]

Covid billionaires will snap the assets for a song.  Seems family homes among upperdeck are on the hammer too.

With covid admission bills piling up and taking the patriarchs it is a pandemonium shift.

Many will never recover the virus and its political mismanagement/outright theft.

[GeeMail]

https://www.businessdailyafrica.com/bd/economy/auctions-return-loan-defaults-13-year-high-3344212?view=htmlamp

Serious stuff. How do they handle property they have seized but can't sell? I also hear they can do very little about the personal loans where security was salary. Maybe blacklist but very little else.

[RV Pundit]

Unsecular loan; nothing; they can only blacklist; 14m kenyans already on it; for even Mama Mboga loan;  Some banks will start to collapse.

[RV Pundit]

COVId Billionaire owns the sinking bank; they have to steal more from broke treasury; this one has domino effect; it like Moi era; everyone will struggle; except those with hard cold currency and those with gov faults;

Covid billionaires will snap the assets for a song.  Seems family homes among upperdeck are on the hammer too.

With covid admission bills piling up and taking the patriarchs it is a pandemonium shift.

Many will never recover the virus and its political mismanagement/outright theft.

[GeeMail]

Looks bleak!

[KenyanPlato]

I have not read the article.,the banks fully reserve for these loans. Banks are still making profits from lending money to the govt. So the banks wont lose a,dime. It will just become expensive to borrow.

[patel]

Maybe kenyatta bank might survive but better believe banks are going down..whatever is reported multiply by 2 or 3. Ni kubaya

I have not read the article.,the banks fully reserve for these loans. Banks are still making profits from lending money to the govt. So the banks wont lose a,dime. It will just become expensive to borrow.

[KenyanPlato]

Maybe kenyatta bank might survive but better believe banks are going down..whatever is reported multiply by 2 or 3. Ni kubaya

I have not read the article.,the banks fully reserve for these loans. Banks are still making profits from lending money to the govt. So the banks wont lose a,dime. It will just become expensive to borrow.

Banks wont go down. This just 14% of their portfolios. They will need bail out and consilodiation but that all I can see

[RV Pundit]

15% for small undercapitalized banks is a killer...and those are the defaults...the rest of loan book is not look pretty. The next two years business with clay feet will melt.

Banks wont go down. This just 14% of their portfolios. They will need bail out and consilodiation but that all I can see

[hk]

Almost every bank is adding provision funds to cover for Non performing loans. Some small banks are in breach of CBK liquidity mandates. Covid 19 was the last straw, private companies and individuals have been struggling for awhile. Asset bubbles driven by huge government spending and corruption will bust. The only reason why we haven't had fire sales of properties is cause  of land act 2012 which caps auctions to I think 80% of the property value. However the properties being auctioned aren't revalued to the prevailing market prices.  Meaning the act is artificially keeping the property value high. Yet construction is still booming and to make it worse being built expensively so when properties are completed there are no takers. The market can't afford the prices.
The only way to survive and thrive in this economy is to innovate and increase productivity. i.e make the products or services at low prices that the market can afford.

[RV Pundit]

I think for now cash is king - and then wait over for distressed sales; this is the year that will separate boys from men; business that were barely surviving will not have any more shocks absorbers to take in the hits of 2021. And the kenya we are going into 2022 election and it's attendant political risks;

For now those guys who are leveraged to their gills ; they will see their wealth evaporate; as they will be auctioned; and condemned.

I am glad personally I eschew lots of debts - and prefer to invest hard cash - without leveraging.

Almost every bank is adding provision funds to cover for Non performing loans. Some small banks are in breach of CBK liquidity mandates. Covid 19 was the last straw, private companies and individuals have been struggling for awhile. Asset bubbles driven by huge government spending and corruption will bust. The only reason why we haven't had fire sales of properties is cause  of land act 2012 which caps auctions to I think 80% of the property value. However the properties being auctioned aren't revalued to the prevailing market prices.  Meaning the act is artificially keeping the property value high. Yet construction is still booming and to make it worse being built expensively so when properties are completed there are no takers. The market can't afford the prices.
The only way to survive and thrive in this economy is to innovate and increase productivity. i.e make the products or services at low prices that the market can afford.

[GeeMail]

Pundit most people leverage because things are hard so hard cash is a risk as well as inflation drives it to nothing. Election is looking good as "holy alliance" shapes up. Should be countered by "honest alliance" also of people who are anything but. Totally agree cash is king but only for spending, not for mattress when the economy is so fluid.

[RV Pundit]

Those invested using debt will cry in the choo for a longtime. The rest of us who invest conservatively are going to see minor setbacks. At least we won't start from negative - where banks owes you millions and your business idea or property is already down or seized. My advice - invest long term -

Pundit most people leverage because things are hard so hard cash is a risk as well as inflation drives it to nothing. Election is looking good as "holy alliance" shapes up. Should be countered by "honest alliance" also of people who are anything but. Totally agree cash is king but only for spending, not for mattress when the economy is so fluid.