Banking sector status

[gout]

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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/

[Omollo]

The debt! The National debt!! We need to focus on this. Why is Uhuru borrowing money when he has not accounted for the Eurobond

[Empedocles]

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. 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. 

[Georgesoros]

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. 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. 

[MOON Ki]

The only losers are the common man.

So?   It's not as though the common man really cares.

[Omollo]

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 .

The only losers are the common man.

So?   It's not as though the common man really cares.

[Georgesoros]

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.

[Omollo]

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.

[MOON Ki]

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?   

[Georgesoros]

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?   

[MOON Ki]

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.

[hk]

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/

[hk]

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. 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. 

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.

[gout]

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.

[Gumzo]

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   

[Georgesoros]

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   

[Globalcitizen12]

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. 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. 

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?

[hk]

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.

[Globalcitizen12]

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

[RV Pundit]

CBA are making money from M-shwari.
http://kenyanwallstreet.com/cba-group-reports-87-growth-earnings-driven-fees-m-shwari