Cement consumption yet to pick up - maybe time to repeal the interest cap?

[RV Pundit]

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https://www.businessdailyafrica.com/news/Drop-in-cement-sales-points-to-real-estate-slowdown/539546-4656714-dswj1j/index.html

[RVtitem]

On the contrary, government should stop prostituting and being the biggest lender for commercial banks.

If gov reduced lending too much from local bank, the the said banks will start to lend to people.

Banks will wake up one day when their space to lend has been taken over by apps

[RV Pundit]

Yeap - but where would CBK/treasury borrow from - external - the forex risks are high.

On the contrary, government should stop prostituting and being the biggest lender for commercial banks.

If gov reduced lending too much from local bank, the the said banks will start to lend to people.

Banks will wake up one day when their space to lend has been taken over by apps

[vooke]

They should borrow at higher rates. I have always felt like the capping was designed to lower Jubilee borrowing costs

[RVtitem]

They should borrow at higher rates. I have always felt like the capping was designed to lower Jubilee borrowing costs

Precisely

[Globalcitizen12]

Uhuru is an economic moron. His weakness is his desire to pacify masses with populist bullshit like capping interests

[RV Pundit]

Banks been gorging kenyans for 30yrs - making super-normal profit - I think some form of capping is required - asking for 25% interest for any loan except maybe really short-term overdraft won't help any economy.

Uhuru is an economic moron. His weakness is his desire to pacify masses with populist bullshit like capping interests

[Globalcitizen12]

Banks are not gouging anyone..the market is free. You go Sacco, microfinance..the economy is doomed pundit..the inflation on construction materials and consumer goods is too high. The reason why even microfinance banks failed is that Kenyan borrowers are too risky. Very few Kenyans are able to manage credit and debt well. My dad served as an executive for banks for over 40 years. Most of Kenyans borrowers have very flawed business plans. 70 percent of borrowers endup in distress.. corruption is so rife in the banks that most loan officers would be fired with 5 years due to  making bad loans.

I have  seen idiots begging my old man to  refer them and he would refuse. Greed in Kenya is real and desperation makes it worse

[hk]

Its not just cement PMI is decreasing clearly showing the economy isn't growing. And this was before Rotich budget which clearly will have negative impact on the economy. There's no way a bank can lend to private sector at 14.% while government is borrowing at almost the same rate 13%. Government has to stop borrowing to increase liquidity in the market which will lower the overall rate. Instead of doing the most prudent thing uhuru like liberalizing agriculture and investing on tools to increase productivity he's doubling down on big 4. BTW why would formal employees and employers fork out cash to subsidize this uhuru housing project?

[Globalcitizen12]

Its not just cement PMI is decreasing clearly showing the economy isn't growing. And this was before Rotich budget which clearly will have negative impact on the economy. There's no way a bank can lend to private sector at 14.% while government is borrowing at almost the same rate 13%. Government has to stop borrowing to increase liquidity in the market which will lower the overall rate. Instead of doing the most prudent thing uhuru like liberalizing agriculture and investing on tools to increase productivity he's doubling down on big 4. BTW why would formal employees and employers fork out cash to subsidize this uhuru housing project?

Rotich is a fool for allowing uhuru to even takeon big four ill thougout spending spree.

[gout]

I watched a documentary some time back where it was indicated that some of the excavated soil/materials in the Tsavo section was/is being used as a cement substitute of sorts.

[RV Pundit]

I think Rotich is borrowing at 7-10% - and they've borrowed 1/3 of bank loan books - and he's issued two eurobonds - worth nearly 5B dollars - all that was money destined to banks. I think personally we should let this rate capping go the full cycle. Let us have one bank collapse due to rate capping - not governance issues - and we will know they are in trouble. In the meantime Rotich should find ways to borrow more from the likes of Africa Dev Bank, China, Eurobond and the pesky Worldbank.

Rotich is borrowing at 1.5% less interest
https://www.businessdailyafrica.com/economy/Cost-of-domestic-loans-falls-by-1-4-pc/3946234-4660498-o3sqk4/index.html

I reckon big 4 is causing delay in investment in real estate. Here is Uhuru talking big about delivering 500,000 units in 5yrs at dirty cheap rate. People have to stop and re-think. If Uhuru will deliver house costing 1-3M - that is game change. So maybe this lull before the storm - if Uhuru get the China housing machine off ground - our cement consumption will shoot through the roof. 500,000 units of housing is no joke. That is building a new city the size of Mombasa in 5yrs.

Its not just cement PMI is decreasing clearly showing the economy isn't growing. And this was before Rotich budget which clearly will have negative impact on the economy. There's no way a bank can lend to private sector at 14.% while government is borrowing at almost the same rate 13%. Government has to stop borrowing to increase liquidity in the market which will lower the overall rate. Instead of doing the most prudent thing uhuru like liberalizing agriculture and investing on tools to increase productivity he's doubling down on big 4. BTW why would formal employees and employers fork out cash to subsidize this uhuru housing project?