Interest capping declare unconstitutional - Banks have won.

[RV Pundit]

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Now lets the binge borrowing resume - and the usurious interest. Implementation suspended for 12yrs.

[gout]

It will be devastating to government's domestic borrowing. With Uhuru groping all over, a cash crunch will keep him sober or send him to endless blackouts. The effects of the five years plunder will be felt by all those who kept asking 'kuna pesa yako inaibiwa'?

Is this Mpesa-KRA pin practical?

[hk]

This is wonderful, let the market determine the interest rates, we don't need spreads being capped. This will force tbills rates to rise to 18% or there about. Which will mean government borrowing locally will come to a sudden halt. Even rolling over debt will be a problem. I just wish it kicked in sooner instead of waiting for 1yr.

[RV Pundit]

Unless Uhuru start selling some gov assets - and he doesn't look likely - public sector borrowing has to now stop.

This is wonderful, let the market determine the interest rates, we don't need spreads being capped. This will force tbills rates to rise to 18% or there about. Which will mean government borrowing locally will come to a sudden halt. Even rolling over debt will be a problem. I just wish it kicked in sooner instead of waiting for 1yr.

[GeeMail]

JKIA and sugar parastatals are in line to be sold, if not already.

[gout]

Must be NIS advising against sale of these assets on basis that it will be perfect money laundering option for Ruto and allies. Uhuru guys want to snap up the assets without competition. That or the loss of political patronage - corruption nexus.

[Nefertiti]

I don't get it - has the cap been suspended for a year?

[RV Pundit]

The capping has been declared unconstitutional for usurping CBK independent role to regulate banks or something like that. But capping will be in place for 1yr as parliament rectify their "mess".

I don't get it - has the cap been suspended for a year?

[vooke]

We are used to constitutionality being about fundamental human rights. I was surprised this touched something else in the katiba; the work of CBK. What a clever way to get back at the government!

That this ruling was made assures me that judiciary is not entirely at the mercy of State House contrary to what many critics think

[hk]

Treasury has been negotiating  with IMF to get standby loan https://www.standardmedia.co.ke/business/article/2001313448/kenya-confident-of-securing-imf-loan-facility.  Last year treasury said they didn't need the loan, what has happened in the last 3months? Maybe is cause rolling over Euro bond is becoming difficult without IMF standby guarantee?

[RV Pundit]

Standby facility is always good. Kenya never tapped into it. I think with budget deficit coming down & now interest rate declared illegal - IMF should be more than happy to indulge treasury

Budget deficit coming down
https://www.businessdailyafrica.com/markets/marketnews/Budget-deficit-tipped-to-fall-below-6-3pc/3815534-5028976-eq3bnz/index.html

Treasury has been negotiating  with IMF to get standby loan https://www.standardmedia.co.ke/business/article/2001313448/kenya-confident-of-securing-imf-loan-facility.  Last year treasury said they didn't need the loan, what has happened in the last 3months? Maybe is cause rolling over Euro bond is becoming difficult without IMF standby guarantee?

[hk]

Standby facility is always good. Kenya never tapped into it. I think with budget deficit coming down & now interest rate declared illegal - IMF should be more than happy to indulge treasury

Its an insurance, last year government said they had enough reserve didn't need it. Budget deficit is coming down due to poor funds absorption rate not cause the KRA is collecting more money. Remember treasury early this yr had to scramble to raise $1b from expensive  commercial syndicated loans. Treasury badly need IMF standby loan as insurance to ease rolling over of Eurobond, otherwise the interest rate on eurobond might shoot up to 9%.