Equity in trouble as COVID-19 brings uncertainty.

[RV Pundit]

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Most SMES and retail customers are getting a hit - and cannot repay loans.

https://www.businessdailyafrica.com/news/Equity-halts-Sh9-billion-dividend-on-Corona-fears/539546-5563718-qsnb18/index.html

[Kadudu]

Hardly any business that has not been hit and all over the world. Nothing is the way it was back in February. Things will take time to recover and some economists say up to 3 years. Equity is just a victim of the circumstances.

[RV Pundit]

Yes, already Kenyan banks have restructured 300b Kshs. Turn out other banks have also withheld dividend. The worst thing is uncertainty. There is nothing business or economy hates than uncertainty. That is why political stability is critical. But COVID-19 uncertainty is even greater than that - nobody is sure when it will go away or it will be with us like HIV-AIDS.

Poor Kenya is dealing with twin problem of political and covid-19 instability. The economy will go to the dogs.

Hardly any business that has not been hit and all over the world. Nothing is the way it was back in February. Things will take time to recover and some economists say up to 3 years. Equity is just a victim of the circumstances.

[veritas]

I like this type of lifestyle. I think it makes people re-evaluate their priorities. Some cope better than others I noticed. I agree it's bad news for consumerism and capitalism. I'm sure OO approves. God bless dearest Comrade OO.

[hk]

Yes, already Kenyan banks have restructured 300b Kshs. Turn out other banks have also withheld dividend. The worst thing is uncertainty. There is nothing business or economy hates than uncertainty. That is why political stability is critical. But COVID-19 uncertainty is even greater than that - nobody is sure when it will go away or it will be with us like HIV-AIDS.

Poor Kenya is dealing with twin problem of political and covid-19 instability. The economy will go to the dogs.

Hardly any business that has not been hit and all over the world. Nothing is the way it was back in February. Things will take time to recover and some economists say up to 3 years. Equity is just a victim of the circumstances.

The CBK allowed the banks to restructure the loans without declaring them as nonperforming loans. After moratorium those loans will have to be classified as nonperforming loans wiping out all the banks profits. Economy isn't going to snap back after the curfew and lock downs. Its not just banks, even EABL declared profit warning, Java is trying to renegotiate rents. If we had a responsible government and legislature will be looking at easing bankruptcy and restructuring laws. 
In the meantime the excesses of jubilee government debts are due https://www.businessdailyafrica.com/datahub/Debt-payments-forecast-to-cross-Sh1-trillion-mark/3815418-5563594-6hm73l/index.html , and this can't blamed on BBI.  Bottom line Covid was the straw that broke the economy back. The beauty of this is that government will be very weak going forward and can't enforce the crazy regulations that have hampered businesses. 

[RV Pundit]

Yes 1 trillion Kshs annually would require revenues to hit 3 trillion - and I don't see that happening. I guess soon IMF will come and start enforcing the measures. Gov has to think now about selling assets to settle some of the debts.

Raila skills in welding and economic recovery are now required...otherwise, Wanjohi was Mashati has no legacy to go home.

Thankfully SGR is given Naivasha line some lifeline - and now Gov can force Uganda and South Sudan to use Naivasha Dry Port - and that SGR may eventually become viable.

Yes, already Kenyan banks have restructured 300b Kshs. Turn out other banks have also withheld dividend. The worst thing is uncertainty. There is nothing business or economy hates than uncertainty. That is why political stability is critical. But COVID-19 uncertainty is even greater than that - nobody is sure when it will go away or it will be with us like HIV-AIDS.

Poor Kenya is dealing with twin problem of political and covid-19 instability. The economy will go to the dogs.

Hardly any business that has not been hit and all over the world. Nothing is the way it was back in February. Things will take time to recover and some economists say up to 3 years. Equity is just a victim of the circumstances.

The CBK allowed the banks to restructure the loans without declaring them as nonperforming loans. After moratorium those loans will have to be classified as nonperforming loans wiping out all the banks profits. Economy isn't going to snap back after the curfew and lock downs. Its not just banks, even EABL declared profit warning, Java is trying to renegotiate rents. If we had a responsible government and legislature will be looking at easing bankruptcy and restructuring laws. 
In the meantime the excesses of jubilee government debts are due https://www.businessdailyafrica.com/datahub/Debt-payments-forecast-to-cross-Sh1-trillion-mark/3815418-5563594-6hm73l/index.html , and this can't blamed on BBI.  Bottom line Covid was the straw that broke the economy back. The beauty of this is that government will be very weak going forward and can't enforce the crazy regulations that have hampered businesses. 

[hk]

Yes 1 trillion Kshs annually would require revenues to hit 3 trillion - and I don't see that happening. I guess soon IMF will come and start enforcing the measures. Gov has to think now about selling assets to settle some of the debts.

Raila skills in welding and economic recovery are now required...otherwise, Wanjohi was Mashati has no legacy to go home.

Thankfully SGR is given Naivasha line some lifeline - and now Gov can force Uganda and South Sudan to use Naivasha Dry Port - and that SGR may eventually become viable.

The fact that Uganda and SS have to be forced to use Naivasha Dry port it means it's not viable. Just like the entire SGR, users have to be forced to use it.  Finally at least now common mwananchi understand the ineptitude, corruption of uhuruto government starting 2013.  Raila is definitely not the solution accompanied by the likes of billow kerrow but neither is the current status quo, of uhuru or Ruto. The good thing is the immutable law of economics will force the government to do the inevitable.   

[gout]

The roping in Raila is therapeutic. The Uthamaki proponents cannot believe muthamaki would sink with them - they are clutching at any stray that promises to redeem them.