Rate Caps


Village Elder
I think the economy is in the doldrums right now. I have been following the financial results of listed companies, and almost all are recording a decline in profits:eek::eek::eek:, a typical recession. I don't know how guys in the private sector are performing, maybe some of you businesspeople can give your views. I think the rates cap low signed by HE last year might have caused this as experts predicted. How easy/hard is it to access credit? How are private businesses performing? Are people buying assets such as land, and commercial vehicles as much as they used to before the caps? What about apartments? If this law is not amended, banks will face a few bad years before evolving.


Village Sponsor
Credit oils the the wheels of the economy. Without it Supplier akikosa kulipa unabaki bila pesa ya mshash na other bills...

Banks' evolution was cost cutting plus apps. Beyond that, I see nothing else. Maybe mergers and acquisitions.


Village Sponsor
There is a small micro bank that is asking farmers to insure their cows in case they want to take a loan and they have written cows as their collateral security. Earlier on they didn't go through this hustle. People are saying get credit is hard nowadays. As a talker has stated, banks will reduce their work force and come back to small customers again
Banks may also move to other businesses. I saw something like an equity clinic. Banks are going to brokerage business. Na wengine insurance, wengine having a logistics arm of the business. They will be having the money to fund themselves to handle big business. It'll never go back to what it was, instead if they attempt to reverse, it's only the banks that will gain.

The price can go lower kwa factory but not kwa shop