Hello talkers. I hope your day is coming on just fine. I need some help in relation so some advice I need to impart to a very good friend and I’m at a loss since im not well versed in that area. This guy is a colleague and apparently he has a cousin who happens to land construction tenders from the county govt(not nrb) on a regular basis. As it were, this cousin needs some boost this time round of around 2.5m to be able to complete a project with the promise to repay the loan amount plus 10% profit in a month’s time. County governments wanalipa ama ni kuzungumkuti tu? I told him that’s a pretty risky venture but he was confident about the payment coming through since apparently the guy has his own connections in those offices which he uses to pull strings in ensuring prompt payment. Now the question is, assuming they cobble up an agreement and pay a lawyer a visit, is that ROI commensurate with the investment and possible risks involved? Watu wanafanya biashara na CG’s, na wanabiashara in general leteni maoni yenyu kidogo na nitashukuru
The flag is the repayment period, one month issa lie. Btw all of these counties are broke, tenders hazilipwi. They have only received about 35% of their allocated money. Maybe in 3-5 months time.
Tell him to approach Equity with that story and see bankers laughing.
chunga sana my frend wacha achukue loan kwa bank
County govt has become tricky nowadays.
The average debt payment cycle is now 5months - and this still depends if you have someone pushing for you.
Ask the friend to issue you with a bank guarantee or a Post Dated Cheque (Kes 2.5m plus interest) if serious on lending him the cash.
Akikataa - jua umeponea.
My County has not payed suppliers for two years now. Jijazie
Bank Guarantee. PD cheques could bounce.
Its a crime for a cheque to bounce in Kenya.
It is also a crime not to pay your debts. If a bank will not take a PD cheque as collateral, why would you?
Calling it a crime will not stop the cheque from bouncing!
A friend of mine is chasing his 4M for services rendered to a certain County (2M last FY and 2M this yr). It’s like the County guys are looking for ways of dodging him.
Unless your friend does not mind his reputation-that is already a red flag.
Issuing bad cheques is classified as a criminal offence under Section 316(A) 1 (a) of the Penal Code as amended by the Finance Act No.4 of 2004.
Stockbroker charged over bouncing cheques - Business Daily
How to protect yourself from bounced cheques - Business Daily
and you think that prevents confidence men from issuing them?
most counties have only received monies for recurrent expenses…and some are even struggling paying salaries,
Run away very fast, there’s a contractor I know who went flat broke doing projects for a county in Nyanza and his staff scattered all over Kenya after he was unable to pay them their dues. The formerly brash and boisterous individual rolling in money and driving big cars is now a pale shadow of himself spending most evenings sitting alone in a pub corner drinking his miseries away.
To be forewarned is to be fore armed.
in practice, however, prosecutors dont use this 2004 law …they are fond of treating it as a fraud and forcing it to the charge sheet as “obtaining goods (and services) under false pretence”
Hapo sasa unatreatiwa kama conman or jangili
Ahsanteni sana kwa maoni. I’ll just have to tell him tread carefully on this one. Heck…I’ll invite him here ajisomee
Good info…
Don’t dare deal with the counties as your sole clients,…I supplied some agricultural machines to Laikipia county wakati was Gov.Joshua Irungu last year around July n upto date I have never been paid full amount,…nilipatia hao officials za macho mpaka I got fed up and assumed it as bad debt.
If I had relied on that sales money I would have been finished,…
don’t worry, deni ya serikali haipotei kama ni genuine though inakaaga saa zingine and it’s damn inconvenient. [SIZE=1]a department owes me some invoices za 2015 na bado nina matumaini wata-settle siku moja…[/SIZE]