Expect interest rates to be north of 25% come December & the banks will have to adjust your loan accordingly.
If you have spare money, @Web Dev, I advise you to withdraw it all from the bank and invest in short term instruments @CBK. Rates are now @21.5%.
In other related news:
President Kenyatta declared that the
Eurobond will “stop government
borrowing from domestic markets,
thereby helping drive down interest
rates which will boost investment, spur
economic growth and provide growth to
our people”.
One year down the line, bank interest
rates are at their highest in more than a
decade, inflation has gone haywire, the
government is broke and the story of
Eurobond funds being invested in
“infrastructure projects, energy,
transport and agriculture” has gone
silent.
Saddled with huge project loans and with
few borrowing options, the government
has resorted to its old bad habits of
borrowing locally to fund its
conspicuous consumption.
The Sunday Nation has established that
the government is contemplating
borrowing Sh78.8 billion ($750 million)
syndicated loans from local banks to
plug a Sh600 billion hole in the budget
in order to pay salaries for civil servants
and generally run its affairs that risk
grinding to a halt.
Open a CDS account with CBK & wait for a week or so. Then on Friday soma gazeti uone what CBK is offering. Make your application to purchase by the following Wednesday. CBK will meet on Thursday to decide on the rate. Then by Monday make sure umewalipa.
Iyo sijui. But they may not change since these loans have low risk to the bank because of the amount & repayment period. By the way, most loans from small time guyz are usually performing and the borrowers of most non performing loans are usually big shots
The worst thing you can do in a worsening economic situation is panic. See good in everything n keep watch…the next pack of millionaires are being made as we speak.
Gorofa yako inaweza hata isha during this crunch. Don’t lean on your own understanding.
Trust me am not panicking. In fact I benefit when the dollar rate goes up and interest rates increase. But I am concerned about the rest who may not have an advantage like me. My wife has a biz which will definitely be affected by such. I also have relatives with bank loans. Let the economy perform well for the benefit of the majority
From the word go CORD was against the Eurobond idea. Now the government borrowed billions when the dollar rate was 86 and now they are paying when the rate is 105. Secondly, what is the one positive impact this borrowing has had for the past 1 year?
First there would be no crisis to begin with because CORD wouldn’t have borrowed.
However, assuming that they did borrow, if corruption had been checked there would be no need of going to the local banks to borrow more. Corruption slows the overall development of an economy.