@Okiya was right..... Loans to be priced using the KBRR!

he he…that’s real funny…

Technically the KBRR is the rate to follow if the CBK wants to be objective and professional. Pragmatically, the CBR is the best rate to use as it will allow banks to be more innovative. Capping of interest rates is not anachronistic like most people want to believe. I personally, vouch for CBR as it holds more promise in the grand scheme of things. But all are welcome.

I will be taking a loan on 15 September. Hehehehe (insert Tom evil laughter when he knows he has cornered Jerry.)

what are they? asking for several friends…

First if all if Okiya has to run he should change his name from Okiya to “key-a”,we are tribalist .a smart talent like Okiya will be wasted by our tribal marshals

you are worried over nothing…

My friend @gashwin I always respect you you know that . Kenya is ruled by tribal leaders .if you want to be a president you have to tow tribal leaders from each tribe to win. There is no way you selling you correct policies will make you win elections .that’s why kamwana needs arap hyena all day and a bit of ababu

Central Bank Rate (CBR) is the interest rate at which a bank pays a loan borrowed from the central bank. For example, if KCB borrows a loan from CBK it will pay the loan at 10.5%… CBR is reviewed and announced by the Monetary Policy Committee (MPC) at least every two months

The other is the Kenya Base Rending Rate (KBRR). Generally, CBK advises Banks the rate at which it is safe to lend money using KBRR…so ideally banks should add a small premium on the KBRR and factor in their costs and come up with the interest rate to charge you (The customer).

KBRR is a bit complicated so let me cut paste this from the CBK website

Determination of level of KBRR

[ul]
[li]KBRR is computed as an average of the Central Bank Rate (CBR) and the two-month weighted moving average of the 91-day Treasury bill rate.[/li][li]The Central Bank of Kenya, through the Monetary Policy Committee, reviews the KBRR every six months. The past and current levels of the KBRR are:[/li][/ul]
[ol]
[li]8th July 2014 – 9.13 percent[/li][li]14th January 2015 – 8.54 percent[/li][/ol]
Lending Rate

[ul]
[li]KBRR is the interest rate a bank charges on riskless lending.[/li][li]Bank loans will be offered at an interest rate of KBRR + “K”.[/li][li]“K” is the premium levied by banks above KBRR and should cover the identified loan-associated risks. The premium “K” could be negative, for instance, in the event that the lender perceives advantages to being associated with a particular borrower.[/li][li]Banks are required to disclose to their customers the composition of “K”.[/li][/ul]
Publication of the average premium (“K’)

[ul]
[li]The Bank will continue to provide information on the premium “K” to the general public as and when it becomes available.[/li][li]The Central Bank of Kenya will publish the bank specific data on the weighted average “K” for each type of loan product.[/li][/ul]

You see how mbirrionaires get dirt cheap cash? Advantages of being associated with a borrower is quantified, inaitwa social capital. I was in a dude’s office and he calls his bank asks for. 50M and says “hapana wee theremsha hio handi 9 parasent… 9.5 parasent hapo sawa” and like that his eyes give a 50M shine.

any examples?

can i negotiate interest rate a chochio capital ya 200k pale muramati ama lazima ikue mamillioni?

:D:D:D:D:D smart joker, haujaambiwa poa.

[ATTACH=full]56310[/ATTACH]

Mamia ya mamillioni, ukue na account in a Mamilioni au use shosholite with 1M followers and you IG a Selfie ukisign on dotted line

Note, all money comes from the Central Bank. They give it to banks to loan to sisi mwananchi. Your money in the savings account is taken back to the Central Bank to loan to the Country. As a banker, their job is simple. Give out loans so that your Company Assets increase and you go back to Central Bank to get more money.
[ul]
[li]KBRR is the interest rate a bank charges on riskless lending. As at as at 31st March 2015 it was 8.54%[/li][/ul]
KBRR is computed as an average of the Central Bank Rate (CBR) and the two-month weighted moving average of the 91-day Treasury bill rate. The Central Bank of Kenya, through the Monetary Policy Committee, reviews the KBRR every six months.
The Kenya Banks’ Reference Rate (KBRR) was introduced as a uniform base lending rate across the banking sector to enable consumers compare the pricing of loan products. Publication of information on interest rates for the banking sector is therefore expected to increase transparency, competition, enhance credit access and lower the overall cost of credit to borrowers.

Section 36 (4) of the Central Bank of Kenya Act stipulates that the Central Bank shall publish the lowest rate of interest it charges on loans to banks and that rate shall be known as the Central Bank Rate (CBR).

The level of the CBR is reviewed and announced by the Monetary Policy Committee (MPC) at least every two months and its movements, both in direction and magnitude, signals the monetary policy stance.
Month Rate
Jul 10.50%
May 10.50%
Mar 11.5%
Jan 11.5%

Name of interest rate
country/region current rate
South African interest rate, SARB South Africa 7.000 %

American interest rate, FED United States 0.500 %
Australian interest rate, RBA Australia 1.500 %
Banco Central interest rate, Chile 3.500 %
Bank of Korea interest rate, South Korea 1.250 %

Tia Dalma, Education: doctorate in Economics at Yale University (2010), Master of Philosophy at University of Oxford (2006), Bachelor’s in Economics at London School of Economics and Political Science (2000)
Note: The prerequisites required for a Master of Philosophy degree make it the most advanced research degree before the Doctor of Philosophy (Ph.D. or D.Phil.).

Great read , thanks

Yaani lazima utuekee credentials at the bottom :D:D:D:D:D:D

My mind yearneth for yours
Like a fly and the flytrap
For you walketh in intelligence
Like the alien life.

Your mind singeth to me
I willingly give me whole being
What wouldn’t I give
For a chance
To worship
Your beautiful mind.