KCB has lowered borrowing rates for a variety of retail loans by up to 5% and the move is already having a knockdown effect with customers, at other bank, asking for their loans rates to also be lowered likewise.
But for KCB, their intention is probably to accelerate their lending which has remained flat this year. From January to June 2006 their loan book is up less than 1%, compared to peers Barclays and Standard Charted whose loan books have increased by 7% and Equity Bank whose loan book increased 46% in the half year.
Card ping
CFC card account holders can receives SMS each time their MasterCard’s are used/charged.
School Finance Loans
(From Africa Intelligence )
The International Finance Corporation (IFC) will provide financing for private school institutions in Kenya, towards purchase of educational materials, and other capital expenditures under a formula which it inaugurated in Ghana last year.
On the flip side Bretton Woods Project offers six reasons why the World Bank (and IFC) should not finance educational projects
COMPETITION… that’s what we need… that will reduce costs as banks compete with each other for your business.
NIC started with flat fees & now SCBK & BBK offer them as well.
I expect more friendlier loan products as Kenyan banks face competitive pressures.
Banakale,
Biometrics had an impact on the 2006 elections because some people who wanted to vote twice were caught by the Electoral officers and are now paying for their sins.
I feel good this story was authentic and many people learnt from it.
it is sad that many people still feel that the elctions where rigged.
regards
@ Bankele
Guess what, I pay “only” 12% on my credit card…15% for a biz aint cheap
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Alexcia – Are u in Kenya?
You can’t compare the banking system in the USA/UK/Australia & Kenya…
Kenyan banks face 3 major hurdles:
– No credit reference bureaus thus serial defaulters can hit multiple banks. This raises the costs for genuine borrowers since banks pass this cost on!
– Land Title Deeds are often “faked” thus even after all the documentation seems proper, the bank loses out to fraud. There needs to be an INDEPENDENT verifier of Title documents not influenced by politicians or corrupt government officials.
– The litigation process (in case of default) is drawn out which costs the banks legal fees & opportunity cost thus raising cost for the “good” borrowers!
Solving #1 would help #3.
Many politicians are #1s thus they don’t want laws that assist the banks!
Furthermore, the politicians & government honchos oppose reforms (#2) since there is a gravy train!
Coldtusker: NIC’s flat fee was a signal that costs had gotten out of control
– reference bureaus should get more teeth next year (unless Parliament objects), but unfortunately land and court issues remain major headaches for banks with little reform efforts in sight.
Brenda Zulu: Thanks for update. We are noweher near biometrics and have to wear ink-stained fingers so as not to vote twice
alexcia: Cards here charge about 28%, so 15% for a business while is not abut average