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Mr. Shylock, stop cherry picking clients

Mr. Shylock, stop cherry picking clients


Bankers lobby Kenya Bankers Association want the State to repeal and replace the 14% interest rate capping law. Sad.

A common joke says that only Kenyan banks do not have washrooms for their clients. Such is the mean mien of bankers that they even string their pens to their desks doubting the clients’ signature trustworthiness yet they want us to entrust them with our money.

What the banks want is to continue to enjoy super-normal profits as Kenyan underclass collapse under the weight of astronomical interest rates of yesterday.

They have released an obviously skewed research purporting to show that the country is credit starved because of the interest rate capping law. Who believes that?

As a consequence, even the most sterling creditworthy clients I spoke to report being cherry picked by the bankers. Suddenly they cannot trust us any longer. They have resorted to lending to the government since it is safer. They are in effect crowding out the private sector by opening their vaults to government papers. Never mind the money they are now lending to the government is harvested from the wananchi they do not feel any moral obligation to lend to.

As a soft target, bank employees have been laid off in their thousands under the pretext of the economy is doing badly.

The reality is that the economy is working but it isn’t working for everyone. It is working for those with access. Those in government and those in big money trade.

Mr. Shylock, digital banking is the way to go. Long bank hall queues and bureaucracy will only lead you to many more profit warnings in the future. 

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