Thursday, October 13, 2005

Bank Barons

Jaindi Kisero points out that commercial banks borrow money from you at 2% and lend it to the government at 8%.

Year end
ICDCI closed the year with a profit after tax of 295 million, up from 241m in 2004. While investment income dropped sharply from 355m to 240m, expenses remained flat at 80m. The increased profit comes from the 1st time inclusion of UAP Insurance results (ICDCI owns 24% of UAP which returned a profit of 334m) and this lifted up income from share of associated companies from 72m to 245m. In addition to a reduced stake in Uchumi, ICDCI also owns 1% of KCB and EA Breweries, among other investments. The company will pay a dividend of 3 shillings per share (same as in ’04) on December 7 to shareholders of record as at November 10th.

New Uni
The Great Lakes University of Kisumu, a new institution, is being built in Kisumu by the Tropical Institute of Community Health & Development (TICH) in Africa.

Flight plan
The Standard on Saturday reported that Air Kenya had cleared a 333 million shilling debt with Barclays bank to avoid being placed under receivership. In May, Barclays had appointed a Statutoty Manager when the airline defaulted on its debt.

Ugly face of food aid
American generosity must be good, not just for the world's hungry, but also for American agriculture.

3 comments:

Mimmz said...

Wow! Have we no economists working for the government to educate the pertinent members that they can borrow from teh people directly and say offer them some 3-4% rate to offset competition from the banks?
About that debt payoff...nice!

About the food aid, is it really aid? I'm glad the world started to take attention to these issues though. Solution is the African governments need to pre-plan for these droughts because they happen often and within a cycle. I'm not convinced the continent is not growing enough to feed its inhabitants. Good management across the continent will both boost economies and ensure genuine aid reaches people when it's needed.

Anonymous said...

I was just browsing the net and happen to come across your blog. Nice to see decent conversation from fellow Kenyans.
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tomas said...

about the bank lending to the Gvt at 8% after borrowing from the public at 2%: well... thats jus business. Only the clever. The Banks are only doing whats has been available too many for years.
the problem that people face is one...ignorance...believe me therer are millions of Kenyans out there who choose to remain ignorant of the financial opportunities available to them only if they opened their eyes

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