Page 60 - SACCO STAR ISSUE 43

LOCAL NEWS ROUNDUP

LOW-COST HOUSES TREASURY PROPOSES BILL 500k Kenyans blacklisted in CRBs
DEVELOPERS TO GET TO REGULATE FINANCIAL
30% LAND OFFER PROVIDERS A total of five hundred thousand loans defaulting
Kenyans are currently blacklisted in Credit Reference
In a move to cushion housing Financial Markets Conduct Bill 2018 Bureaus (CRBs), a new report by Transunion Credit
developers participating in proposed by the National Treasury Reference Bureau has showed.
the government’s low cost aims at taming all financial service
housing plan, the Ministry and products providers by forming The surging number of defaulters is largely attributed
of Housing has rolled out a a behavior policing body-Financial to the more than forty five mobile money lending
plan to award them 30% of Markets Conduct Authority (FMCA). applications established in the country that have
the project land. eased borrowing process and cost.
The body will oversee prudent
Charles Hinga, the Housing lending practices by enforcing With no rule barring borrowers from reckless access
PS said the government will penalties for consumer protection to credit from more than one money lending app at
be guarantor of the funds from among other practices; loans the same time raises public susceptibility to getting
used by the developers and that lead to substantial hardship listed, some for as low as Ksh 500, heedless of the
will settle up the funds over on retail borrowers, charging rates prevailing consequences.
an agreed time period. above the FMCA prescribed one and
operating without a financial conduct When a lender sends a name for blacklisting, that
The PS said Nairobi’s Shauri license. person needs a Certificate of Clearance that costs
Moyo (A, B, C, D), Starehe A& Ksh 2,200. This certificate is valid from the issue date
B, Muguga Green, Makongeni The bill, however, has been opposed and it will take less than 48 hours for the financial
and Mavoko in Machakos by CBK’s Governor Patrick Njoroge institution to update its books and clear one from
will have the first lot of high- saying FMCA will render the Central high risk borrower list.
end houses. Bank of Kenya ineffective by depriving
it powers to execute its mandate. CBK RETAINS LOAN RATE CAP AT 13.5%

Central Bank of Kenya retained the benchmark
borrowing rate at 9.5% presenting a relief to
borrowers. The maximum rate for loans has been set
at 13.5%, CBK says, to allow the economy to fully
recover from previous rate cap and to boost the
economy.

Inflation slowed to 3.73% in April this year but
ranged within government’s desired percentage of
2.5-7.5%.

The economy is below targets with the credit growth
rate ranging from 12-15% which is below CBK’s
boards with the private sector credit growing to 2.8%
by April, up by 0.7% a year previous to February.

CO-OPERATIVE BANK’S Q1 PROFITS UP BY 6%

Co-operative Bank said its profits for quarter 1 increased to Ksh 3.4 billion (6.25%) up
from Ksh 3.2 billion, a similar period in 2017 buoyed by growth in income from loans.

The institution’s interest income rose by 9.25% to stand at Ksh 10.38 billion unlike Ksh
9.51 billion the previous year. The net interest income was posted at Ksh 7.4 billion
which increased by 9% while non-interest income grew from Ksh 3.39 billion a similar
period in 2017 to Ksh 3.52 billion which is a 4% increment.

In a statement, Gideon Muriuki, the bank’s Chief Executive Officer, lauded the leap
while promising boosted growth and profits by patronizing the financier’s laid digital
banking system.

58| SACCO Star Magazine