Friday November 1, 2019 - President Uhuru Kenyatta and his family are among few Kenyans who are smiling all the way to the bank after the National Assembly’s Finance Committee approved the removal of interest rates cap that has cut credit to businesses in the country.
The removal of the cap, which set a ceiling on commercial rates at four percentage points above CBK’s benchmark rate, will enable lenders to better price loans and be less selective about lending.
Following the removal of the cap, the share price of banking institutions rose with a good margin and Uhuru who is the owner of NCBA bank was among those who pocketed billions due to the cap removal.
Uhuru, his brother Muhoho, and mother Mama Ngina Kenyatta jointly own 196 million shares (13.2 percent) of the newly listed shares at NCBA – an entity created after CBA merged with NIC Bank.
When the stock markets opened on Thursday morning, NCBA’s share price was at Sh36.95 which has continued to rally to Sh40 as of Friday morning.
By Friday morning, Kenyatta’s stake at NCBA had risen from Sh 7.7 billion to Sh 8.7 billion meaning that Jomo’s family made a cool sh 1 billion in less than 12 hours!!
No wonder US Economist and Policy Adviser, Dan Riffle said “Every Billionaire Is A Policy Failure”
The Kenyan DAILY POST