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Tuesday, October 12, 2010

Early Bird PORK Bid


In the past few months there has been alot of unwarranted and thinly veiled ill intentioned dismissing of vice president Kalonzo Musyoka in several blog posts on this forum. The VP has been written off from featuring anywhere in the line up to the 2012 general elections, much less as a serious contender for the presidential vote (the first of many to be held under a new constitution). Questions have been asked such as what does the MP for Mwingi North have to offer, and what would he bring to the table if he couldn't even influence and sway voting patterns in his constituency as was seen during the recent referendum


In an apparent answer to both his online and long time critics the Vice president has this week launched his early bird no holds barred special campaign bid for the presidency. And why not? The Vice President's attempt to become the 4th president of the republic of Kenya will not be treated with the seriousness they deserve only by unperceptive cynics. The facts speak for themselves because here is a politician who just recently celebrated his silver jubilee in politics with exemplary record service representing his constituency from 1993 till date. This is not a man stuck in old ways of doing things


The vice president clearly is a man who is cut from presidential material cloth. Until now his diplomatic political skills have been temperately used in warding off childish political opponents friendly fire from their followers who are manipulated to harrass and intimidate public figures speaking at official functions. Kalonzo may have cut his teeth as a KANU politician but its clear for all to see he was only in the mama na baba party and not of it.
It makes alot of sense now for the VP to run for the presidency when at the dawn of a brand new beginning for the nation because as the 2nd in command he has been limited time and again by external circumstances that have prevented him from showing his true colours as a servant leader who would bring the much needed positive changes while remaining focussed on what he was elected to do. Here at Kumekucha we welcome the Vice President's early bird presidential bid

47 comments:

Anonymous said...

If there is one top Kenyan leader you can’t easily tell what he stands for, it must be Kalonzo. He's lukewarm and does not stand out from the crowd, he blows cold and hot depending on the circumstances. Not sure I am right to say he often limps on both legs.
His blind and unquestioning loyalty during the days of baba na mama makes one wonder if electing him is not akin to recalling the old Moi a.ka professor of politics. I therefore do not see this man going past 10% of total votes cast ; whether he starts campaigning now or not.

Taabu said...

Luka,
Pole, you must be smarting from an acute trauma of WALKING ALONE thank to yanks TH+GG.

That settled with regard to the VP, please watch out for your tongue, it might as well get permenently stuck in your cheek.

Remember siasa mbaya, maisha mbaya. Kenya needs a SAVED CEO and only one fits that bill. All others are pretenders.

PS: Opinion polls have no voting cards of their own, so leta ingine.

Anonymous said...

Bashir will not let South go-where oil is.

What justifies his presence in Kenya on 4thAugust!Khartoum, Tuesday

Sudanese President Omar al-Bashir warned today he would not accept an alternative to unity despite his commitment to a peace deal with the south that provides for an independence referendum.

“Despite our commitment to the Comprehensive Peace Agreement, we will not accept an alternative to unity,” Bashir told parliament in a speech, without specifying his reaction in case of a “yes” vote in the south’s referendum.

South Sudan, which fought a two-decade civil war against the north that ended in a 2005 peace deal, is set to vote on whether to secede or remain part of the country in a January 9 referendum.

The peace deal gave the former southern rebels, the Sudan People’s Liberation Movement, semi-autonomous powers and a share in the Khartoum government, and promised a referendum on southern independence.

“Unity is the probable outcome for the south if it is given freedom of choice in a fair, free election. Sound logic leads the south to unity,” the president said.

Analysts say the vote is expected to favour independence.

Bashir pledged a fair referendum, but added that demarcation of disputed border points with the south was a “decisive factor in conducting a fair and free election.”

Sudan’s military last week accused the southern army of crossing a disputed border, warning that the “violation” could derail the referendum.

The south’s president, Salva Kiir, asked a visiting delegation of United Nations Security Council envoys last week for UN peacekeepers along the border ahead of the referendum.

Eric. said...
This comment has been removed by the author.
Anonymous said...

Now Michuki speaks afterUK get headlines.
who are they fooling. Face saving?

Tomorrow Ruto will speak.

A fear mob right now. Rattle the snake.
He Castrated Mau Mau's as a Homeguard and he expect malipo not in his Lifetime?.
Kimendero (crasher) was what rattled many who lost balls under DO rattle a snake.

We are reliably told 3 ministers for Hague

Michuki (if only to safe/protect his commander in chief),Ruto and UK

Take this to charter Bank.Kimendero in real shit and they smoked him out this weekend to sell the un-sellable (UK) in Central. Even baba gedion failed to sell the man.

Things are elephant

Anonymous said...

Me think that this was meant to a sarcastic post. It should be a reverse psychology thing. Ie the text don't mean what they mean! If that makes any sense to you.
A satirical post it was. That is how I take it.

Anonymous said...

What does Kalonzo the honourable MP for Mwingi North have to offer the Kenyan nation at large that he has not done since his days as Daniel arap Moi's foreign minister?

And what will Kalonzo bring to the national table, let alone the Mwingi North's table and that of Ukambani table, besides his well known last minute miraculous deals of "siasa ya kupitia kati kati" that are usually done under the table?

Stand corrected but the Kalonzo we have come to know seems to be still stuck in his old trademark ways of flip flopping in desperate attempts of trying to be all things to all people.

Is Kalonzo a man cut from "presidential material cloth"? What kind of presidential material cloth are we talking about in the case for 2012?

Might it be the same presidential KANU material cloth that gave rise to the likes of Kenyatta and Moi regimes from 1963 till 2002?

As for diplomatic skills ... Well, well, lest we forget, Kalonzo is not Kofi Annan, and it would be very unfair to compare him to the likes of Salim Salim among others.

On the downside, he has never been schooled in the arts of any diplomatic tradition that we know of whatsoever.

Any politician can be appointed as a "foreign messenger" by a seating president, but it doesn't make the appointee a "diplomate" so to speak.

As for showing his true colours, Kalonzo has already done so, he did it superfluously during the many years he served under the Nyayo regime.

Furthermore, he also showed his real true kipepeo colours in 2008 and so far there is very little else in store to show for in 2012.

We live in the days of global warming and as a result the earliest bird no longer catches the worm, but always ends up in the early morning snares left behind by the bird-catchers if it's lucky.

Otherwise the earliest bird gets eaten for breakfast by the ever hungry falcons, eagles and hawks.

Anyway, Kalonzo like many other Kenyan citizens has the constitutional right to vye for the presidency whenever he feels he is up to the task and has what it takes to lead the second republic.

The final verdict will rest with the majority of the voters, come 2012.

Fortunately for the people of Mwingi North, they will have to elect a new MP if Kalonzo decides to seek temporary residency or shelter for his immediate family in the "house on the hill".

Best of luck to him in December 2012.

Anonymous said...

What does Kalonzo the honourable MP for Mwingi North have to offer the Kenyan nation at large that he has not done since his days as Daniel arap Moi's foreign minister?

And what will Kalonzo bring to the national table, let alone the Mwingi North's table and that of Ukambani table, besides his well known last minute miraculous deals of "siasa ya kupitia kati kati" that are usually done under the table?

Stand corrected but the Kalonzo we have come to know seems to be still stuck in his old trademark ways of flip flopping in desperate attempts of trying to be all things to all people.

Is Kalonzo a man cut from "presidential material cloth"? What kind of presidential material cloth are we talking about in the case for 2012?

Might it be the same presidential KANU material cloth that gave rise to the likes of Kenyatta and Moi regimes from 1963 till 2002?

As for diplomatic skills ... Well, well, lest we forget, Kalonzo is not Kofi Annan, and it would be very unfair to compare him to the likes of Salim Salim among others.

On the downside, he has never been schooled in the arts of any diplomatic tradition that we know of whatsoever.

Any politician can be appointed as a "foreign messenger" by a seating president, but it doesn't make the appointee a "diplomate" so to speak.

As for showing his true colours, Kalonzo has already done so, he did it superfluously during the many years he served under the Nyayo regime.

Furthermore, he also showed his real true kipepeo colours in 2008 and so far there is very little else in store to show for in 2012.

We live in the days of global warming and as a result the earliest bird no longer catches the worm, but always ends up in the early morning snares left behind by the bird-catchers if it's lucky.

Otherwise the earliest bird gets eaten for breakfast by the ever hungry falcons, eagles and hawks.

Anyway, Kalonzo like many other Kenyan citizens has the constitutional right to vye for the presidency whenever he feels he is up to the task and has what it takes to lead the second republic.

The final verdict will rest with the majority of the voters, come 2012.

Fortunately for the people of Mwingi North, they will have to elect a new MP if Kalonzo decides to seek temporary residency or shelter for his immediate family in the "house on the hill".

Best of luck to him in December 2012.

Anonymous said...

Why doesnt phil write anymore about how raila saved kenyan footbal by bringing hey. I remember the unveiling in the pm's office. Reminded me of the unveiling of the white political consultant during the the 2007 election. E M Forster was right: the darker races have a fascination with the lighter races.

About kalonzo, you could be right about him having no msimamo. But those are exactly the people who become president. I dont know who will be kenya's next president but am putting my money on someone who tries (or will try) to be all things to everyone.I think this is what they now call in the west "the centre". A "centre" politician has no strong views for or against anything. The reason the centre guys get elected is that they are not expected to run the country after being elected. We all know american presidents dont run the country. The corporations and other shadowy characters do.

So thinking kalonzo cant be elected prezo because he has no msimamo is being naive. Again we dont know who will win, despite our pretence to having psychic powers. We actually dont even know who will be on the ballot papers. But am betting on someone with no strong msimamo.

Anonymous said...

It doesn't matter how many times you delete what i say. This blog is becoming very childish!

Anonymous said...

Has Kalonzo ever advocated violence? No! Has Kalonzo ever stolen a molasses factory or squatters land in Malindi? No!

It is Thug Raila who has done all these things and more. So, if you want violence vote for Raila and leave Kalonzo alone. If msimamo means terming rapists and murderers as freedom fighters, then Raila is full of msimamo and Kalonzo has none. If you want a colourful thug, go for Raila, but if you want some peace after 2012, then the obvious choice is Kalonzo.

Phil said...

Another exercise in futility by Bro Dr Hon Steve Kalonzo Musyoka. Sample this.

Someone who has spent the better part of 3 years prostituting himself to PNU,

Someone who is unable to successfuly run and maintain a political party,

Someone who was totally unable to take a clear stand on the constitution campaigns and has infact spent the better part of his 30 years in politics as an anti-reformer and a KANU court-jester.

Someone who falsely calls ICC investigations into post election violence as targetting one community

Someone who campaigns against his own party members in by-elections.

A leader who has served more than 25 years yet his Mwingi constitutents still rely on relief supplies and religious run schools and hospitals for survival, a stark contrast to the nearby Kilome where Boss Harun Mwau has been doing wonders with infrustructure, water/power projects and saccos for small scale businesses..

About a million people were duped into voting for Kalonzo in 2007. Let's pray to God to open their eyes so they can consign this fella to the political graveyard where akina Moi, Nyachae, Kirwa, Awori, Murungaru are passing time.

President, he will not be. Not with the votes of the Majestic people of Kenya. Never.

Anonymous said...

Phil

I dont want to know about mwingi. Am from langata constituency. Please ask the right hon pm to do something about the roads in west and south C. If you have access to people who have access to pm please do something. I mean there is cdf and all that. Why cant our roads be done?

I suspect you will do nothing. All you do is talk about kalonzo and how he has done little in ukambani. I also suspect if he does something you will accuse him of stealing public funds.

Anonymous said...

"majestic people of kenya". which tribe is this?

Mwarang'ethe said...

Phil wrote

A leader who has served more than 25 years yet his Mwingi constitutents still rely on relief supplies and religious run schools and hospitals for survival, a stark contrast to the nearby Kilome where Boss Harun Mwau has been doing wonders with infrustructure, water/power projects and saccos for small scale businesses..

xxxx

To accuse Kalonzo of failing to "develop" his place is a punch below the belt bwana Phil.

If we go by your logic, we might congratulate Moi for "developing" his area when he was the president.

Also, Kenyans including thee, ought to have congratulated Kibaki for what they have perceived as diversion of the "national cake" to "Mt Kenya area."

Or, we might also blame Raila for poverty in Kibera.

More so, when you mention water/power projects "initiated" by Boss Mwau, something ought to click.

In the DN, we reading this:

"Each Kenyan owes donors Sh25,478." @ http://is.gd/fZZfc

Among other stuff, we are reading this:

"Ministries of Agriculture, WATER and Irrigation and ENERGY are among 11 ministries that recorded the biggest increases in outstanding loans.

Loans outstanding under Ministry of Agriculture and Rural Development increased from Sh2.8 billion as at June 30, 2008 to Sh5.5 billion in the corresponding period last year."

Is it then, that, the WONDERS of Mwau in Kilome, are a DEBT SLAVERY to other Kenyans?

Bwana Phil, it is rather a sorry state of mankind in construction of governments that, our actions are deemed good or bad by seeing only the first consequences which we can see and not the unseen and long term consequences.

Anonymous said...

Putting your money on someone who tries (or will try) to be "all things to all people" is an exercise in futility.

You will end up wasting your vote and millions of Kenyan shillings. Time will tell whether your clocky horse will win the race when it counts most.

Trying to be "all things to all people" is tantamout to being disingenuous and a political curse in itself.

It is typically prostituting onself for a bowl of stale porridge from the electorate. Any such individual will likely have no qualms betraying the people or even selling the nation to the highest bidder for a dollar or two euros.

Kalonzo will never be elected but someone from Ukambani or any other region will. Any qualified Mukamba candidate or someone else for president but not Kalonzo in 2012 and not even in 2017.

We don't have to know who or what names of qualified candidates will be on the ballots papers or election list. But a new face with different outlook on issues might be elected as a real surprise in 2012.

There will be lasting peace after 2012, but it will not be under Kalonzo's watch.

There is better choice of candidates out there, and I would like to see a qualified woman candidate get elected for the time in Eastern Africa.

The current crop of male politicians are tainted to core and have very little to offer in terms of moving Kenya in a better direction, beyond 2012.

Anonymous said...

You say Kalonzo, I say why not Ngilu. Mambo kwisha. Your next move?

Anonymous said...

Another one bites the dust. What good news it was for many seeking justice against political goons and thugs from Africa.

Callixte Mbarushimana, a fidler (FDLR) in hiding never saw it coming as he continued to raise funds for the destructive campaigns against unarmed civilian population in DRC.

The search for justice continues and it will find its way to Kenya before 2020.

Be later than never. Justice for all victims.

Anonymous said...

Moi was seen by the kikuyu elite as someone of no consequence, a fuata nyayo guy. They therefore allowed him to be prezo. Kibs has been called "fence sitter" all his political life. The Narc group allowed him to be president. kalonzo is exactly like these two guys. This is true whether or not he will make it to the house on the hill. That he was "judas" should not blind us to this fact.

Can a fresh face emerge and become president? May be, and if approved by the polico-economic elite that controls kenya. The president has to be approved by this group, and for this reason it does not matter whether he is a prefessional politician or a newcomer to politics. What did jean Bertrand Aristide achieve in Haiti?

Ok we can have a fresh face but I think we would just be setting ourselves up for another disappointment. And would the professional politicians allow it? I remember this idea was floated aorund in 2002 but nobody took it seriously.

Anonymous said...

And ghenyatta was anglicised by the brits, and they allowed him to rule. The so called real fighters got nothing. I think kenya has now been organised in a certain way and to change things you would have to do a fidel castro, which i dont see happening. Just my two cents.

Anonymous said...

@Mwarang'ethe,

The TOPIC OF DISCUSSION IS KALONZO MUSYOKA.

Not what each Kenyan Owes, what about Kalonzo can you tell us, am sure NOTHING so just SHUT IT!

Anonymous said...

Phil, which is easier: to stop reliance on relief food or to build 10 pit latrines in Kibera? If you can answer that TRUTHFULLY, then you are on the way to true enlightment and freedom from ignorance and mental disability.

Anonymous said...

Kalonzo will not make it, Hon Michuki's mention of Uhuru has made Mr. Water Melon real scared.

Just the other Kalonzo was saying that we should STOP talking about the presidency and focus on the Implementation of the New constitution.

Well Mr. Indecisive just cant marshall the numbers, we already know that Ruto is going @ 2012 alone.

Ruto vs Kalonzo - Kalonzo will get beat anytime.

Mwarang'ethe said...

Anonymous said...
@Mwarang'ethe,

The TOPIC OF DISCUSSION IS KALONZO MUSYOKA.

Not what each Kenyan Owes, what about Kalonzo can you tell us, am sure NOTHING so just SHUT IT!

10/13/10 6:25 AM

xxx

ehehehe, ok, here is 2something" about Kalonzo. From the evidence we have, he has not "developed" his place by placing DEBTS SLAVERY on the head of the poor in Kibera, or Dandora.

Having noted the above, we see no profit in discussing who is gonna be the president. It is total waste of time.

We would rather discuss real issues that matter to the poor lke this:

"Turkish Prime Minister Recep Tayyip Erdogan and China Premier Wen Jiabao said Friday their two countries would from now on trade using their own currencies, effectively excluding the U.S. dollar."

"We are forming an economic strategic partnership ... In all of our relations, we have agreed to use the lira and yuan," Mr. Erdogan said.

JEFF said...

Luke,

Every time you mention Kalonzo i remember the wreck of my car in the garage after visiting the village over the weekend.

Surely, can't something be done on Mwingi-Kamuw'ongo-Kyuso-Tseikuru road?

Anonymous said...

Sorry Mwarang'ethe, you are wrong on this. You said that phils' accussation of Kalonzo was unfair and like praising moi for developing his home area.
No they ain't the same. Moi was the president of Kenya. Kalonzo's primary objective is Mwingi constituency first and foremost. Anything else is tertiary.
If and when he becomes president of the Rebublic of Kenya, then his attension will be on Kenya intotality. Not just Ukambani but Kenya.
That is called National leadership. If for instance Kalonzo decided to day to go to my home ground of Lugari to do any development, he has to go through Hom Jirongo unless it's something to do with Prison services which is his national responsiblity. Otherwise why would he want to development my place and not Mwingi who elected him? Moreover Jirongo May consider Kalonzo interfering in his constituency. Yaaaaaaaaa

Anonymous said...

@Mwarang'ethe,
Delusion and hypocrasy is
1) Deriding the west while living within their bordersi,i.e. praising China/Turkey while browsing on broadband bought with pouns £/dollar$.

2) Recycling webpages and claiming originality for exclussive e-fame. No insults please!

3) Waxing intellectual with pedestrian/doomsday mindset

4) Most importantly trashing paper money only to be paid in the same (or you are paid in GOLD and you bought your laptop in gold too?)

Anonymous said...

@Anon 3:56 AM
Let's let kalonzo to be the person he says he is, or he wants the public to believe he is. People will only put up with it as long as he remains the the honourable MP for Mwingi North and maybe Kenya's NEXT vice president.

Mzee Arap Moi had some type of a shrewd but wicked political spine and he wielded a "Nyayo Rungu" whenever the occasion called for an immediate response.

Mzee Mwai Kibaki, was very lucky because the one time mighty Mh. Matiba was emasculated by his well known political nemesis and business peers who overly envious and fearful of his rising star.

Kalonzo is not and has never been "exactly like" the other two seasoned politicians. Riding on other people's seasonal political coattails has its limits.

President Rev. Fr. Jean Bertrand Aristide was an activist ("G.R.O. -greedy religious opportunist") who was more arrogant without a slight dose of self-taught humility.

He never had a plan A, B, C, and D, key ingredients for survival within Haitian national politics as well as among Haiti's international neighbours, including mighty Uncle Sam.

As a clergy man he should never have failed to learn several essential lessons from other religious leaders like Archibishop Desmond Tutu of South Africa.

Aristide failed to use the pulpit as an avenue for specific missions but rather decided to it as a camouflaged conduit for self-promotion, politics and consequent presidential aspirations.

Imagine for moment, Dr. Prof. Rev. Fr. Wamugunda becoming Kenya's next president. ... Well, multiply Wamugunda by 10 Aristide and see what you get for a president in 2012 or 2017.

An alternative candidate will emerge from some well known "fresh faces" in our midst, and s/he will jolt the current political system with a President Kikwete effect.

The ethnic elite no longer have the final say, neither do the so called socio politico economic cartels ("elite") of Kenya.

Times have changed and there is no going back to the old days when the "elitists" seemed to know it all and had an unfair advantage over the general population.

Anonymous said...

anon 9:41 am

how about you educate kumekucha for a change and create some awareness as to why you really disagree with mwarang'ethe's views. over to you!

Anonymous said...

@Mwarang'ethe,
Now that you narrowly FAILED to win the Nobel Prize please feed the lazy KK masses with info on how USELESS the prize is and its paper money equivalent. And while at it cut-and-paste Sumarian/Amurabian folklore. LOL!

Anonymous said...

@ anon 9:48. At least we would know father wamugunda's running mate in advance

Anonymous said...

Mwarang'ethe said,

"Having noted the above, we see no profit in discussing who is gonna be the president. It is total waste of time"

Just because you failed to be the president in "Campus" doesn't mean you take it out on innocent Kenyans baby.

After being denied the ballot because of denying severally that you are a homosexual, and lying to me that you are not.

I am with a better man now Mwarang'ethe. Good luck

Anonymous said...

Kalonzo isn't worthy,

1) He aint a darling of the Media

2) What has he got to show for his over 25 years in Power, say we compare him with efficient Hon. Peter Kenneth?

3) KANU Damu

4) Has no legacy

Anonymous said...

Now the SATAN/LAND/TAX/ BOB MARLEY

"Expert" wants to claim that he predicted the Yuan's 'divorce' from the Dollar.

We didnt have to read that in the Daily Nation bwana "prophet".

To us the President / the next president of Kenya is more important to us than the YUAN.

Or know you will want to show us how commodity prices will rise/fall from chinese exports and claim foresight.

Kwenda

Anonymous said...

@ Mwarang'ethe so the US$ is useless fiat currency while the lira & yuan are not?

Eric. said...

Mwarang'ethe said...

"To accuse Kalonzo of failing to "develop" his place is a punch below the belt bwana phil"..

"Is it then, that, the WONDERS of Mwau in Kilome, are a DEBT SLAVERY to other Kenyans"

Bwana Mwarang'ethe this is totally out of context and obviously a violation of academic norms for accuracy and intellectual honesty.

Any economist worth his salt who believes such an unreliable comment is almost certainly an ideologue interested in getting a result than the truth.

Anonymous said...

Any Kalonzo Musyoka supporter who can HONESTLY tell KK his ACHIEVEMENTS over 25 years and convince us not to LET GO OFF HIM in 2012.

I think this guy will perform the Japanese Tradition of 'Hara Kiri' if he doesn't make it come 2012.

Anonymous said...

Mr LUKA,

Defend your CHOSEN ONE! And remember KK aint SPARTA!

Come on Now twende Kazi.

Anonymous said...

A Mabel Mark in Nigeria



By FUNKE OSAE-BROWN in Lagos (
Posted Wednesday, October 13 2010 at 18:19

She was celebrated as Nigeria’s Amazon of banking until Sanusi Lamido Sanusi became the governor of the Central Bank of Nigeria (CBN).
And then things fell apart for her.

Cecilia Ibru, the most celebrated Nigerian lady banker was removed from the helm of affairs at Oceanic Bank, where her family owns the largest share, one cold August morning in 2009. Her crimes, as announced by the new CBN governor, WERE MANY and UNBELIEVABLE.

First, she was accused of using several fronts, the major one being her former nanny, Nanashetu Bedell, to siphon billions of naira from her bank. But as it has turned out, Nanashetu Bedell was not her only name. For siphoning purposes, she answered to different names.

However, when the big axe of the CBN fell on Cecilia Ibru’s Oceanic Bank, the list of bad debtors was released, including the infamous Nanashetu Bedell, whose names came up under different aliases with non-performing loans running into several billions of naira.

As CEO of Oceanic Bank, Cecilia’s approval limit was N1 billion. But she single-handedly approved loans of N3 billion and above without recourse to the bank’s board. She also moved £1.7 billion to the UK in one fell swoop.

The respect

These were some of the allegations which caused Cecilia her job and the respect she had hitherto commanded in the Nigerian banking industry.

But though her Oceanic Bank had a board, she was, for all practical purposes, the board. As she and her family owned no less than 30 per cent of the bank’s shares, meaning she could dictate how the affairs of the bank were run.

Anonymous said...

Martha Karua UK visit:

True that she is coming to UK to explain new constitution to Kenyans,to sell her party, for a Prayer meeting with Kenyans and to link with the diaspora?

who has the information

Anonymous said...

Return of unsecured loans as banks raid salaried employees

Rising confidence in the economy and reduced returns from short-term lending to government has renewed commercial banks’ rivalry in the consumer loans market, with the salaried worker becoming the most sought-after borrower.

Several big banks have, in the past two months, recruited armies of salespeople to sell unsecured loans to those with regular monthly incomes in what marks the return to 2007 when consumer lending topped income earners for banks.

The personal loans market was a no-go sector for lenders at the beginning of 2008 following the post-election violence in which thousands of people were uprooted from their work stations, ushering in two years of massive loan defaults and forcing banks to the secure grounds of government debt.

But with the economy on a rebound and returns on government securities below inflation rate, banks are developing a new appetite for the personal loans market.

“The economy is looking up and more people are taking loans to build houses or invest in business both in Kenya and across the region,” says Mr Martin Oduor-Otieno, the chief executive at KCB Group.

Increased lending

The economic recovery has stabilised the labour market and created new headroom for companies to resume staff hiring and improve salaries.

Consumer market researchers expect retail, manufacturing and real estate to benefit from increased lending to individuals, which accounted for 29.3 per cent of net lending to the private sector in the 12 months to June 2010, up from 20 per cent the previous year.

A recent survey by research firm Synovate showed confidence in the economy had risen to 69 per cent by mid March – the highest since January 2008 post-election violence – allowing business leaders to roll back cost cutting measures they had put in place at the peak of the global economic crisis in 2009 in favour of innovation and expansion into regional markets.

A survey by TNS, a consumer market research firm, showed consumer confidence index rose 21 points to 136 in August, from 115 in June and 120 in March 2010, helped by the enactment of a new Constitution in August.

Kenya’s economy has been growing steadily since the last quarter of 2009, with analysts predicting a five per cent annual GDP growth that should take the country closer to the seven per cent growth registered in 2007.

Growth plummeted to 1.7 per cent in 2008 as the post-poll chaos disrupted business, aggravated by the global economic crisis.

The green shoots of recovery emerged last year after the GDP expanded by a margin of 2.6 per cent and growth rose to a higher tempo in successive quarters.

“Personal loans deliver higher returns than any of the other lending options explaining the rush to secure it before others join in the fray,” said an analyst at Africa Alliance, who added that the steady economic resurgence witnessed since the end of last year has reversed risk aversion among big banks. “The way the personal unsecured loans are structured in terms of interest levied and the duration of repayment will be the key competitive factors,” the analyst at African Alliance said. Barclays Bank recently revamped its unsecured personal loan offering, levying interest rates of between 16 per cent and 20 per cent.

The bank is also offering borrowers easy repayment terms that lasts between one and four years for the Sh4 million maximum loan.

Equity Bank has secured a Sh15 billion deal with Safaricom and the Teachers Service Commission to help an estimated 250,000 teachers acquire laptops.

The laptop loans attract a 16 per cent interest on a reducing balance.

The bank’s chief executive, Dr James Mwangi, said the move was in line with Equity’s small loans and mass market model.

StanChart and Barclays have in recent months hired more sales agents to aggressively push the uptake of personal loans.

Data from the Central Bank indicate that lending to salaried workers is becoming a major income earner.

Anonymous said...

At least Kalonzo can do some DIRTY hugging like the Chilean prezzo is doing unlike the ogre would not touch such pumbaffs with a 10m pole. Luicy would even slap them back down the shaft.

A leader often needs to show the human face but what if all you have is bloated frog scare face? Just a thought

Mwarang'ethe said...

Return of unsecured loans as banks raid salaried employees

Rising confidence in the economy and reduced returns from short-term lending to government has renewed commercial banks’ rivalry in the consumer loans market, with the salaried worker becoming the most sought-after borrower.

xxxx

The scam works like this:

Fraud by a financial company/banks usually involves the company:

1) Growing like crazy (remember Enron?)

2) Making loans to people who are uncreditworthy, because they’ll agree to pay you more, and that’s how you grow rapidly. You can grow really fast if you loan to people who can’t you pay you back,and

3) Using extreme leverage.

This combination guarantees stratospheric initial profits during the expansion phase of the bubble.

But it guarantees a catastrophic subsequent failure when the bubble loses steam.

And collectively - if a lot of companies are playing this game - it produces extraordinary losses (more than all other forms of property crime combined), and a crash.

In other words, the companies intentionally make loans to people who will not be able to repay them, because - during an expanding bubble phase - they'll make huge sums of money.

Meanwhile, the top executives of these companies will make massive salaries and bonuses during the bubble (enough to live like kings even even if the companies go belly up after the bubble phase).

xxxx

And, while at it, are these BANKSTERS "loaning" money they have EARNED, or money CREATED FROM THIN AIR in their computers?

And, if they are creating "money" from thin air, which God gave them this monopoly to create money for us when they produce NOTHING, apart from EXTRACTIVE DEBTS?

Anonymous said...

An exercpt of a report by one of the dailies...am rolling on the floor with laughter....uuuiiii!!!

....And Mr Mbugua (Kamukunji MP) sensationally claimed the ICC probe was politically instigated and aimed at killing presidential ambitions of some leaders like Uhuru and Ruto.

"Even if Uhuru and Ruto are taken and detained at The Hague, we will still vote for them in 2012," he said

Im sure many on this blog would do exactly that.

Back to the post -Ati kalonzo for prezi where's VIKII to advice him to avoid the embarrasment and go for many of the other elective posts. at least his people have faith in him and will vote for him as they have done for many decades with nothing to show.

Anonymous said...

This "judas" crowd would have voted for kalonzo if odm had chosen him in 2007. And especially when told to vote that way by "that one". No questions would have been asked about his development record.

BTW why cant his development record be compared with that of "that one". They both want to be president.

Anonymous said...

Anon 11:59,
No one automatically becomes a darling of the media.You get in the headlines by having infuential editors in various media houses in your payroll.That is the game that Rao plays..!!

Anonymous said...

This is what affects me,all else you guys are yapping about is balderdash....!!

East African Breweries has increased prices of some of its popular beer brands by Sh5 and Sh10, barely a year after it revised them when the government raised taxes on alcoholic drinks.

The regional beer giant attributed the increase to “escalating costs of raw materials and utilities” but brewers’ revenues have also been hit by new regulations on alcohol advertising, sale and consumption that have cut sales.

The latest regulations, known as Mututho rules, have put curbs on selling points and drinking hours, reducing the amount of beer consumed and sobering up an industry that was high on sales.

According to prices it released on Thursday, EABL appeared to punish the middle to the high-end of its drinking market by selectively raising prices of its premium beers and some of its most popular brands.

Whether they are here in Kenya or at the Hague hainisaidii...!!

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