KBA CEO CHAT - Financial Strategies for Households

CEO | Charles Mudiwa, Stanbic Bank, MD
MONTH | May 2020
Chat Admin
Good morning everyone!
Chat Admin
Isn't it such a beautiful day already:-) Thank you for logging in early and joining the chat early!
Chat Admin
Our topic today is Financial Strategies for Households and our host today is Mr. Charles Mudiwa, Stanbic Bank, MD. We look forward to an engaging session with you all.
Ted Opiyo
Good Morning! Happy to be here.
Chat Admin
Good morning Ted! Glad you could join us
Ivy Namdiero
Good morning
Chat Admin
Good morning Ivy! Very happy to have you here today
CEPHAS MUTAVI
Good morning
Chat Admin
I see quite more people have joined the chat already. Graylords, Lillian, Linda, Sillas, Cephas, Hesborn; happy to have you. Karibuni!
Chat Admin
As we await the official start at 10am, you may start posting your questions or thoughts around the topic of the day (Financial Strategies for Households) so that we can begin promptly at 10 a.m.
Fredrick Juma
Good morning. Nice to be here today.
Wandiri Gitogo
Good morning everyone, eager to learn about measures households can take to mitigate COVID19
David Indeje
Good morning ladies and gents
David Indeje
Q: I was asked to forget to ask this questions: The issue of retirement planning in the pandemic
nuru mugambi
Hi morning
Chat Admin
Fredrick, Wandiri, David and Nuru...Good morning. Glad you could join the chat and we look forward to your thoughts on the topic Financial Strategies for Households'
Ted Opiyo
Good Morning Charles, I'm a CEO of a Technology startup and during this time it has become more apparent to invest more into the business to accelerate growth and beat our competition who are operating inefficient business models. I have raised capital in the form of land and apartment buildings from family members. How can a family business leverage their real estate to turn around cash from a bank in a sustainable way to cater for SG&A and supply chain costs?
maina NJUGUNA
Good morning.
maina NJUGUNA
We have had a VAT rate drop and a humongous fuel price drop. Why are the prices of the essential commodities still at the same level before the said drops?
Fredrick Juma
Question: What is the role of shopkeepers in helping households during this pandemic?
David Indeje
Q2: Coronavirus crisis is causing financial stress for many Kenyans because some have lost their jobs, others are experiencing salary cuts as a result, many cannot afford to pay bills, rents mortgages. What is the first thing one needs to prioritize in such cases?
maina NJUGUNA
Q2: What has Stanbic Kenya done in terms of restructuring loans for their customers during these Covid19 times?
Oscar Magu
Most measures taken by banks to shield customers from the negative effects of the pandemic expire on June 30th, are we expecting an extension ?
Kevin Masara
Good morning to you sir. Glad to be in
Alex Mugo
Checking in....
Joan Kaara
Glad to be in too
Martin Mwanthi
Good morning. I'm in. looking forward to insightful conversation.
Chat Admin
Ladies and gentlemen, please welcome our host Mr. Charles Mudiwa, Stanbic Bank, MD
Kevin Ojiambo
Hi, glad to be here. Welcome Mr. Charles.
Martin Mwanthi
Welcome Mr. Mudiwa
JUDY MBUTHIA
Welcome Charles.
Fredrick Juma
Good morning sir. You are welcome
Kevin Njoroge
Welcome Charles.
Thomas Ndiritu
Hello, my two questions are
Charles Mudiwa
Good morning. Welcome all to the chat. It has been 60 days since the first case of COVID-19 in the country and we have taken measures to protect ourselves. it is time now for us to think of how to proceed to the future.
Kevin Ojiambo
Mr. Charles, what's your advice for someone who has liquid cash at the moment..To invest or hold on till the pandemic is over.
Linda Muhoro
Good morning Sir, Q1. Small and medium based businesses have greatly been affected by COVID. Is the bank reviewing its lending criteria based (hopefully to be more lenient) in consideration of the now fluid incomes flows?
David Indeje
Karibu sana
Marystella Barasa
Thank you
Wandiri Gitogo
Welcome Mr.Mudiwa, looking forward to having an interactive session
Thomas Ndiritu
We are in interesting times and many households are in capital conservation mode, however are there Investment opportunities right now and what to consider?
maina NJUGUNA
What investment options would advise someone to venture into during these crisis days and would that be short, medium or long term investments?
Catherine Tonui
What investment options would advise someone to venture into during these crisis days and would that be short, medium or long term investments?
Charles Mudiwa
We have all had different experiences and financial impact as individuals on our pockets. Today we will focus on how banks have helped individuals to mitigate the impact of COVID-19. We recognize that COVID-19 is slowly becoming endemic.
Thomas Ndiritu
tied to the first question, what is the current market outlook and what is your opinion of the near term and longer term outlook?
Marystella Barasa
Interested in a business venture I can get engaged in during this period
Charles Mudiwa
Good morning, Ted. Thank you for your question and congratulations for raising the equity. There are number of products available in the industry where you can get support for supply chain funding, including invoice discounting and trade finance. Your real estate can provide security for the funding that you require.
Martin Mwanthi
Mr. Charles, as we focus on how bank have helped individuals mitigate the impact of covid-19, i tend to think banks have adopted a risk-averse method, in that they are cagey on advancing facilities to individuals especially on the aspect of personal loans. Have the banks revised their lending criteria to a lenient one where individuals can qualify for loans without the need of collateral?
Dorine Ng'eny
Following keenly ,hope to get insights on business sustainability amid the Covid-19
Ted Opiyo
Thanks Charles!
ALLAN KIVUVA
Good morning CEO Charles,
Charles Mudiwa
Good morning, Wandiri? I recommend the following measures: 1. Prepare a family budget 2. Conserve as much cash as you can. 3. Minimize all unnecessary expenditure. 4. Ask your bank to reschedule all loans that you have. 5. Protect all your income sources. 6. Ensure you have retrenchment cover. 7. Invest in secure assets.
Andrew Muleke
Morning Mr. Charles on that point No. 7. In the current state of our economy what are some of the secure assets one can consider?
ALLAN KIVUVA
Morning Mr. Charles, Kindly advise on the current potential and/or volatility of the CAPITAL MARKETS as an investment venture during this Covid 19 era.
Charles Mudiwa
Hello David? As you plan to retire, consider the following: 1. Know your financial freedom number, which is the minimum amount of money you need to survive when you retire. 2. Build up savings that generate that financial freedom number. 3. Invest in secure assets. 4. Create a routine activity that will keep you busy. 5. Think of something that you can give back to the community, either as services or volunteering or skill etc.
SOLONKA KITILA
Hello Mr. Charles, considering the current financial state in the country due to the pandemic, what are some of the regulations you have set to safeguard existence of some Banks after this pandemic
Charles Mudiwa
Hi Fred, Shopkeepers play an important intermediary role, keeping the food supply chain working as most of us are working from home with limited availability of restaurants; home cooking is becoming the norm. As result we are demanding more supplies from shops and it important that shops are well stocked to meet this demand. So shopkeepers need to ensure their shops are fully stocked and ensure that they maintain all the health safety measures.
Charles Mudiwa
Hi Kevin. Thanks for joining the chat. I hope you are finding the session valuable.
Charles Mudiwa
Hi Maina, Stanbic has restructured Sh. 30 billion worth of loans for our customers by giving them repayment holidays, interest rate moratoriums, modifications of their facilities , or complete restructuring.
Charles Mudiwa
Hi Linda, I fully understand the plight of SMEs. In this respect, banks have offered the businesses loan restructures and payment moratoriums. In addition to loans, banks have also reduced charges like balance enquiries and waived charges on digital payments through PesaLink.
Anthony Irari
For employed individuals who's jobs are becoming more and more risky as the pandemic catches on. What are some of the measures you would advice they take to safeguard themselves?
Charles Mudiwa
Thank you Thomas for the question. Yes, there are a number of investments that you can consider. Firstly, ensure the investments you take up are safe, and secondly that they can be liquidated. So I would consider Government stocks. Stock exchange will pick up, so you can buy it at the low side now. There are some good dollar savings accounts available in the market. For there is long-term buyers' market for property investment which you can consider.
JUDY MBUTHIA
Hi,
JUDY MBUTHIA
Hi Charles,
Paul Gichanga
How are you? Was VAT tax reduction really necessary considering its impact will not be felt at the ground level. According to me they should have used that revenue to increase government source of income in this tough times.
LILIAN NGOYA
Hi Charles,
Charles Mudiwa
Hi Martin. Banks are actively looking at how they can assist clients during this period. They also have a responsibility toward their depositors by ensuring that the money they lend is paid back. As a result, they have to balance between supporting borrowers and guaranteeing returns to depositors. Most personal loans do not require collateral.
Martin Mwanthi
Thanks Charles. I'm learning
JUDY MBUTHIA
my question is for the young employees who have just joined the employment industry what would you advise them in terms of 1. job security 2. investment options 3.entrepreneurship.
Charles Mudiwa
Hello Dorine. Thank you for following. The critical thing is sustainability through COVID-19 is to conserve case, identify good costs and remove bad costs, be agile and innovative and seize any new opportunities that come.
Charles Mudiwa
Thank you, Andrew. Some of the secure assets one can consider include : Government stock, savings in a strong financial institution, or you can consider gold and for the long-term, property.
Andrew Muleke
Thank you Charles.
Charles Mudiwa
Hi Solonka. The Central Bank of Kenya has a robust framework to ensure financial stability during this period.
hijaca hijaca
Sir, before you end the session i would appricate if the below question from Ms Solonka is responded to; Mr. Charles, considering the current financial state in the country due to the pandemic, what are some of the regulations you have set to safeguard existence of some Banks after this pandemic.
Charles Mudiwa
Good day, Allan. Yes, we have seen volatility in the market and given that COVID-19 is still evolving, no one can guarantee stability at this point. However, as we all start to understand the crisis, we will start to see stability returning.
Kevin Ojiambo
Currently by limiting movements one finds to have some extra cash which is maybe 10-20k.Govt. securities would require like 100k. What are some other avenues to put the savings into good use?Thank you.
Mike Lijoodi
What happens incase a customer passes on due to this pandemic, will the insurance payoff the customers loan?
David Indeje
Any more details on the loans that Stanbic Kenya has restructured will be appreciated
Martin Mwanthi
Mr Charles, there are some of us asking about viable investment opportunities. You've not mentioned horticulture. I think one can do some farming as a business to ensure food security in the country during this pandemic. Coz people must feed anyway.
Charles Mudiwa
Hi Hijaca, some of the regulations CBK has in place include: monitoring banks' capital, liquidity (cash), non-performing loans, and management of the banks.
Kevin Njoroge
Hi Charles, Do banks have debt consolidation options?
Charles Mudiwa
Thank you Kevin for your question. Not all Government securities need Sh. 100,000. There are options available that meet your pocket such as M-Akiba.
Kevin Ojiambo
Thank you Charles, the session has been so helpful. Esp. on household budgeting, limiting expenses and M-Akiba option.Stay safe.
Charles Mudiwa
Hello, Martin. It is true that food is required and , in fact, during the East African Head of States meeting recently one of the issues highlighted was on how to ensure food production continues unhindered.
hijaca hijaca
Thank you Sir on all the responses.
Charles Mudiwa
Hi Kevin. Yes, banks have debt consolidation options.
Chat Admin
Hi Everyone, our session is almost coming to a close, we shall be winding up in the next 10 minutes
Kevin Njoroge
Thank you Charles.
David Indeje
Chat Admin, leo ongeza muda, kuna maswali yanasubiri majibu tafadhali
maina NJUGUNA
Mr. Charles, this week we have seen banks release their quarterly results and their rescheduled loans portfolio, will your restructured Kes30B+ loans affect your bank's quarterly results?
Charles Mudiwa
Thank you everyone and we wish you all safety. Importantly let us plan how to manage our finances post-COVID-19. As Charles Darwin said, "In a crisis, it is not the strongest nor the most intelligent that would survive but the most adaptive". Let us all adapt and survive.
Limo Taboi
Has CBK changed provisioning rules to accommodate Corona restructuring?
Martin Mwanthi
Thank Charles for the insights. I have learned alot.
Kevin Masara
Thanks CEO Charles, My name is Kevin Masara. I'm happy to have participated in the session being my first time. Was enquiring any advice to young people who have no engagement during this perilous moments. I'm also seeking an opportunity for internship, volunteer just to acquire skills. I'm an Accountant having a degree. Thank you sir.
Chat Admin
Thank you everyone for your participation and your enthusiasm in this session. A big thank you to our host Mr. Charles Mudiwa for his insights and for a very engaging session
Kevin Ojiambo
Hi Kevin Masara, we have an opportunity for finance internship. Kindly visit Kwal website and apply online.
Kevin Masara
Thank you sir. Much humbled. My contact is 0721567833. Email, masarahkevin@gmail.com. please if possible help
Chat Admin
For all who joined late, please note you can follow today's conversation on the chat transcript that contains today's full chat session as well as past chat sessions and catch up with the insights shared.
Chat Admin
..this is available in the chat archives https://chat.kba.co.ke/index.php?r=chat/archives
Chat Admin
We wish you a brilliant day and weekend ahead. Keep safe and be blessed. We shall close the chat room shortly.
Kevin Masara
Thank you so much Admin. Much Happy to have participated. Wish to be a banker soon.
Habil Olaka
Thank you, Charles, for that enlightening discussion. The subject area is wide and the conversations will continue. Thank you all.
Kevin Masara
Much thankful sir Kevin Ojiambo. Thanks for your referral. I will apply it. GOD Bless you.
Chat Admin
You're welcome Kevin. Best wishes.
Chat Admin
@Habil, thank you so much for joining the chat and for making the time. Indeed the conversation will continue