Recently, President Uhuru Kenyatta announced a phased reopening of the country to the public, citing major moves such as resumption of international flights from August 1 as well as the lifting of international travel restrictions. This foresees a positive benefit to the economy, allowing businesses to carry out trading across borders. However, it still poses a major threat to our personal health considering the daily increase in Covid-19 patients, with the recent number of 447 cases recorded in a single day! This really puts us in a tight space considering the nation's urge to pursue their daily activities normally.
Photo Credit: Ashurst.com
Despite all of this, people have still gone back to the streets to kick-start their after-pandemic income plans as reports have shown that the number of businesses registered has been on the rise in the past couple of weeks.
Progressively, in the week ending June 19, 2020, business names registered were 2,206, a slight increase from the 1,953 registered in the previous week. In that same period, there were 1,141 private companies registered, also a slight increase from the 1,027 registered in the previous week. ~Carol Musyoka, Business Daily.
This proves that businesses are striving to come back to life. A strong financial plan? Yes, they do have it. A ready source of income? No, they don't. Thus the move to go to banks for credit, or rather, what is referred to as loans.
The banks are in this to make a lot of profit in the end, and this is how. When an individual or an institution (company) decides to take a loan, they basically do it for the main purpose of growth. Be it in the services they provide, goods they manufacture of even products they process. Once they attain their required "growth", they get more returns and continuously increase their provision capacity. For example, increase in agricultural produce in a factory leads to increase in products on supermarket shelves. This leads to a growing economy. And more money for the business equals more money for banks, who are basically the main lenders here.
Most banks in Kenya retracted their dividend payments to investors in the months of May and June, which practically means that they saved their money for a later date, like this one. This gives them the ability to give out more loans to their customers and businesses.
Banks such as Kenya Commercial Bank, Equity Bank, Co-operative Bank and Absa Bank are open to invest in with low share-prices of Sh 34.00, Sh 32.25, Sh 11.85, Sh 11.85 and Sh 9.50 respectively. Right now would be a good time to invest in them.
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