In His Facebook Account Timeline, The Former Nairobi Town Clerk and current aspirant for Nairobi Governor Seat; Philip Kisia highlighted the truth behind City Hall's Equity Loan deal.
His Facebook post read that;
'City hall has firmly clarified that the Kshs. 5 billion loan transaction from equity bank was above board and economically sensible, and that it saved the council money. In a paid advertisement in the media, the council highlighted reasons why the loan was sourced (The Standard Newspaper 8/10/12).
The council secured the loan to pay statutory debts to LAPTRUST, LAPFUND, NSSF and NHIF that were attracting a 36% interest which could soon render the council insolvent. It was thus necessary that the council look for a cheaper way to service the debts and hence approached 7 banks out of which only Equity bank responded positively. Equity bank offered the council the loan at an interest rate of 10% p.a.
However due to prevailing economic conditions, the Central Bank increased its base lending rate from 5.75% to 18% automatically causing Equity Bank to revise its lending rate to 24% as per banking regulations in Kenya. The 24% was still 12% cheaper than the 36% rate charged by statutory debtors. Contrary to negative speculation and adverse publicity, the loan was in the best interest of the council and those who initiated should not be vilified. '
Philip Kisia Has a dream to take Nairobi City to the Next Level. His past performance anywhere he has served has always been unquestionable. He always does things above board. Could He be the best Best bet for Nairobi's Governor Seat?
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