Help Baby Emmanuel


A Guest Post By SamKitots

Three weeks ago, Sarah’s cousin Mwikali had come to the prime of her pregnancy duration. Her boyfriend had run off upon hearing that she was pregnant and she had to go back to her father’s house. This was one of the hardest choices she had to make as this relationship was her way out of the desolate family. Mwikali’s mum had long since died and her dad was very depressed for a while. Her brothers, school dropouts, were also staying in the house with her dad. None of them was really making headway with the chang’aa brewing. Desolation had struck the family and a baby was on the way.

Mwikali was insistent on making things work. She knew that this wasn’t going to be a family curse and decided that keeping the baby and bringing the child up in a positively enabling environment would be the way to go. Sarah always wanted to have such courage. She watched as Mwikali went through the motions of expecting a baby, as she dealt with the public ridicule and the shame that came with being sent back home to the village from whence she came. Time came and Sarah was called to the big city for a job. She wanted to be there to support Mwikali, but Mwikali encouraged her to go for this starter job. “When I can travel with the baby, and your find a place to stay, I will come and visit you, maybe we will create a better world for this child”

Sarah hesitantly left and made her way to her new job as a house help.

It was a beautiful Sunday morning, Sarah was getting ready to go for her usual day off and that’s when she got the call from her dad. Mwikali had gone into labour early that morning.

The family was caught by surprise and they called a nearby family for assistance. There was a new mother in the house and she came out to help Mwikali push through the delivery. A baby boy was born. Innocent as ever, the child was healthy. Mwikali was happy. After a few minutes she started bleeding. They could not figure out why and needed to rush Mwikali to the nearest hospital which was over twenty kilometers away. The nearest vehicle was five kilometers away. By the time a vehicle came, Mwikali had lost a lot of blood and had passed out. Mwikali was pronounced dead upon arrival at the hospital. She had not even had a chance to name the child.

The above story is a true account of real events. However, one thing is for sure, God has brought this situation for us to rally together and assist this child. A mere Kshs. 600 could feed this baby for a week. Clothes in the village are hard to come by. Should you wish to assist make life easier for this child, feel free to get in-touch with me. My wife and I have committed to supporting the child until he is weaned. Your support will be highly appreciated.

Donations can be dropped at Kingdom Business Network along Kabarnet Road, off Ngong road, behind Uchumi Hyper. Label the donation c/o @SamKitots and I will get them. Monetary donations can be sent to M-pesa number 0721 411 461. Any assistance will be highly appreciated.

THE DAY’S

Appreciation: Sam for taking care of the baby who is now three weeks old and is called Emmanuel.

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The Six Women to Avoid


She don’t believe in shootin’ stars,
but she believe in shoes & cars.
Wood floors in the new apartment,
couture from the store’s department

Kanye West

Have you ever stopped to wonder why single people have the best advice on relationships? Well, it’s simple actually. You start by wondering then you get to a point and just decide to stop (wondering). So the other day, I was busy doing nothing and basically minding my own damn business as I usually do when out of nowhere, my intelligent friend ascofu comes up with a post advising ladies not to date certain people who have characteristics similar to us. And for a while, I felt betrayed. Here is someone playing for your team but advising the opponents how best to beat your best defender etcetra etcetra. The wonderful captain that I am, I will try and help my team beat the opponents, though I must admit it will be difficult not only because of the secrets ascofu has shared but also because of the fact that I have never played for the other team. Gentlemen, I present the six women to avoid.

 

The Gold Digger aka Kardashian

If there was any justice in the world, we would have accomplished these two things: eliminated this species from the human race and eliminate idiots who need me to explain how bad this species is. For the sake of our great grand children who will hopefully grace the face of this planet when this species will have joined the dinosaurs and unwealthy MPs in the list of extinct things, I will briefly explain what they are. They are omnivorous, which means they eat everything. If they could, they would eat your money, but they do not since they have better use for it. You will pay all her bills, all her parents bills and her last born brother’s fees, sometimes without even knowing. The bad part is that you will not be the only man she is gold digging. The worst part is that she might be spending your money with another lazy idiot somewhere who has not job and lives a better life than you. Be careful Turkana folks, they are coming to oil dig you and I do not mean literally.

 

The Cinderella Girl

She spends half of her day watching those alejandro bull craps and expects a grown @$$ African man to do those idiotic things in the name of crap she believes is love. The only prince charming on a white horse I have heard of is on that Dido song. If you get yourself this lady, it does not matter how you treat her. The benchmark is way too high for any living man. These are the girls who expect you to fly from where you work in Mombasa to bring her an umbrella in her office in Nairobi since it is raining. She expects you to love neither of these things: sports, alcohol and women. How in this day and age is it possible to not love at least one of those three things?

 

The Slut

So you go out clubbing and you meet a girl for the first time and chipo her. It does not matter how good she was (in bedminton or in person), she is not girlfriend material. Do not, ever, call her unless you are asking what you are to do with her passport that she accidentally left at your place. In short, if she holds the record of the shortest time between meeting and bedding, she is a no-no. Period!

 

The Super Hot Girl

Now, I know you are confused, but let me explain. There are hot girls you can date and then there are the super hot girls who know they can replace you in a day if you screw up. DO NOT DATE THE SUPER HOT ONES! A girl should be a little bit insecure but if she knows she has no or little competition, you may be in trouble. That aside, here are two main reasons why the super hot girl is not suitable for you:

  • A super hot girl is like a trophy you win after a very tough tournament. (think of it like the champions league). The thing is that soon, you have to defend your trophy in the next tournament and we know that even the current Barcelona side with their sexy football has not been able to defend the Champions league trophy. My point is that you will be competing with every Tom, Dick and Harry for the attention of the girl and most of the daring ones will probably have more to offer the girl than you.
  • Just as marriage is the main course of divorce, relationships are the main causes of break ups. When you break up, generally, whether you are a girl or a guy, you need to upgrade, ie get a better looking person. Trust me, there is nothing as wonderful as bumping into your ex a month after breaking up in the arms of another guy/girl who is hotter than they ever will be. The problem with dating a super hot girl is that upgrading will definitely take time spotting, let alone getting to displace someone who has claim to the trophy. Woe unto you if you are the one meeting your ex in the arms of another guy.

 

The Married Woman

It is okay to try date a single girl. Heck, if you get a chance at dating a super hot girl, disregard my earlier advice and go for it. It is okay to try and slice a girl from that dude you hate for landing the girl of your dreams. But do not date a married woman! It shows how pathetic you are in that you find it cool to share her with someone else. It is so disgusting, I have to go puke before I continue with this post.

 

The Drunkard and Chain Smoker

I am not saying a girl is not supposed to drink but if a drinking competition was to be done between her and your relatives currently alive (to your fourth cousins), and she would win hands down, then, she is not in your league. My personal view is that girls should not smoke as much as guys should not watch soaps. If things go well, but mostly badly, she may carry your baby and we all know what cigarettes do to the body.

 

The list is not exhaustive. There are many girls not to date, like the celebs that are on pulse or zuqka every week; sugar mommies, your brothers’ and boys’ girlfriends and exes etc. I am sure you know many more, kindly share in the comments section and you will receive a reward of nothing.

 

THE DAY’S

Quote: The reason why women will never start proposing is because, the moment they get on their knees men will start unzipping – nir4shah.

Guest Post: Asymmetric Information in the Banking Sector: How adverse selection & moral hazard affect our banking system


By Munene Laiboni

Q: Which is one sure way to kill a rat but its hideout can’t be traced? A: Set the whole house on fire ~ my high school math teacher”

The economy of any nation – Our OPEC-Member-in-waiting included – is heavily dependent on the banking sector to provide the needed capital so as to keep its economic activity abuzz. It’s common knowledge that capital can either be raised in equity markets or debt markets. Nevertheless, Kenyans have always had a thing for debt and the little confidence that equity had started accumulating has been largely eroded (partly due our bourse’s terrible performance in recent times). Many of our commercial banks posted super-profits inasmuch as our economy is still recovering from effects of last year’s drought and the downward spiral of the shilling. One might ask, “how did the banks make all that money?” Well, the question is really straightforward – the interest rates on loans were at record high levels last year as a direct result of the intervention of the regulator toward the end of last year to save the ailing shilling. However, there are other factors independent of Central Bank Intervention which might as well affect the interest rates charged on individual’s loans. In this paper, I will discuss how information asymmetry is a key determinant of interest rates and how it lead to adverse selection and moral hazard – two possible occurrences which are clearly not pleasant to bankers.

Information Asymmetry:

Information asymmetry is asymmetric distribution of material information which could be influential in decision making by both parties to the loan agreement. Suppose an entrepreneur comes up with a business idea, and is looking to raise capital for the actualization of his dreams. Ordinarily, he will approach a bank with his business plan in hand but although the bank will try to do due diligence before disbursing the loan, the investor will always have has a better understanding of the prospective returns and risks of the business than the lender. Asymmetric information creates problems in the banking sector both before the transaction is closed (adverse selection) and after the transaction has been closed (moral hazard)

Adverse Selection – Occurs when bad credit risks (firms which have poor investment channels and high inherent risks) become more probable to acquire loans than good credit risks (firms with better investment opportunities and less inherent risks).

Because of information asymmetry, lenders tend to have a hard time differentiating between good credit risks and bad credit risks, and demand a blanket premium over and above the existing rates as compensation for the risk arising out of the inability to determine who indeed should be lent to. This causes the good firms to stop borrowing from such a lender because the high rates have devalued their strong credit history while the bad firms become very eager to borrow from such a lender because they know for sure that judging by the strength of their cash-flows, they should be charged an even higher interest rate. As a result, lenders end up with a loan portfolio comprising almost entirely of bad credit risks.

Moral hazard – Moral hazard occurs after the money has been disbursed to the borrower and it arises out of the fact that the borrower may have an incentive to breach the loan covenants by investing in ‘immoral projects’ which are unacceptable in the eyes of the borrower because inasmuch as they have a high possibility of gain to the borrower, they also have a high possibility of failure which will have the most detrimental effect on the lender. Information asymmetry once again causes moral hazard because of the lender’s lack of knowledge about the borrower’s activities. Moral hazard also occurs as a result of high enforcement costs of the debt covenants. In this instance, the lender simply decides that its not worth the effort to keep on chasing after borrowers and have them invest the money in stipulated projects – giving them a freeway to invest in high risk ventures.

Remedies to Information Asymmetry:

Now that we have seen how information asymmetry has detrimental effects on a nation’s banking sector, let’s look at some ways through which we can reduce this problem in our banking sector.

Credit Referencing – In the developed world, any firm which wishes to sell its debt must ranked by credit referencing firms (the main ones being American firms – Standard & Poor’s, Moody’s, and Fitch ratings) Firms are ranked by the strength of their repayment ability anywhere in a range which varies from the esteemed AAA rating to the lowest rating (high yield/junk rating). Judging by the credit score, a lender is able to approximate the probability of default of any single borrower and charge a rate of interest which is proportionate to the innate risk evident in a borrower’s enterprise. In Kenya, credit referencing is yet to take root and as at writing of this article, I am not aware of any firm which offers this crucial service in Nairobi. I think it’s the high time we embraced credit referencing as a way of reducing information asymmetry.

Data Sharing – Due to the secrecy which has continued to shroud our banking system, at times there are red flags all over about serial defaulters but banks miss them simply because they consider immaterial information about their customers as classified. Thus, a person may become unable to repay a loan on a bad investment idea (which he won’t drop because of his singlemindedness) and get his property auctioned but walk over to a different bank and secure financing for the same bad project, probably using a different product. If our bank’s IT systems could get partially integrated, this is a problem which can be quite easily eliminated.

Government Participation – Due to the vulnerability and corruption in our administration systems, there has been instances of forgery of collateral documents such as title deeds. The land records at Ardhi House are, for example, manual and computerization of land registration in this country is long overdue. There has been instances in which several title deeds have been issued on a single piece of land, and I do not want to imagine what would happen if each and every one of those holders would approach his bank for a loan with his title deed as collateral and default on the same.

Improved Loan Underwriting – In some commercial banks, loan underwriters are basically data entry clerks. They simply key in information from an application form without paying due attention to material facts which could be evident right on the application form. Underwriting is the entry point of risk in any financial services firm and some risks could be avoided if this initial process could be carried out meticulously. There is always an essence of evaluating the proposed project’s cash generation potential, its SWOT analysis and its history before acceptance.

THE DAY’S

Gratitude to my good friend Munene Laiboni for this informative guest post.

About the Author: Munene Laiboni is a financial advisor. You can find more of his work here and you can follow him on twitter munenelaiboni.