If ever the phrase “sticking to your lane” was most appropriate, then it is to Mutahi Ngunyi. When it rains it pours, and having been forced to delete a controversial tweet about Bottoms-up seems to be only one of Mutahi Ngunyi’s problems.
Ngunyi is no doubt an incredible political analyst and governance expert. However, through perhaps a misguided urge, he decided to try his hand at auditing. In all fairness, his basic breakdown of the Equity Bank situation appeared to make sense to non-economists. He wondered how Equity, which had a profit of 20 Billion last year could easily dish out a 15 Billion loan after a simple phone call from DP Ruto. However, when the real economists began breaking down how such arrangements work, Mutahi Ngunyi who is known to be quite interactive on his TL, and always engages followers in a to and fro, was nowhere to be seen.
His tweet read,
@MutahiNgunyi My Fren @kipmurkomen and Ruto’s GEMA wheelbarrow
, QUESTION:In 2020, Equity Bank’s NET PROFIT was Ksh 20.1Billion. Then using one phone call from your BOSS, Equity gave Ksh #15Billion or 75% of its profits to one MUHINDI from Turkey. POSSIBLE? Not all Hustlers are STUPID.
Quick to respond was Kiprotich Ngetich who expounded on the issue, explaining that a bank’s ability to loan out money isn’t based on its profits but its balance sheet in terms of the deposits made by customers. He tweeted,
@kipmurkomen and @OleItumbu, the lending capacity of banks is not based on profits but financial http://soundness.As of 2019 Equity Banks balance sheet was worth KES 673.7 Billion. Equity is among top 1000 banks in the world with $848 million tier 1 Capital as of 2018. stop exposing your moronity.
Soon after, a user by the name Philosopher added on to Kiprotich’s sentiments, writing,
Ero propesa. My name is Ole Philosopher. From my manyatta in Suswa, I know Equity Bank loans total to over 450 billion.
He then went ahead to post a page of the bank’s annual financial report which said just as much.
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