And they only propose to pay a dividend of 0.36 for the FY 2011; paltry to say the least.

Got the figure of 0.36 from the forecast FY2011 figures in the IM

I did my math and I think I know where the 0.36 is coming from.

FY 2010; they paid out Kshs 633M over 79M shares
therefore 8 bob per share

FY 2011; if they propose to maintain a 633M payout regardless of the increased number of shares, this will be 633m divided by 1735M shares therefore 0.36 per share

This would not make me happy!!!! They should increase the 633M by some of the preference dividends saved.

I had anticipated a one bob dividend; 8/8

Don't forget that this was after they had paid Govt 1.2b for the pref shares which I assume most of it will be channeled to the dividend pay off or else watatuona!
I don't know if these pref shares bothered you as much as did me. I used to get pissed every time I saw how much they were paying out.

It's rather evident that this rights issue will be oversubscribed big time. Such statement is good to discourage some 'investors' who are undecided. We'll be past the 7 BILLION by beginning of 2013

It is NOT my intention to discourage anyone from investing in the rights issue. Far be it from that. I am just bringing out some issues which I think ought to be discussed, since they have been put together to help us make our investment decision. And I think some of the information that KPLC has sent out is downright irresponsible, since in my view this information is incorrect. Now where are these Business Daily reporters when you need them???

I am going out on a limb and making the following assumptions:

1. PAT will continue growing at 15% per annum (the PAT figure for 2010-11 in the IM is projected to grow at 13.8%) over the 5 years to 2015. Hence, I expect PBT to be a lot higher than Mgt estimates as per the MD's presentation.

2. Dividend per share will continue to be paid at least at the same rate as it was prior to the Capital Restructuring i.e. a post-split equivalent of the 8/= before the split. I will therefore be expecting a 1/= dividend in 2010-11 if not more. This will not require the company to pay more than it has currently been paying on an absolute basis, even though the shares have increased. The Dividend payout ratio will also be a manageable 41% based on the Co's own projected PAT. This is lower than KenGen's current payout ratio.

Based on my assumptions above, all I am waiting for is to the rights to start trading, and I will be BUYING if the premium on the rights falls somewhat below the current differential between the share price and that for the rights. Can I hope for a bob? It would however have been nice (and less risky for me) if I could have gotten official clarification on the issues I am raising.

I prefer to buy the rights rather than the share for now, so bring it on.

If i heard him (CEO Njoroge)well, he said the Fixed dividend burden from the RPS will be eliminated and the 1.2B "saved" will be added into their Capital projects kitty and not end up in s/holders pockets as dividends!IMHO, KPLC will pay 0.36, or slightly more next year and not 1 bob!At today's closing price of 22.50, a 0.36 DPS will lead to a Div yield of 1.6%, a far cry from what KPLC investors have been getting!

If they give dividend 0.36 or slightly more next year & not one bob then share ptice will go down up to 16 bob.

@my 2 cents if they really wanted to save their profits K.P.L.C did not have to pay the 1.25 billion preference div because all they had to do was not declare an ordinary div but instead issue bonus shares like National Bank.

But since they did pay both out I see no reason why they should stop.. besides they used to pay a 51% ratio of the profits and if they pay out a 1 bob div per share the payout ratio will be only 41% of the projected earnings...

So what reason do they have for withholding the cash because we have given them 9.5billion after all???

@mwanahisa I seriously tried to look in the I.M where it projects 7billion P.B.T by 2015 but I did see that they project a P.B.T of 6.1 billion by end 2011...

And nowhere did I see 2011 D.P.S being projected at 0.36 but rather I saw the 2010 D.P.S quoted as 0.36 and we all know the reason for this...

So what's all the fuss about!!???