One should look at this company as a very long term investment. As someone put it, this should be a 20 - 30 year plan.

I am surprised that pension schemes are not going for it.

Pension schemes exist to generate competitive returns for members during their working life. In as much as Kengen looks like it will make money eventually, the funding of their perpetual investment program disillusions pension schemes. Rather stick with firms that can generate decent tangible returns year on year rather than one which will provide a huge tangible return from year N out there in the future. Not all members will retire after year N. There are some retiring next year and in 5 years time. Not sure how much Kengen will have lost or made by then, but I am certain KCB is likely to have consistently made a decent return up until then. Kengen need to fix their financing and start operating like a business answerable to a diverse set of players and NOT like a project management company answerable to Vision 2030 and GK.

Which they said they are being offered at 1%

So who will consume all the power? We are yet to feed ourselves and medicate and treat ourselves to a decent standard. The economy is growing at 3- 5 % at best and is unlikely to move beyond that over the next 3 years, so what is all this capacity for?

@murchr our deficit is 350MW at the moment. Which 1260MW peak demand against 1290MW installed capacity and the 30% reserve we need to build up. All the IPP's have 10-15 years irrevocable power purchase agreements. They are no going away soon. Demand is growing at 8%. Why produce all this power for who? Vision/ Mirage 2030 perhaps?

Power rationing are from the decrepit transmission lines and commercial theft. KPLC is fixing that by replacing some lines and build substations to distribute the consumer load across many substations so that one line shutting down doesn't shut everyone. At the moment Mombasa is producing excess power which can't be evacuated owing to an old transmission line from Mombasa to nairobi.

Power is expensive because of the sources and not because it is scarce. Geothermal is equally expensive in our basket of energy falling just below thermal. Hydro is the cheapest followed by wind and baggase. IPP's have 10,15,20 year PPA's so their input in the base load will always be there and together with geothermal will keep prices up. Download KPLC annual report and check the rates.

Egypt don't need our power, they have natural gas which they use and the rest they supply Israel, lebanon na hao wengine.