kyt wrote:mkonotupu, if the controlls were not there, u could be paying 300 a litre, those hedge loses would have been lumped, to you. do you want a scenario like KPLC, where a company raises tariffs with no justification? socialist kitu gani???
There is a formula used by KPLC. A little research would do wonders but like many Kenyans you want the easy way out.
The formula was set up years ago when oil prices were $40/bbl & KShs 62/$. Oil is now $115/bbl & KShs 85/$.
Unfortunately, Kenya does not have huge hydropower potential. Kenyans breed like rabbits. 6mn in 1963 & an estimated 44mn in 2012. The forests (water catchment areas) have decimated from 12% cover in 1963 to 2-4% today.
All these leads to an increase in electricity generation using Thermal Power aka oil fuel. Kenya does not use coal to generate electricity.
Yes, the government slacked off for many, many years though it's Kenyans who elected the same crooks over & over again. In 1992 & 1997, many Kenyans stupidly voted in daniel moi instead of coalescing behind a single (opposition) presidential candidate.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett