@murchr. Why is kenya power funding kengen???

I thought the two split . One a distributor the other a generator.
I don't get it.

I dont why but am the deal's fan. He's combined/backed his hunch with reasonable amounts of research. Afterall we are in the market to make money not to contest who has more valid facts. @the deal,maintain the belief because trying to please everyone is a sign of mediocrity.

Sincere apologies for earlier decorum failings. However I just think it's wrong for KPLC to go to ERC and ask for a tariff raise to cover current operating costs then within a week come out clean with borrowing plans. Njoro should have waited for a few months and come clean. It was obvious KPLC were going to use debt to fix the grid. This was off the earlier capital reorganization which was done to create debt capacity (by increasing equity). Thereafter a keen eye on free cashflows and profitability suggested that KPLC could only service debt of about 10B comfortably.

On Kengen's ABS, certainly it will cost them not less than 14% -16% to collect this cash. Remember the ABS is a stand alone start up SPV and will require a premium unless Kengen commits cash from existing Geothermal plants (which then sets back equity investors). Kengen will also struggle to raise this instrument abroad. Kenya would have to first raise a sovereign bond before Kengen's success can be measured. The debt uptake at Kengen to me is shocking. Off the PIBO's 25Billion we are yet to see significant cashflows. Those who have seen ARM grow can attest. You raise cement capacity and revenues go up substantially. Haven't see this in Kengen which worries me and suggests to me that Management may not be very efficient in allocation of capital.

12 bob handle reclaimed...the ascend to 15-17 bob has begun.

@Kausha is one big liar...Kenya Power imported 19GWh or 0.5% of its power from Uganda Electricity Transmission Company in the 6 month to December.