Kausha wrote:@aguy...been ranting about this, while @deal and co want to slit my throat. I just think it's outright stupid for government to make it KPLC's oh sorry consumers responsibility to regenerate the grid! Either government sets up a sinking fund or grants KPLC some MoE budget to regenerate the grid or alternatively make it Ketraco's work.
Again enter Exim bank of China and more no minimal economic effects for Kenya. For those who have experience with Exim banks esp the chinese one we know very well even the 'sululu' that digs the trench to bury the cable will come from china. The only thing we will provide will be MANUAL labor. If it was a government funded project, EA Cables and other domestic cable companies would have a great opportunity to grow their businesses and create jobs. Meanwhile our young and upcoming engineers would have a first crack at the jobs in these project. However now we expect Li Xiang or Wing Wong to do this job working for China 'hauwui' while we consumers will repay the loans! Sad day for Kenya. We need to regenerate the grid but not with Chinese loans!
A very important criteria to me is the debt and aggressiveness a company demonstrates. History doesn't favour such radical actions. Yes they may pull it off. however the stock becomes that much more risky and less attractive.
At times like these its easy not to see (or question) the challenges and early signs that may become clearer later.
I'm not saying its doom and gloom for KENG n KPLC however, i question the appetite for debt and aggressive speed in expanding. because i think a slower (less leveraged) expansion would have still provided enough power judging the projected increase in demand.
The investor's chief problem - and even his worst enemy - is likely to be himself