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Kenya Power - what's the latest?
Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Evey day i hear a complain about power blackout and wonder how does KPLC expect to make money if they are not delivering the product. Effieciency is very key here..why is power from countries around Kenya cheaper even when we are importing it. I think there is for sure somethinh wrong here and I think Ruto is saying put your house in order and come out with a proposal that talks of profitability not sealing holes due to ineffiecincy whick kenyans having been paying for thoughout the years
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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mkonomtupu wrote:i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public are you telling us that if KP& Darkness Countrywide will collapse if they don't effect the rate increase?? a fallacy!! the power firm has been declaring billions of shillings of profit over the last couple of years. ...besides, the presence of a safe alone does not signify that there is money inside...
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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mkonomtupu wrote:i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public WR is spot on, it may sound like a road side declaration, but the guy is right about the inefficiencies at KPLC. Example, KenGen generates 140 MW @Kipevu 3 and we pay for it but because KPLC/KETRACO delayed in laying out the transmission lines or connecting consumers at the coast, the power goes to waste as it cannot be deployed, now sample that. Have you ever reviewed the tarrif setting for this companies, they are practically compensated fro all their costs and are even shielded against market forces (e.g. Forex exchange) so they should not be making losses, but no, KPLC probably looses as much as 30% of the energy it pays for through grid losses and another 20% through blackouts. KPLC risks are not touched by any reinsurer so there again you can imagine the insurance underwriting costs they have to pay. This company really needs to step up, it has never transitioned from a parastatal to the private sector. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Obi 1 Kanobi wrote:mkonomtupu wrote:i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public WR is spot on, it may sound like a road side declaration, but the guy is right about the inefficiencies at KPLC. Example, KenGen generates 140 MW @Kipevu 3 and we pay for it but because KPLC/KETRACO delayed in laying out the transmission lines or connecting consumers at the coast, the power goes to waste as it cannot be deployed, now sample that. Have you ever reviewed the tarrif setting for this companies, they are practically compensated fro all their costs and are even shielded against market forces (e.g. Forex exchange) so they should not be making losses, but no, KPLC probably looses as much as 30% of the energy it pays for through grid losses and another 20% through blackouts. KPLC risks are not touched by any reinsurer so there again you can imagine the insurance underwriting costs they have to pay. This company really needs to step up, it has never transitioned from a parastatal to the private sector. "The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do." Time will tell...
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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The corrupt gichuru,moi top management cronies still work for kplc upto today.it will never deliver. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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mlennyma wrote:The corrupt gichuru,moi top management cronies still work for kplc upto today.it will never deliver. Exactly. Its nothing to do with rates. Its all about corruption and unwillingness of the administration to rein in! Example, at the Mathare and Huruma Slums in Nairobi, almost 75p.c of the houses have KPLC electricity that each pay 100/- monthly to protected cartels. (fyi i grew up there and moved out 12 years ago). So, instead of KPLC ensuring they collect the money themselves at a special rate instead of this criminals, they hike rates to the law abiding customers and eat with the IPPs. They should learn from the water sector failures, you make the rates unaffordable, guys tamper with your systems. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Veteran Joined: 12/4/2009 Posts: 1,982 Location: matano manne
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Kaigangio wrote:mkonomtupu wrote:i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public are you telling us that if KP& Darkness Countrywide will collapse if they don't effect the rate increase?? a fallacy!! the power firm has been declaring billions of shillings of profit over the last couple of years. @Mkonoempty, Look at the BIGGER picture and not your selfish dividends on performance of the KPLC share. How do you explain how imported power from Ethiopia could be 10 times cheaper? Until the darkness company discovers "Who moved their cheese" they will clueless for a long time.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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@dunkang,this guys are bribed to come and install power in your house,in lunga lunga,sinai,mukuru,reuben,njenga and nearly all slums you can think tapping power is legal business,with the cartel and kplc staff sharing the loot...the staff alert the cartel when they will visit the sites...pathetic if they expect to get money. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,342 Location: Nairobi
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dunkang wrote:mlennyma wrote:The corrupt gichuru,moi top management cronies still work for kplc upto today.it will never deliver. Exactly. Its nothing to do with rates. Its all about corruption and unwillingness of the administration to rein in! Example, at the Mathare and Huruma Slums in Nairobi, almost 75p.c of the houses have KPLC electricity that each pay 100/- monthly to protected cartels. (fyi i grew up there and moved out 12 years ago). So, instead of KPLC ensuring they collect the money themselves at a special rate instead of this criminals, they hike rates to the law abiding customers and eat with the IPPs. They should learn from the water sector failures, you make the rates unaffordable, guys tamper with your systems. What do you want KPLC to do? They cannot go into the slums without police protection. And I don't mean the 'kawaida' police but GSU. The government [security forces] need to be involved in ensuring vandalism is stamped out. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,342 Location: Nairobi
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Rahatupu wrote:Kaigangio wrote:mkonomtupu wrote:i read what the Ruto had to say and I was horrified for a moment. Has the guy read the contracts that Kenya power has entered into with the independent power producers? Has he seen the contracts with Turkana wind power project? That's what you call a road side declaration even Moi would not go that low. Does he realise just a few years back Kenya power was on the brink of insolvency yet he says "we cannot subsidise Kenya Power operations forever". The GoK had to do a balance sheet clean up to get this damn thing on the road to recovery. I think they should delist this company and the govt should keep it's inefficient parastatals to itself instead of duping the investing public are you telling us that if KP& Darkness Countrywide will collapse if they don't effect the rate increase?? a fallacy!! the power firm has been declaring billions of shillings of profit over the last couple of years. @Mkonoempty, Look at the BIGGER picture and not your selfish dividends on performance of the KPLC share. How do you explain how imported power from Ethiopia could be 10 times cheaper? Until the darkness company discovers "Who moved their cheese" they will clueless for a long time. Are you sure that electricity prices in Ethiopia is 10% of what KPLC charges? BTW, KPLC is a distributor which pays about 8cents [or more] to many producers e.g. IPPs. A country may choose to subsidize electricity as Egypt does or have huge natural resources like Ethiopia does. Kenya has 2 major rivers but compared to the Blue Nile [Ethiopia] or Nile [Egypt] are but piddling streams. We have no coal, LNG or oil [production] thus little access to cheap thermal power. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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