The shares (being sold) in the hotel belong to GoK. The buyers are connected. So GoK selling to connected folks on the cheap. Nothing new.

Alright... they are working to sort out the situation. And they seem positive about 2H. Also the case vs KPRL will 'restart' in 3Q 2013 [election petitions delays]

I pray for you too

1H break-even coz KK has complained about the financing costs. 2H profitable with lower debts/loans and lower interest rates.

Point is if Kenol Kobil didn't have fuel you would be feeling the heat at the pump price. The last time dear old Nyoike tried getting them of their KPC and Ullage, mwananchi had to pay 10 bob premium for fuel. They simply paid total and oil libya 85 bob for 80 bob diesel and repriced the same to 90 bob resulting in every OMC repricing to 90 bob. We all know how that ended. Look Kenol controls the network outside nairobi by a huge difference. You can't wish them away. The media reports are smear campaigns and sometimes you can't rule out Kenol itself airing them out. Specifically the KPRL issues to get government attention I suspect. a substantial amount of fuel is trucked. KPC infrastructure is very limited. Kenol also has no destructive squables with KPC at the moment and can pump fuel as and when.

For every litre KK bypasses they save 10 shillings in refining fees. So provided they can maintain volumes at their stations frankly speaking to shareholders they can continue shadow boxing KPRL. KPC is already shipping KK's fuel to inland depots.

Its certainly obvious that no OMC can survive outside the OTS. The marketshare of KK is too big to be satisfied by these "brief case dealers" albeit at a premium. If you are kicked out of the OTS, you are no different from the small timers looking for fuel becomes an everyday affair, not easy if you have to satisfy 8,000M3 everyday!And in this business even Ksh0.50 could mean your profitability.
To KK holders, its back in the OTS so no worries!

Uhhh...no?! Pump prices are controlled by ERC. If a firm's production costs exceed the allowable pump price range, they have to either absorb the costs (at a loss) or withhold selling fuel (also at a loss due to financing costs & storage costs) or stop collecting fuel from the refinery (also at a cost since the money falls due ANYWAY once you've confirmed your order). When faced with these tough choices, most firms would probably sell fuel at a loss, sell non-core assets, optimize internal operating costs and hope for the best.

...... far away