KenGen, with the tax credit, now trades at P/E of 7.1x and P/B of 0.2x with an ROE of 3.2% which compares unfavorably to Kenya Power’s P/E of 6.4x and P/B of 0.6x with an ROE of 9.2%

--Weak economic growth will lead to a slower growth in the consumption/electricity sales.Our per capita consumption of electricity is still low and the Kenyan economy is growing at below the average sub-saharan economic growth.
--Alot of marketing needs to be done to encourage to consume more power akin to the one been done by mobile phone companies encouraging subscribers to consume more internet bandwidth/bundles.
--280Mw of geothermal power is being brought online by September 2014 with the first 70mw coming on-board in December 2013.
The results are good and even with the debt kengen currently has (ksh.85b)it is still able to give dividends.A good stock to buy and hold

KenGen Plans to Raise $5.5 Billion to Fund Expansion

Kenya Electricity Generating Co., the East African nation’s biggest power producer, said it will raise $5.5 billion in debt and equity to more than double generating capacity over the next 40 months.

The company plans to generate 2,500 megawatts of additional capacity in that period, acting Chief Executive Officer Simon Ngure told reporters today in the capital, Nairobi. About 70 percent of the funds will come from development finance institutions, while the remainder will be sourced from equity including joint ventures, he said.

I totally agree with you, its time to start looking elsewhere for mkt, being dependent on KPLC will hurt KENGEN in the future...and, its time this company got new mgt

I had missed the all important $ sign. There goes the rights issue confirmation.