@sparkly, realise that your reasons for Kengen also hold true for KPLC with the advantage that KPLC seems to have fewer competitors as compared to Kengen.

Also KPLC is a B2C end-user facing entity. Is it just me or do these businesses seem to have larger impact than backend providers in Kenya?

And then the icing of diversification, what with KPLC leasing fiber and all...

Kenya's power sector has a huge potential. 1300MW installed capacity is a big joke by international standards(South Africa 43,000MW). Which serious industry will set up with that kind of capacity.I was actually surprised that the PM was asking Toyota to put up a plant in Kenya.
KENGEN is looking at installed capacity of 2300MW by 2013 and 3000MW by 2018 which is a low target. This is a company that needs serious foreign investment if it has to keep up with demand. I would buy and accumulate kengen for any price below 12.50 (fair value). This is my retirement stock

@sparkly
why would you invest in kengen as opposed to KPLC??? all future benefits accruing to kengen will multiplied much more to KPLC...

KPLC is a pure monopoly whereas kengen faces steep competition from IPP's who seem to be growing.. but all these IPP's supply to one party KPLC...

KPLC expects to be disributing 10,000MW by 2020 while kengen expects to be producing 4,000MW in the same period...

KPLC will not face higher operating expenses as GOK has set up KETRACO to take up construction of new transmission the lines which KPLC will manage...

Kenya's projected demand is 2000MW by 2014 so 300MW wind power will only meet part of the deficit. The project has to await the construction of the transmission line between Ethiopia and Kenya.

The price movement on Kengen stock is much better than KLPC which is always on average stuck at Kshs 150. KPLC should consider a share split.

Guru any idea of the share split ratio. I introduced both Kengen and KPLC during the 2006 IPO in almost equal portions and well kengen has not disappointed. KPLC has solid fundamentals i agree but Kengen offers a lot more excitement in terms of new technology, new power plants, corporate strategy. KPLC telling consumers to use less electricity, allowing government agencies to take up its core mandate looks to me a weak strategy. Analogy Kengen is like the brewer(EABL) and KPLC like a big pub franchise in town. It make more sense to own the brewer.