wazua Sat, May 9, 2026
Welcome Guest Search | Active Topics | Log In

251 Pages«<9192939495>»
Madness at the NSE
Options
Previous Topic · Next Topic
kawi254
#921 Posted : Friday, August 28, 2015 7:59:49 AM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
hisah wrote:
sparkly wrote:
hisah wrote:
Long KPLC short Kengen. Simple. I expect the latter to post very ugly forex losses.


@Hisah aren't the Forex costs passed through to KPLC and ultimately to the consumer? Kengen gets a flat tariff for power sold to the distributor.

Those FX loans that kengen has is what I'm looking at.



Kenya Power buys energy from IPPs & Kengen in USD. Forex losses are passed on to the consumer.
Back to top
  |
Cornelius Vanderbilt
#922 Posted : Friday, August 28, 2015 8:52:39 AM
Rank: Member

Joined: 8/15/2015
Posts: 817
kawi254 wrote:
hisah wrote:
sparkly wrote:
hisah wrote:
Long KPLC short Kengen. Simple. I expect the latter to post very ugly forex losses.


@Hisah aren't the Forex costs passed through to KPLC and ultimately to the consumer? Kengen gets a flat tariff for power sold to the distributor.

Those FX loans that kengen has is what I'm looking at.



Kenya Power buys energy from IPPs & Kengen in USD. Forex losses are passed on to the consumer.




haiya ?
Back to top
  |
Ericsson
#923 Posted : Friday, August 28, 2015 9:38:52 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,820
Location: NAIROBI
@kawi254;
Kengen and Kenya power have loans denominated in foreign currency such as USD,Yen and Euro.
Our currency has weakened versus the 3 major currencies I have mentioned; hence the anticipated forex losses which they try hedging by passing them to consumers
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Back to top
WWW
  |
sparkly
#924 Posted : Friday, August 28, 2015 10:27:05 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
kawi254 wrote:
hisah wrote:
sparkly wrote:
hisah wrote:
Long KPLC short Kengen. Simple. I expect the latter to post very ugly forex losses.


@Hisah aren't the Forex costs passed through to KPLC and ultimately to the consumer? Kengen gets a flat tariff for power sold to the distributor.

Those FX loans that kengen has is what I'm looking at.



Kenya Power buys energy from IPPs & Kengen in USD. Forex losses are passed on to the consumer.


Good people of the blue section, will someone clear the air whether exchange losses on Kengen FOREX loans are passed through to the consumer or borne by Kengen.

I was of the opinion that they are passed through. Very interested in the answer for obvious reasons.
Life is short. Live passionately.
Back to top
  |
Pesa Nane
#925 Posted : Friday, August 28, 2015 12:35:03 PM
Rank: Elder

Joined: 5/25/2012
Posts: 4,105
Location: 08c
sparkly wrote:
kawi254 wrote:
hisah wrote:
sparkly wrote:
hisah wrote:
Long KPLC short Kengen. Simple. I expect the latter to post very ugly forex losses.


@Hisah aren't the Forex costs passed through to KPLC and ultimately to the consumer? Kengen gets a flat tariff for power sold to the distributor.

Those FX loans that kengen has is what I'm looking at.



Kenya Power buys energy from IPPs & Kengen in USD. Forex losses are passed on to the consumer.


Good people of the blue section, will someone clear the air whether exchange losses on Kengen FOREX loans are passed through to the consumer or borne by Kengen.

I was of the opinion that they are passed through. Very interested in the answer for obvious reasons.

Forex losses on the loans are absorbed by the KP & Kengen shareholders.
Forex losses on long-term purchase agreements (diesel, Power purchase components etc) are passed on to the customers.
I could be wrong though.
Pesa Nane plans to be shilingi when he grows up.
Back to top
  |
kawi254
#926 Posted : Friday, August 28, 2015 2:05:37 PM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi

From last KenGen 2014 Annual Report page 138

19. RECOVERABLE FOREIGN EXCHANGE ADJUSTMENT
(a) Recoverable foreign exchange adjustment relates to unrealised exchange differences on foreign denominated borrowings
recoverable from Kenya Power when realised. The Power Purchase Agreement (“PPA”) with Kenya Power, allows the company
to bill and recover all realised foreign currency fluctuations relative to the base rates allowed by the PPA
Back to top
  |
sparkly
#927 Posted : Friday, August 28, 2015 2:39:59 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
kawi254 wrote:

From last KenGen 2014 Annual Report page 138

19. RECOVERABLE FOREIGN EXCHANGE ADJUSTMENT
(a) Recoverable foreign exchange adjustment relates to unrealised exchange differences on foreign denominated borrowings
recoverable from Kenya Power when realised. The Power Purchase Agreement (“PPA”) with Kenya Power, allows the company
to bill and recover all realised foreign currency fluctuations relative to the base rates allowed by the PPA


Thanks @kawi. I guess this settles it.
Life is short. Live passionately.
Back to top
  |
Gatheuzi
#928 Posted : Friday, August 28, 2015 7:54:28 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
Ericsson wrote:
Stock markets rally worldwide.
Chinese pension funds to pump 2 trillion yuan to the stock mkt.
Banks to provide a further 1.3 trillion yuans in loans to institutional investors to buy shares in the Chinese stock mkt.
Governments that care about investors in the stock mkt.
Here in Kenya uko pekee yako

It is good to let the market forces determine prices. If that market crashes, pensioners may eat a humble pie while banks will obviously book some NPLs or get forced to renegotiate terms.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
Back to top
  |
Kahuna
#929 Posted : Tuesday, September 01, 2015 9:42:13 AM
Rank: New-farer

Joined: 8/6/2015
Posts: 26
Anyone to explain current phenomenon at the market ? Many counters seem to be well into the green. Is it the usual correction before they tumble again after a few days ? Your thoughts on this will be highly appreciated !
Back to top
  |
maka
#930 Posted : Tuesday, September 01, 2015 9:57:56 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
Kahuna wrote:
Anyone to explain current phenomenon at the market ? Many counters seem to be well into the green. Is it the usual correction before they tumble again after a few days ? Your thoughts on this will be highly appreciated !


Question is,is it sustainable?
possunt quia posse videntur
Back to top
  |
251 Pages«<9192939495>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.