The problem is not monopoly or even performance. It's alignment of management with shareholder interests. And the market has not been fooled. Below rights price since 2010. Currently at 2011 lows, very low dividend yield.

Remember when I said hold for now .they are entering another market taking advantage of the available infrastructure .
Kenya Power joining Internet business

Remember when I said hold for now .they are entering another market taking advantage of the available infrastructure .
Kenya Power joining Internet business

That KShs 111B loan is serious cause for worry. Besides banks I would only trust Safcom with such debt. Don't think other companies are as efficient, insulated from shocks and have the cash flow generation might of safcom to cope with such debt. Something will have have to give on Kengen and KPLC. Already it is happening on Kengen with conversion of debt to equity.

@Kausha you are ahead of yourself here. Electricity penetration is way too low in Kenya. Aside from the urban centers, rural Kenya is virtually unconnected.

You it's also not easy to substitute industrial power use with solar power packs.

I applaud KPLC's entry into the ISP business for it can provide competition to Zuku & Safaricom. Nevertheless, unlike the (almost) monopoly they have in electricity distribution, look at the competition:

Safaricom
Zuku
Orange/Helios/Telkom
Airtel
And many other smaller players

Bottomline: It's a positive move for KPLC but it will not translate into huge revenues immediately and the profits will take some time to show up.

Sometimes I read your posts and have to check the author, coz its exactly what I would have written. KPLC and kengen are too heavily indebted, some can argue with equity to debt ratio, but such large debt on those 2 is a recipe for disaster, we saw what happened with KQ and large debt....it could also happen here. And that's what scared me off these 2 companies 2-3 years ago, because of that debt appetite and unnecessarily speedy expansion plans. Top this cocktail of with who the major shareholder is and I'm running to hills

@sparkly
Rural electrification is a loss making entity.It is being done as a government policy.
People in the rural areas use the power for lighting and charging phones which is very low.
They don't have sophisticated equipment that utilise huge amounts of power.
What we need are industries like cement factories,smelting plants like Kaluworks and Mabati Rolling Mills to consume the extra power from KENGEN and enable KPLC to repay the debts and be profitable.
Electricity consumption per capita needs to be grown

Freudian slips...innuendo laden spell-check

Finally!!! Someone who understands why the west got rid of Gaddafi!!!

The dream and model Gaddafi had for Africa would have totally upset the status quo. Look at the way foreign companies including oil companies were made to operate in Libya! No Parasitic agreements allowed. First question, how does this deal benefit Libya.

People should read about the Gaddafi Libya! Ridiculously low taxes, free education to University level, Government pays for you University fees abroad if you want to do something not offered in Libya, working welfare system, Cheques (Yes, you actually get a cheque!!!) from oil proceeds etc. Libyans will never get that life back! Not the next two generations at least!!!