One of the things I like about David Ohana at KK is his measured approach to expansion. Slow but sure. He got rid of under-performing assets including Tanzania and I hope he does the same for Ethiopia. Ethiopia isn't loss-making but I'd rather have the cash from its sale. Ohana doesn't want to double his sales for the sake of it but he wants to increase PROFITABLE sales. KK has deliberately stopped/reduced supplying poor payers eg KQ.
KK is increasing its higher margin retail stations and LPG sales. In addition, plans to open a new lubricant blending plant are in place for the production of high margin lubes.
Another CEO, Nick Hutchinson, is expanding Unga's capacity slowly but surely. During the AGM, he said Unga will invest in a new Wheat Plant in phases over 3 years so as to manage the debt load prudently i.e. he wants Unga's cashflow (not just borrowings) to pay for the expansion. I expect a cap on dividends from Unga for 3 years but that is a-OK in my books as it obviates the need for a Rights Issue.
Unga has beefed up its Ugandan subsidiary and Kenyan units with "managers" to push development & sales of new products before the new mill is installed. Unga has also reduced its exposure to slow-paying customers/distributors including two (unnamed) supermarket chains.
What Naikuni did was believe his own bull***t. They bought too many planes for markets/routes that were not developed. Furthermore, the hedges that Mbugua, who I believe is a crook, entered into were suspect and saddled KQ with huge bills to pay. If KQ had gone with a slow replacement policy of the 767s with the 787s then KQ might have been OK.
Good luck to KQ but for "investment" purposes I shall stick to Unga and KK.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett