My thinking with Kenya Power's liquidity crisis e.g not able to pay KenGen 6B withing agreed credit period:

1. For the last mile project Kenya Power has used it's internal funds to fund it as probably Govt has not transferred promised cash and had to be accelerated to deliver votes.

2. Kenya Power ha used internal funds for the 'Stima mtaani' project where it is putting up street lights all over the country's major towns and Govt has paid promised funds.

3. The Govt/counties probably hasn't paid the Electricity used up in the streetlights project

4. last few months Kenya Power been changing meter numbers in a very disorganized way which is affecting payments for postpaid bills.

There must be some subsidy GOK will pay KPLC for the 50% off-peak tariff reduction. I see no other way for KPLC to make a profit or even break even because the tariff price is below market price for Kwh unit. And the way GOK works it will delay that subsidy so not looking good for Kenya Power and in turn KenGen who will not get paid by Kenya Power.

During Moi era the govt did the same thing and KPLC was technically bankrupt trading at 7 bob. ERC was established to stop political interference but the more things change the more they remain the same.

Current liabilities is kshs 75,258,000,000.Finance cost was kshs 5,651,000,000.These means they cant pay the ksh 6.4 billion in lumpsum.It will have to be added under non current liabilities which is kshs 196,433,000,000 and be paid in installments.

Chairman will still be a political appointee.