the market is not happy about the negative cashflow of kshs 7bilion

I watched the investigative piece on KTN prime yesterday. The piece was about Kenya power and the high bills they been posting to customers. What caught my ears is that out of the 6 million plus customers - a whooping 4 millions plus are on prepaid. Meaning that eventually plundering this cash cow will be next to impossible with technology making everything transparent.

Kenya power, TPSE, ARM, FTGH, Kapchorua, Liberty, ATLAS.

I sold HFCK and bought KCB early this year after having drinks with my broker who went on and on about how bullish she was with KCB. I bought KCB because of dividends and her(broker) advise. My strategy is dividends and a rich assets(think ARM factories, Kenya Power infrastructure, KCB cash, Kapchorua farms/forests etc).I also derive happiness when i go to my hotel(Mombasa Serena) on Friday evening to find a couple of governors,MPs, Senators and others spending lavishingly or seeing colleagues receiving bills from my utility(Kenya power) or even going to Naivas and head straight to the cosmetic section and ask the attendant whether she will recommend that i purchase Zoe shower gel or some other product etc.

I intend to buy Kengen and Safaricom(i dont care about price here) also as a retirement scheme.Offcourse i will continue buying Kenya power, TPS and Kapchorua and perhaps speculate more on FTGH and ARM. One thing i have learnt in my short years in this world is that accumulation = wealth. Huku Mombasa they have a saying that "Ukipanda pantosha, utavuna pankwisha. I want to be a situation where dividends are my subsistence and not the measly salary from my muhindi.

I believe ARM total liabilities(yaani deni yote) liabilties = 23 billions Vs. Factories,limestone etc worth 51 billions and 1 billion shares trading at NSE.(fanya hesabu hapo kaka). As for Kenya power, just like SGR the liabilities are guaranteed by Gok(yaani mimi na wewe). CS Rotich told Kenyans that 2018/2019 GoK will allocate 680 billions of the budget to pay madeni meaning that the 120 billions Kenya power owes can be paid one off if GoK so wishes. Alternatively, Kenya power can charge all its 6 millions customers an average of 1000bob (ideal situation)for 40 consecutive months to pay debt and maintain operations at the same time..Another ideal situation is where Kenya power is auctioned to the highest bidder....i would imagine the millions of kilometers it has in terms of copper cables alone is enough to offset a huge chunk of the debt.If you throw in transformers,nguzo za concrete, substations,lorries, toolboxes etc mu-shaina can pay upto 1 trillion kenyan shillings asubuhi na mapema without blinking an eye

We cannot all be billionaires,millionaires because some of us lack patience and understanding. Hii biashara sio complex as some of us would want everyone to believe.

If for example the law was changed(or katiba 2010 was followed to the later) and a competitor was allowed to supply electricity to say Nairobi county alone. How much will it cost to put up the infrastructure? What about for 24 out of 47 counties? How much will it cost to just install transmission lines alone?

Lets say that Kenya power was sold to a mo-shaina or mo-america or an Indian investor How much will say all the meters installed cost the buyer?

The only way to make money(become a billionaire) in the stock market is to identify rich assets selling cheap and accumulate as much as possible and hold for 50 years. This cannot be done by smart folk or everybody. It can only be done by the unasuming regular Joe next door who you sometime sneer with contempt when he is parking his jalopy.

I totally agree with you @Ericsson. As we progress to the future, things can only get better or get worse. However, it has been said that hope is not an investment strategy...only time can prove us right or wrong. If only GoK will stop looking at state corporations as cash cows to be milked anyhow(read to oil govt. machinery to safeguard incumbency etc)

TPSE and kapchorua hizo ziko chonjo.
Dont put everything in stocks.Weka 30% kwa bonds alafu jaribu real estate na 25%.Wacha stocks ikuwe 45%.
That way you protect yourself from shocks.
What i was asking was percentage allocation in each of your holdings.
Kwa mfano:
Tpse-30% kenya power-20% kapchorua-15% ftgh-13% Liberty-12%
Atlas- 10%

This new competition will be dangerous to kenya power.
https://www.businessdail...41034-sw7urmz/index.html

Filling the negative sh.7.7bn cash flow hole will be a tall order.
Add to that the amount they owe Kengen.

Someone said Gok is waiting for eurobond 2 cash and will give some to kplc.They didnt pay for street lighting program which was a campaign propaganda.