It could also work right here in KE.. Ours is a blessed country with a few rotten elements

Your argument is that diversification is good for Kengen. You give an example of GE where diversification has worked well.

My points are as follows:

1. Kengen has not exhausted its core function of investing in power generation. Some argue that Kenya is oversupplied with power. However neighbouring countries are not. As a shareholder, I will be happy if Kengen invests in a power plant in Somalia, Congo, South Sudan, Uganda etc

2. GE is a purely for profit first world conglomerate while Kengen is a third world majority government owned utility company. GE diversification projects are evaluated for ROI and optimal allocation of capital. Kengen projects on the other hand will end up as money draining white elephants. There will be no accountability by management. Peer for comparison for Kengen is Mumias not GE.

3. As a Kengen shareholder, the diversification projects don't inspire confidence. In my opinion, instead of allocating capital in tenderprising projects, they should invest in core power generation, pay down debt or just pay us dividends. That said, I am on the lookout to exit at an appropriate price.

Spot on!

Rink?

Synchronization of Olkaria V to the grid is ongoing. Then the Commercial Tests. Testing and commissioning is an ongoing process. By July 1st, as commissioning continue, dispatch to the grid will continue

Have they got a PPA with KPLC for the 720MW? There’s less demand than current supply for existing production!

720MW is pure porojo that corporate executives feed their shareholders. They have extensive steam reservoir of this capacity but They will not be doing power plant in the forseable future ,not even six years. Even Olkaria 1 unit 6 (80MW) that is being done next to the existing Olkaria 1 is proving a hard sell. There will be no new projects in the near future. Olkaria V (153MW) this year and Olkaria 1 Unit 6 (80MW) in 2020 will be the only projects in the forseable future... unless otherwise

[quote=Ericsson]Kengen to sell power from Olkaria to South Sudan

http://www.xinhuanet.com...9-07/02/c_138193143.htm[/quote]

The kind of news that shareholders like to hear, not water bottling and solar panel manufacture.

Logistic cost of ferying drinking water to Turkwell, Masinga, Kipevu, Olkaria for some ~3000 employees are too great to make this profitable.

As @KaunganaDoDo says, all this is porojo that corporate executives feed. KenGen also signed to sell 30 MW to Rwanda some years back when Kagame was around but KETRACO hasn't yet even finished the Olkaria-lesos transmission line to Kisumu. Before the whole region is interlinked with power all this selling power to South Sudan is porojo.