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Kenya Power HY 2019
Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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kmucheke wrote:Save Kenya Power from collapse by Jaindi Kisero in BD. Quote:The previous board was mainly composed of cronies of influential politicians. Still, the problems at Kenya Power are so deeply ingrained.
The priority of priorities in Kenya Power is addressing balance sheet issues. The shareholders must to something very urgently to clean the company’s balance sheet.
Kenya Power is the only power off-taker for both KenGen and for the independent power producers. When it continues to ail, the ramifications are felt across the board.
Indeed, part of the reason Kenya Power is where it is today is because it — for political reasons — finds it difficult to operate on the basis of full-cost recovery. Failure to subsidise the social tariff has been a big impediment.
The new team can scale up drastically in reducing transmission losses, in reducing theft of electricity by consumers, in collecting debts and in curtailing corruption in procurement.
A great deal can be achieved by eliminating fiefdoms in the ranks of the workforce left by the out-going management and board and in re-introducing clear lines of command in the company. The list of what needs to be done to improve the company’s fortunes is long indeed.
...inject capital to recapitalise the company and consider forging an alliance with a strategic partner that can bring technical expertise and management.
In the long term we must debate whether it really makes sense for Kenya Power and other strategic commercial State corporations to remain listed on the stock exchange.
A monopoly that rakes in more than Sh130 billion a year in revenues, is broke and is now tottering dangerously.
If the government does not take drastic measures to bail out Kenya Power from its current situation, the company will collapse. All the above issues are not new and the board has its work cut out. However there still remains the problem of external political interference. The board is a passive one,which is least involved. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Kenya power has disconnected power to the whole of Makongeni. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
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Interesting interview from Bernard Ngugi. He does inspire confidence. There are clearly concerted efforts to turn the utility around. https://www.youtube.com/watch?v=y3SYYUsflsY
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Rank: Member Joined: 3/16/2019 Posts: 313
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I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing. Even where there is no corruption KP officials should be found culpable for negligence. This is why power bills will always be high and KP will never stop hemorrhaging money. Power utility firms should avoid costly trespass suitsQuote:The number of court fines slapped on Kenya Power and other public utility firms for trespassing on private land are becoming far too many and costly, adding unnecessary burden for the taxpayer.
In the latest case, the High Court on Monday ordered Kenya Power to pay a couple Sh40 million for trespassing into their land in Ngong area and erecting high power cables.
This is only one of the numerous rulings recently made against Kenya Power for trespass There are other suits still pending in court.
Unfortunately, such illegal actions do not just end with Kenya Power. The Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification Authority (REA) have also faced court suits and fines for trespass.
Clearly this should be a cause of worry because a lot of taxpayer money continues to go down the drain in needless court fines and legal fees despite the existence of legal guidelines on how the utility firms should handle projects traversing private property.
Section 171 and 173 of the Energy Act expressly requires utility firms to seek consent from land owners before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.
Utility firms therefore have no excuse to continue contravening the law and causing unnecessary burden on the taxpayer through court fines and fees.
Rogue officials engaging in illegal action such as trespassing on private land should be reprimanded as a deterrent to others who may be tempted to do the same.
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Rank: Member Joined: 7/1/2009 Posts: 272
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kmucheke wrote:I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing.Even where there is no corruption KP officials should be found culpable for negligence. This is why power bills will always be high and KP will never stop hemorrhaging money. Power utility firms should avoid costly trespass suitsQuote:The number of court fines slapped on Kenya Power and other public utility firms for trespassing on private land are becoming far too many and costly, adding unnecessary burden for the taxpayer.
In the latest case, the High Court on Monday ordered Kenya Power to pay a couple Sh40 million for trespassing into their land in Ngong area and erecting high power cables.
This is only one of the numerous rulings recently made against Kenya Power for trespass There are other suits still pending in court.
Unfortunately, such illegal actions do not just end with Kenya Power. The Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification Authority (REA) have also faced court suits and fines for trespass.
Clearly this should be a cause of worry because a lot of taxpayer money continues to go down the drain in needless court fines and legal fees despite the existence of legal guidelines on how the utility firms should handle projects traversing private property.
Section 171 and 173 of the Energy Act expressly requires utility firms to seek consent from land owners before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.
Utility firms therefore have no excuse to continue contravening the law and causing unnecessary burden on the taxpayer through court fines and fees.
Rogue officials engaging in illegal action such as trespassing on private land should be reprimanded as a deterrent to others who may be tempted to do the same. @kmucheke That's a very unfortunate mindset of blaming the victim; you seem to believe government & parastatal officials never overstep/abuse their powers - Lands, KRA, CBK, KEBS, Police, Judiciary etc. CBK recently did just that...should we blame Safaricom/Banks?
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Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
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EPRA has increased the recoverable system losses from 14.9% to 19.9% (+500bps) retrospectively from 1st July 2020.
This comes after GoK gave the loss making utility a one year moratorium on loan repayments (on-lent).
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Extraterrestrial wrote:EPRA has increased the recoverable system losses from 14.9% to 19.9% (+500bps) retrospectively from 1st July 2020.
This comes after GoK gave the loss making utility a one year moratorium on loan repayments (on-lent). Will it help in encouraging demand and bringing manufacturing back to the country. Over taxing a small base instead of coming up with policies that encourage heavy consumers to take up the excess power. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 3/16/2019 Posts: 313
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Monk wrote:kmucheke wrote:I don't believe Kenya Power trespasses private land without being aware. It is most likely the "victims" are in cahoots with some insiders to make a killing.Even where there is no corruption KP officials should be found culpable for negligence. This is why power bills will always be high and KP will never stop haemorrhaging money. Power utility firms should avoid costly trespass suitsQuote:The number of court fines slapped on Kenya Power and other public utility firms for trespassing on private land are becoming far too many and costly, adding unnecessary burden for the taxpayer.
In the latest case, the High Court on Monday ordered Kenya Power to pay a couple Sh40 million for trespassing into their land in Ngong area and erecting high power cables.
This is only one of the numerous rulings recently made against Kenya Power for trespass There are other suits still pending in court.
Unfortunately, such illegal actions do not just end with Kenya Power. The Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification Authority (REA) have also faced court suits and fines for trespass.
Clearly this should be a cause of worry because a lot of taxpayer money continues to go down the drain in needless court fines and legal fees despite the existence of legal guidelines on how the utility firms should handle projects traversing private property.
Section 171 and 173 of the Energy Act expressly requires utility firms to seek consent from land owners before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.
Utility firms therefore have no excuse to continue contravening the law and causing unnecessary burden on the taxpayer through court fines and fees.
Rogue officials engaging in illegal action such as trespassing on private land should be reprimanded as a deterrent to others who may be tempted to do the same. @kmucheke That's a very unfortunate mindset of blaming the victim; you seem to believe government & parastatal officials never overstep/abuse their powers - Lands, KRA, CBK, KEBS, Police, Judiciary etc. CBK recently did just that...should we blame Safaricom/Banks? @Monk Apologies if i've come across as blaming genuine victims. Note that I've used "victims" in quotes to differentiate from genuine victims who have suffered at the hands of KP and deserve compensation. Also note my second paragraph asking for punishment on errant officials as prescribed by the law irrespective of which institution they come from. My aim was to highlight a trend that is well documented on undeserving individuals being compensated using public funds at the expense of taxpayers. Take SGR compensation that landed NLC officials in court.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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https://www.businessdail...0310-cky121z/index.html
Kenya Power is facing increased burden of paying for idle electricity as power generators increase production to five-month high amid reduced consumption by homes and businesses in the wake of Covid-19. Latest figures from the Energy and Petroleum Regulatory Authority (Epra) shows that power producers such as KenGen increased their supply to Kenya Power to 980.33 million kilowatt-hours (kWh) in July. The supply is a 7.4 percent rise from 912.89 million kWh and is the highest since January output of 986.08 million kWh, piling pressure on Kenya Power given the subdued demand. Kenya Power has since April been unable to sell about 24 percent of the power or 214 million kWh it bought from generators like KenGen. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 8/1/2019 Posts: 106
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KaunganaDoDo wrote:Swenani wrote:Elephant Man wrote:So if it all doom and gloom for KPLC, is this not a threat to Kengen, KPLC being their largest customer? No, it's not doom. Obiero being my role model, I'm hoping to buy more KPLC shares in the next three months anticipatinng to have 100% return. Watch and learn Please dont buy anymore now until 2019/20 Financials are out...you will hurt yourself When do they come out?
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