Today there was some heavy buying from single buyers. Individuals scooping up 300,000+ shares at a go. Insider information has leaked or heavy speculation.....I saw the same thing in that September - October period before the results were released.

I was waiting for this thread to be extremely active after the release of the results - whether the sentiments are positive or negative but alas! Silence chungu mzima!

Kulikoni???

I feel like that rights issue is so unnecessary.
1st, They have already lined up a 38bn loan from World Bank denominated in ksh which should help with balancing the cashflow.
2nd, the market cap is still too small for a significant capital raise. It needs to be at +100bn for it to raise the kind of money that will make an impact without heavy dilution to those who won't participate.
3rd, if they are able to retain margins in the next tariff review then the operating cashflows should be enough for sustenance, expansion and paying down debts.

Still doesn't make it a viable path when the current market cap is ksh 13bn. The best way they can improve the equity position is by retaining earnings, esp with a P/E of less than 1.
The profitability for a year should be in the region of Ksh18 - 20bn, 1.5x the market cap. I am all for utilizing the current resources optimally before jumping in for more external funding. FY25 & F26 will be the toughest on the cashflows in terms of borrowing maturity. After that they should have enough cashflow to spend 25bn a year on investment in the network.

The only effect I see is higher trade receivables from NCC and more provision for bills that may never get paid. The wayleave fees won't be recognized in their books of account unless a courtroom judgment forces them to do so. In short, I see it as a nothingburger. (Kenya Power have the backing of State House )