@VVS you are getting angry for nothing. Here we are talking about KK and KPRL not moism and KANUism. Furthermore, Kaptagat Tea Factory is still inside the Mau, project kamwana is
the president.

Back to KK. In the long run, a business that changes its main line of business from selling commodity xyz to seeking compensation from the government, will just end up been frustated by the system till it dances to the tune or terminates its operations.

Just advice your senge-man to stick to selling petroleum products.

A little more info:

Most (if not all OMCs) have refused to use KPRL as a refiner after 30th June 2013. The refinery will not have clients yet they owe 7bn (or more) to the OMCs according to Deloitte. As expected, KPRL has rejected the findings of the report.

KK took the Shs 1.2bn in product as an offset against the Shs 3.1bn. So KK needs to wait another 19 days & then the KPRL issue goes away i.e. they need not buy from KPRL. KK will be short Shs 1.9bn but they have gone to court to demand that amount.

In the meantime, KK can use Shimanzi to import what they need. They can also pay other OMCs for hospitality agreements & buy products from other OMCs at a fee. KK will have to shift exports to EAC away from Kenya to Tanzania but with the new Terminal in Dar that is not a problem.

So exports to Rwanda & parts of Uganda can be supplied via Dar not Mombasa. Eastern Uganda (supplied through Kenya) is a tough market for them due to untaxed imports so it might not be bothered.

That leaves Kenya where KK's market share will drop but the profitability can increase when it doesn't have to buy from KPRL. And this matter will come to a head in 19 days. The big question is whether KK will go dry in 19 days?

“All marketers have not signed the off-take agreements for next month,” said a chief executive of one of the major nine companies that control 86.4 per cent share

Oil Industry Supply Coordination Committee, wrote a joint letter to the Government demanding efficiencies at the refinery. They also demanded compensation of Sh7 billion arising from operational inefficiencies at the facility following an audit report by Deloitte that has nonetheless been disowned by KPRL.

“The costs get even higher as Kenya Revenue Authority only manages to honour Sh12 billion out of (an estimated) Sh19 billion in VAT refunds,” said another CEO.

On May 21, for instance, over 96,000 of the 233,000 cubic meters of fuel at Kenya Pipeline Company’s storage facility at Kipevu was found to have been lying there for more than 21 days. “Why license firms when they don’t have evacuation capacity.”

Why is it that no actual figures were provided to show the return to profitability? The industry is yet to recover, even Total Kenya have not announced their 1Q. More information needs to be provided.

@h2s, it’s sad that these firms are not giving us quarterly reports. ... @mwanahisa has recently pointed that Total (which used to release quarterly results) has since given notice that they will no longer be releasing quarterly results. #Very_Sad_for_Investors

Those with Insider knowledge know KPRL is between a hard place and a rock. Deloitte is KPRL's auditor and I believe they all signed a document committing them to the findings of the Forensic audit of yield shifts. Certainly even Nyoike who was the Head master and largest cheer leader of KPRL already admitted. We are looking at KPRL being shut for a few months. This is certainly what OMC are angling for. It operates, they will want to be paid 7B else no point pushing product through the a 'mkebe' refinery. Certainly if nobody blinks we will have a fuel shortage at end month, and I know this is what these OMC's are angling for.