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Kenya Power would lose out due to inefficiency and corruption.
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rryyzz
#21 Posted : Wednesday, July 25, 2012 11:20:35 AM
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Joined: 5/19/2012
Posts: 552
Ericsson wrote:
This is just somebody's opinion.Kenya Power ain't going anywhere.
Why did the gava increase its shareholding to above 50% for the company in Dec 2010.
It will still be there even in 2050.

Agreed the company may still be around for some time, doubt 2050 But what we must admit is that the playing field will be very different for the company. The county system of government will change how the company does business if it is to survive.Pray
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Ericsson
#22 Posted : Wednesday, July 25, 2012 1:40:25 PM
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Joined: 12/4/2009
Posts: 10,703
Location: NAIROBI
Highly unlikely.Most of the counties have no financial muscle to put up the lines.
Then which investor will want to put his money.The price at which you are to sell to consumers is pre-determined so your margins are reduced.
Investment is huge and returns are low

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PKoli
#23 Posted : Wednesday, July 25, 2012 3:31:06 PM
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Joined: 2/10/2007
Posts: 1,587
Ericsson wrote:
Highly unlikely.Most of the counties have no financial muscle to put up the lines.
Then which investor will want to put his money.The price at which you are to sell to consumers is pre-determined so your margins are reduced.
Investment is huge and returns are low



Investment in power industry requires huge capital outlay and you rightly pointed out, returns are low. The industry is highly regulated so you do not decide how much you should sell your power or the wheeling charges for transmission but this has to be negotiated with the regulator.
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