Whether wanjiku was screwed or not is neither here nor there. No one was forced to buy kengen. So shauri yao

@kawi254, I read you. It is amazing isn't it? But it is a good thing in its way that @kyt speaks up because he becomes useful in a way Trump is by saying what really is, so Wanjiku can at least be aware that she should not take Wazua advice unfiltered.

Is the chill pill for me? If so, I don't think I need it. I was not talking about the "truth" that you (or wanjiku) lost money, but rather the truth that no one is really looking out for you including Wazuans and CMA. So you should feel "happy" that you will not be led along like a lamb for the second round.

@guru267
Did u read the following statement
"but the maximum aggregate nominal amount of ordinary shares which may be allotted in
accordance with this authority shall be, seven billion eight hundred and one million six hundred and thirty
eight thousand five hundred and forty four (7,801,638,544) ordinary shares of Shs 2.50 each ranking
pari passu in all respects being the total number of existing unissued ordinary shares in the capital of the
Company."
7.8bn is the maximum which means they will only use part of them for the rights issue.

Those who bought at IPO price and sold at anything higher than that never lost money the high was 40+. Those who bought at 7 in 2011 and sold at 17 in 2013 made money. Dont generalize if you are still holding. Passengers here keep boarding and disembarking all the time.

@Ericsson they authorized the additional 7.8Bn for the purpose of the upcoming rights issue... If another purpose comes up they will just authorize more shares...

Utilities should be looked at as bonds i.e. a dividend yield instead of interest yield. KenGen will continue needing cash to expand.

It has done well over the years & is a virtual monopoly but the assets may not be worth what they are stated at.
The RoA and RoE are very low. Some assets may be over-priced on account of corruption & inefficiencies. The checks & balances may be few since there are few or no competitive benchmarks.

I will stay out of the Rights Issue but I will monitor it on an occasional basis.

Technically correct if the following assumptions are correct
1. Ratio of 2:1 is deployed implying that out of 7.8 authorised incremental number of share, only 2 times existing no. Of shares (2.xy bn) will be issued and called for payment at a discount to the current market price.
That automatically determines the rights price at around 6.5 and further prepositions that
A. Gova must convert it debt to equity 100% or if it does not do so it's rights are taken by the market...... But the Gova is in a fin. crunch, leaving an option that the market pays for its share of rights hence part of the Gavas debt gets paid from the proceeds. This means cash mob indirectly or omo as someone may wish to call it.
Now imagine the consequences of say 50 percent conversion. Scratching my head almost bald already.

What's the current Dividend Yield (after the W/Holding Tax)?
What's the current DPS?
Can the DPS be maintained?
What's the Dividend Yield vis-a-vis the recently floated IFB at 15% NETT of taxes?

@VituVingiSana
Not severe bond market but stock market.
The current dividend yield after witholding tax for the likes of safaricom is about 3.8% (basing on FY 2014/2015).
For KENGEN the dividend yield is 7.81%
The DPS is 0.65 with book closure on Wednesday 16 December 2015.
The DPS if you factor in the rights issue it will go down but the amount of money allocated as dividend will go up.
You can't compare dividend yield with interest on IFB net of taxes because share price has propensity of appreciation based on financial performance of the company.
A growth of profits translates in appreciation of share price and higher dividend which is not the case with bond market.
Even if profits of a company doubles the amount of interest/interest rate of the bond will not go up.It will remain as it is.That is why bond market is called fixed income.