Can't you see that gov here is just screwing wanjiku? Not a penny are they investing, only conveniently converting debt to equity, aNd wanjiku left to bankroll the rights issue after which she will be screwed just like kplc, Kq a few years ago.

Seems even more palpable. Why convert through a rights issue? Gova should have kengen entirely on its own. The debt is Govas, what advantages will the 30% shareholders get from the conversion and the associated costs of capital restructuring that warrants dragging wanjiku into this private member's club? And if anything why is this not privately arranged. 100%conversion is not enshrined in that press statement. Is the current capital structure efficient or not is not a question for gova since either way, gova is calling the shots as lender and a owner.
My take is a shocker is on the way. What's the worst case scenario here? Paying a debt that went to costly tenderprenuers and waxing up to the ogre for another round of binge. Let's watch it as it pan's out. Fench sitting here at the Garden.
My one milli dollar quizs are, what portion will gova convert and what shall be of the unconverted debt. Will gova pump in a coin for probable remainder of its rights allotment?
What use is 30‰ shareholders pay go to?

Date and Venue of AGM?

@AGuy - I was creamed during the KPLC Rights Issue. KPLC was due for a triennial review [as indicated in the IM] of rates just after the Rights Issue. Then GoK denied that rate increase after the Rights Issue. Thereafter the price crashed and I sold out at a loss. Over time, I have built up an aversion to investing 'Kenya' firms. I acknowledge I am tempting fate by being in KenRe.

@Sparkly - Ultimately, it's a 'bond-like' play.

@Ericsson

A dividend yield of 7.81% vs 14.81% [For easier calcs, assume 14.81% instead of the average of 14.75% or the 14.95% as the average bid] means the IFB gives 7% more. All income is after tax. I will use some assumptions to ease the mathematics.

Which means I can buy the IFB and invest/save the balance of the 7% for the duration of the IFB. It was a 9-yr IFB with some early principal repayments so effectively 7 years. 7% (compounded) x 7 years = 60%. Therefore KenGen shares have to rise by 60% in 7 years for KenGen = IFB. That is possible. Plus IFB interest is 'fixed' but KenGen can increase (or decrease) its dividends.

Here is the catch. If you look at KenGen as a dividend play then you must remain happy with 7-10% yields. Any increase in the share price is a bonus.

I have limited cash therefore I chose KenRe & KenolKobil with lower dividend yields but a better chance of price appreciation. Plus the level (& cost) of debt:equity is important to me. KenGen need to invest a lot into new projects & those loans will be priced to included risk associated with elections, eurobond indebtedness, US Fed, etc. In addition, lenders will want guarantees & ring-fenced cashflows which favor accelerated debt repayments over dividends.

KenRe DPS = 0.70 Price = 21.75 DY = 3.22% less WT = 3.06%
KK DPS = 0.25 Price = 8.00 DY = 3.12% less WT = 2.97%
KenGen DPS = 0.65 Price = 7.90 DY = 8.22% less WT = 7.81%
[For KK I used 0.25 vs 0.20 since the 0.10 interim leads me to believe the final will be 0.15 or more]

So KenGen is not a bad buy especially if the Rights Price is at a further discount for those looking for a 'bond' but for @VVS looking for Total Return, I will go for KenRe or KK for now.

I will keep an eye on KenGen and at some point, if (& when) I feel the management has put behind it the shady deals, over valued assets, tenderpreneurship, etc then I may look at it as my 'bond' but not this time around. My gut feeling is that the share prices will see ups and downs therefore I may get into KenGen at a similar level to today's price hence preserving my Dividend Yield.

Good analysis by @sparkly concerning financial statements,debt and purpose of the rights issue.

AGM is tomorrow 16th? Where? at what time? anyone with the notice convening the meeting?

No Its at Safari Park Hotel at 11am

What will be the final issued shares after the rights issue? 2bn+7.8bn is that right?

Today was the AGM. I arrived late so I shall mention what I got in questions session. The rest who were present on time can say much:
1. Date and price for rights will be communicated by directors soon.
2. The chairman said the tendapreneurs accusations were false as they were cleared. The complainant appealed, case ruling was to be today.
3. Came in Chami!!!
4. They couldn't pay higher dividend owing to prevailing policy and the company needs more cash to fund projects.
5. Some directors were questioned as to why they don't own shares in kengen. (Do they lack trust in company they work for?)
6. From the shareholding 88501 have btwn 1-500 shares that's 1%. 39827 have 501-1000 about 1.44%. 43647 have 2000-5000 that's 4.24%.
7. The speakers/questioners really praised the management. I even thought they were hired or lured with the full lunch box (water,juice,yoghurt, apple,chicken piece, toast,cake,chocolate).
Anybody who heard the initial part?

The share is now at 5.50 from 15 when they started talking of rights.

Surely what is the problem with Kengen Directors. 3 years now and they still haven't been able to do a rights issue!