heri wrote:With regards to the Treasury demand that state corporations surrender all excess cash, where did that leave Kenya RE?
Kenya Re is 60% owned by GoK.
It would be wrong (not sure about the constitutional/legal aspect) of GoK to expropriate 100% of cash/bonds held by Kenya Re.
The appropriate method would be to ask Kenya Re to pay out a dividend from "excess reserves", if any, to ALL shareholders.
The "special" dividend should not starve Kenya Re of reserves it needs to continue growing or cause any financial difficulty.
GoK will get:
- 60% of the total dividend
- W/Tax from the other 40%
If Kenya Re doesn't have the cash to pay GoK the 60% then it can always, if agreed beforehand, transfer the equivalent, at a fair/market valuation, in T-Bills and T-Bonds.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett