@subidu - ROA for KPLC is lower than it should be. They have not revalued assets. After that the ROA would be very low.

IPPs can sell directly to large consumers but IPPs dont want the hassle of collections, etc... so KPLC bears that cost... and shud be paid for it...

So VVS taking into account a capital intensive generating business like KenGen...it revalued its assets in 2007 they rose over 50%, so the returns should match this (possibly growing by multiples every 5-10 yrs)? Well that's sounds kinda expensive...for me and the economy...every few years.

Well I didn't know IPPs could sell directly to large consumers, I assumed KPLC/KETRACO had monopoly to transmit and distribute power...but definately something that may attract foreign investors...As an end user, maybe a large Kenyan manufacturer, like Bamburi Cement, I'd probably consider any proposal that would by-pass KPLC and but connect me be directly to an thermal IPP (negotiate the charge).

With regard to Lake Turkana Wind Power (LTWP) and the transmission line they intend to build into the national grid...they signed a BOOT [Build Own Operate Transfer] with KPLC (sort of concessionary agreement methinks)...so if I was LTWP...why would I go through the trouble of building a 300MW plant, investing in a transmission line then decide to use KPLC to collect the money from large elec consumers like Bamburi Cement...the hassle of collections would seem rather trivial...

Large consumers buy about 2,000 GWH...thermal IPPs like Iberafrica supplied about 344 GWH. If I was them I'd consider bring diesel generators close to major manufacturing hubs and build a line directly to these customers. Maybe this is the next best idea in the energy field...that's if IPPs are actually allowed to supply power directly to consumers...avoid those pesky power purchase agreements.