This CEO will take home Sh3,012.4 in dividends on top of his X million shillings salary.

Surely did this reporter have to go all the way to publish this headline? Very poor of BD, hawana BiDii

Reminds me of KQ. The former CEO had zero shares. The CFO's shares were piddling. The entire board had fewer than 30,000 shares!

The story is a wealth declaration at best. We need to know what else they have.

But bleeding ex-div

JICA will provide additional financing for Olkaria V Geothermal Power Plant (140MW), while money from the rights issue will be used to develop Olkaria I Unit 6 (70mw)for the total 210mw to be commissioned in financial year 2016/2017.

Rotich (Treasury) should allocate money for the rights issue we close it next year.
This is a counter that will explode once the rights issue is done

KenGen commissions 140MW today ahead of rights issue

The Kenya Electricity Generating Company (KenGen) will commission the second phase of Olkaria 1 additional units 4 & 5 (140MW) for the 280MW expansion made in the area in 2014. Reliability tests were completed at the plant in December 2014. In 2014, KenGen added 315MW, more than doubling its share of geothermal energy from 154MW at the beginning of the year. At USD 7.20 cents, geothermal power is the cheapest renewable source of electricity in Kenya. The increased capacity has resulted in a reduction in the cost of industrial electricity from KES 18.80 per kWh to KES 13.29 per kWh while the domestic tariff (of up to 50 kWh) has reduced from KES 15.53 per kWh to KES 10.02 per kWh. The fuel cost component (which has been the largest component in electricity bills), declined from KES 7.22 per kWh in August 2014 to KES 2.51 per kWh in February 2015. Geothermal now accounts for 51% of the national generation mix, up from 41% in the last six months with the consistent decline in hydro (dam levels lowest in 5 years), and thermal leading to a reduction in electricity costs by about 30%. The Ministry of Energy plans to make significant investments with the Last Mile Connectivity project to almost triple electricity access to 75% of population in four years. To make further investments in electricity generation, KenGen plans to have a rights issue of an estimated KES 50bn in 1Q15, which we estimate will be a rights issue of 3 for every 1 share held at a price of KES 7.58. Of the KES 50bn planned to be raised, the Government is expected to inject KES 35bn, equivalent to its 70% stake while the public will contribute KES 15bn. We expect Government participation to see the conversion of its existing debt into equity, with KenGen required to raise debt to replace this component. The money raised will be used to expand mainly geothermal power production to meet KenGen’s share of 844MW - out of the 5,000MW total the Government is aiming to inject into the national grid by 2017. KenGen has an installed 315MW of this target, with the bulk having come in the second half of 2014- and whose initial revenue and profitability impact will be felt in the 1H15 numbers to be out in February 2015. While dilution for the rights issue is expected to be significant, we believe profitability will show a vast improvement due to the additional capacity increase of 21%. (KenGen, Daily Nation, Standard Investment Bank)

It all sounds nice and rosy. Commissioning of projects. Increased mega watts installed.

But why would a legitimate company ask its shareholders to raise 50bn in one go? why not raise smaller amounts as you need them, like NIC, DTB does. I know KENGEN has a high capex, but this amount is too high.
Its dishonest if u ask me, 5-10 years down the line (by that time we'll be in another regime), i wonder whether the impact will be comensurate. And its a killer rights issue, dilution galore, hurting share price for a long time. The case studies are KPLC, KQ trading below rights price in a bull market(NSE year high) 2-4 years down the line, with nothing to show of the rights cash, esp KQ. end rant

3 for 1. lets see. if one has 1 M worth of shares you need 3 M worth of shares to avoid dilution. It's "3 times" an IPO. This is more of an IPO than a rights issue.

ION. ( a big rat was spotted in Uchumi Hyper Ngong rd yesterday by friend. i kid you not)

disclaimer. I dont own shares in any goverment entity, and i do not trust them as a co- shareholder. but.. ^^^ all true

With history as the rear view mirror, it makes me really question the motives of these "killer rights"

The 50bn KENGEN requires to do a balance on the debt to equity ratio.
They want to take more loans from development institutions like JICA and European Investment Bank for the geothermal power projects.
It's the reason the money is needed in one-go.
Raising in smaller amounts has it's challenges.Let them do the rights issue we get cheaper power.
@Aguytrying
Kenya watu wako na pesa we ndio huna