KenGen Results: First Impressions
The man they call Coldtusker has posted some highlights and initial thoughts on Kenyan power firm, KenGen's, first results as a publicly traded company. Be sure to check out the insightful comments, too.
The man they call Coldtusker has posted some highlights and initial thoughts on Kenyan power firm, KenGen's, first results as a publicly traded company. Be sure to check out the insightful comments, too.
1 comment:
Hi!
Thanks for the link.
I reiterate my caution since there is a TAX CREDIT (2005-6) whereas there will be TAX PAYABLE (2006-7) at 25%.
Furthermore, the reduction in thermal generation are passed through to the consumers.
A major gain was a result of exchange differences (strong KShs) in KenGen's favour. Will this continue in 2007 (an election year)?
Finally, there will be costs to establish new projects that will have to funded thus a drain on cash through a PLUS for the long-term.
Don't expect the 60cent price raise to be implemented asap because its a political issue for the government.
The government should (short-term measure) subsidise KPLC/KenGen until the ERB passes the new rate increase. KenGen should "freeze" its rate (except for thermal passthrus) for the next 5 years.
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