I think KenGen is a good long-term stock. Their financing costs are very low and they have managed their debt prudently. Most of it is basically on concessional terms. Secondly, they are the only guys I know of in Kenya who have consistently executed their projects including geothermal. GDC have been singing about geothermal so has everyone else but KenGen have executed. Thirdly, the equity raising will be like a quarter of all the funds they raise and the economics of most of their projects show that they cover their interest payments significantly. The demand for power is there and they will raise their earnings in the long-term. In 2-3 years they should be able to triple their PBT and cover the pending dilution. I'll wait for it to continue falling and accumulate enough to take part in the rights issue.

@sparkly, that price upthrust during the 'very nice' FY announcement is going to leave a very bad taste I warned. Remember our discussion. Let's compare notes next October. This super dilutive rights issues will crater this counter badly. Sell while you can then buy post rights, which will be far cheaper anyway. This is KQ 2012 again.

and the government still holds huge percentage of shareholding which can further dilute it incase price appreciates

@kawi-254;
wewe ndio huna pesa you will be shocked by the subscription rate.
Government stake will still remain at 70%

@Ericsson you have been very positive about this rights ~ 3 years down the line. What do you know?