@Ericsson they authorized the additional 7.8Bn for the purpose of the upcoming rights issue... If another purpose comes up they will just authorize more shares...

Utilities should be looked at as bonds i.e. a dividend yield instead of interest yield. KenGen will continue needing cash to expand.

It has done well over the years & is a virtual monopoly but the assets may not be worth what they are stated at.
The RoA and RoE are very low. Some assets may be over-priced on account of corruption & inefficiencies. The checks & balances may be few since there are few or no competitive benchmarks.

I will stay out of the Rights Issue but I will monitor it on an occasional basis.

Technically correct if the following assumptions are correct
1. Ratio of 2:1 is deployed implying that out of 7.8 authorised incremental number of share, only 2 times existing no. Of shares (2.xy bn) will be issued and called for payment at a discount to the current market price.
That automatically determines the rights price at around 6.5 and further prepositions that
A. Gova must convert it debt to equity 100% or if it does not do so it's rights are taken by the market...... But the Gova is in a fin. crunch, leaving an option that the market pays for its share of rights hence part of the Gavas debt gets paid from the proceeds. This means cash mob indirectly or omo as someone may wish to call it.
Now imagine the consequences of say 50 percent conversion. Scratching my head almost bald already.

What's the current Dividend Yield (after the W/Holding Tax)?
What's the current DPS?
Can the DPS be maintained?
What's the Dividend Yield vis-a-vis the recently floated IFB at 15% NETT of taxes?

@VituVingiSana
Not severe bond market but stock market.
The current dividend yield after witholding tax for the likes of safaricom is about 3.8% (basing on FY 2014/2015).
For KENGEN the dividend yield is 7.81%
The DPS is 0.65 with book closure on Wednesday 16 December 2015.
The DPS if you factor in the rights issue it will go down but the amount of money allocated as dividend will go up.
You can't compare dividend yield with interest on IFB net of taxes because share price has propensity of appreciation based on financial performance of the company.
A growth of profits translates in appreciation of share price and higher dividend which is not the case with bond market.
Even if profits of a company doubles the amount of interest/interest rate of the bond will not go up.It will remain as it is.That is why bond market is called fixed income.