@Ebenyo
Don't also forget that KLM owns 26% of KQ.
Putting the two shareholding together comes to 55%

@VVS
KENGEN early this year borrowed a short term loan of sh.1.55bn from Citibank which must be repaid by next month.

That taking in of more debt will be slow as gava is trying to avoid excessive power which leads to higher power bills.
Look at how they have screwed Centum with the Lamu coal power project

The reality looks like Kengen cannot survive without debts.The idea is to play around their debt to equity ratio.When its high,they look for ways to reduce it in order to borrow more.Besides rights issue,what other ways do they have of reducing debt ratio? i guess after deceiving investors to buy into this year rights,they wont repeat the trick again in the near future.
This paints a gloomy picture of this company.Debts,debts,debts and more debts.This is the route that many Gok controlled firms currently under ICU passed.KQ,Mumias and Eapc.
Why is Gok holding kengen and kenya power so tightly? They hold 70% in kengen and 50% in kenya power.Maybe because they use the two companies for political propaganda.
Since the head of Gok is a politician,i guess im screwed as an investor in these companies.But since im a kenyan citizen,i will have to go by what my country put on the table.I cant be american,or german or france.
Will Gok one day cede ground in these companies? like what they did with safcom? Will they be afraid to loose their propaganda tools? Safaricom is so good because they did let go majority shareholding.

The delegated auditor for Kengen is Pricewaterhousecoopers.

i think the reason why the auditor is releasing this bombshell is because the company is going down and the auditors dont want to be caught in another Uchumi like situation.

Did u read @karasinga analysis? he correctly reflected it in his forecast.