Hidden in all the accounting mumbo jumbo is the fact that Kenya Power spent a lot of money rolling out street lights in major towns and connecting consumers for #GoKDelivers election campaigns and they have not been paid. A part of Eurobond 2 will be given to Kenya Power to correct it's accounts and full year results will be looking better.

Where is the prospectus of Eurobond 2

Talk of the challenge of finding undervalued stocks in Nse!

With a P.E. of 2.62, EPS of 3.07 and Dividend yield of 6.21%, return on equity of 11.53 % vs industry 8%, and a Gross margin 0f 27%, i believe Kenya power is undervalued. Indeed based on the NAV of 35.90 buying today is like paying 20 cents for one dollar. Furthermore, assuming they will pay a conservative 4% dividend every year, you stand a chance retiring very comfortably courtesy of KP

Problem is generation capacity is growing at a much faster pace than electricity sales... Sales to industries shrank by 1% in HY2018 .Kenyan economy must be doing badly or industries are turning to alternatives due to Kenya Power incompetence... Soon this company will find itself in a huge liquidity crisis unless GoK injects money into it... Already in HY2018 they took a huge overdraft facility to starve off a liquidity crisis...