VituVingiSana wrote:obiero wrote:kawi254 wrote:Grand wrote:What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?
Another 'monkey' from the same forest takes over.
A terrible sign. Remember Uchumi?
Uchumi, Mumias, KQ, etc
One big difference between KQ, Uchumi, Mumias and KPLC is that there are alternatives to the first 3. People can still travel even if KQ collapsed today, People are still shopping after Uchumi collapsed and people still have sugar even without Mumias. Currently only KPLC is licensed to sell power and if I am not wrong they also own the grid.
My thoughts are there is a major restructuring of the industry coming. Remember IMF mandated some assessment of some 18 State Owned Enterprises and they were categorised according to profitability (wacha I look for that report shortly). Soon after UON announced closure of colleges. My sixth sense tells me IMF will ask for privatization/sale of KPLC la sivyo they will demand power rates to be increased. Other possible scenarios, breakup of KPLC into regional power distributors or breakup of the company into divisions. The elephant in the room to be addressed will be the 100 billion+ debt on KPLCs books. If GOK converts that to equity then current private shareholder equity will be reduced to less than 1%.
https://www.treasury.go.ke/wp-co...f-State-Corporations.pdf