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Kenya Airways...why ignore..
Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Seles83 wrote:I own no shares of KQ or any stake in JKIA, but anyone can tell you that Kenya strategic location in Africa, coupled with existence of National Carrier is just a source of growth engines.
Imagine how much Dubai, Abu Thabi and Doha derived their economies from Tourism and transient travellers.
Surely as part of achieving >10% GDP growth, JKIA Expansion and KQ & JamboJet growth is integral to Kenya growth.
The debate around debt is just misplaced, the only worth considering is that is debt growing our economy? If not, we are deep trouble!!
The projects funded by debt are NOT generating a break-even ROI. Look at SGR (400-600bn including land purchases).
Let's use 400bn and at 5% = 20bn is the minimum required just to pay the "interest" but more is required to cover depreciation and principal repayments.
Personally, i think we are not investing enough in infrastructure we need 20 times faster growth, even if it is driven by debt. Kenya population is relatively young and growing really fast, so no lacking in terms of future tax payers!!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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I think the Jubilee government is not doing itself service in quantifying the ROI, the ROI on investment is actually high. Elements to consider: - Increased new traffic (people) to coast, quantify consumer spending and new investments by public and private sector to harness the gains - The reduction of use of road transport hence less maintenance - Significant reduction of commuting time hence increased productivity and capital efficiencies -New efficiencies achieved through the learning of completion of such major project -etc etc We are already past 5%, and it is only going to increase once the utilization approaches over 80% and completion of the project. Just have a look at Thika and try and quantify the gains. Clearly ROI of 80% is too little...Kenya is heading place, corruption is just slowly us down.. More monies, more problems...
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Seles83 wrote:I think the Jubilee government is not doing itself service in quantifying the ROI, the ROI on investment is actually high. Elements to consider:
- Increased new traffic (people) to coast, quantify consumer spending and new investments by public and private sector to harness the gains
False equivalency. Tourism to the coast could be just as high or higher if there was a good road. If one can drive from Nairobi (Kangemi/CBD/Langata) to Mombasa (CBD/Nyali/Bamburi) in 5 hours (100km/h) then who needs the hassle of going from Kangemi/CBD/Langata to Syokimau to Miritini to CBD/Nyali/Bamburi?
- The reduction of use of road transport hence less maintenance
Reduced maintenance for the road but surely the SGR also needs maintenance? Plus the old railway could have been rehabilitated at a fraction of the cost.
- Significant reduction of commuting time hence increased productivity and capital efficiencies
False equivalency. The only reason SGR is "attractive" is coz of the current state of the NBO-MSA road. Single lane most of the way with sections that are poorly designed or in bad shape e.g. Miritini to CBD.
-New efficiencies achieved through the learning of completion of such major project
I have no idea what that means.
-etc etc
We are already past 5%, and it is only going to increase once the utilization approaches over 80% and completion of the project.
Transporters/importers are being coerced in using SGR. Many prefer trucks which can deliver to the final destination.
Just have a look at Thika and try and quantify the gains. Clearly ROI of 80% is too little...Kenya is heading place, corruption is just slowly us down..
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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obiero wrote:Seles83 wrote:The Jambo Jet is a redemption path for KQ, perhaps they can borrow a leave from Air Asia and get a grip of the business... Lots of Capital injection required from government couple with multi billion upgrade of JKIA.
JKIA is a national disgrace especially when you visit other developing countries airports. It would be interesting to find out which other African airports you are referring to.. are all developing countries in Africa? China, SA, Pakistan, Croatia etc are all developing countries If Obiero did it, Who Am I?
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Rank: Member Joined: 11/9/2007 Posts: 288 Location: OZ
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VituVingiSana wrote:Seles83 wrote:I think the Jubilee government is not doing itself service in quantifying the ROI, the ROI on investment is actually high. Elements to consider:
- Increased new traffic (people) to coast, quantify consumer spending and new investments by public and private sector to harness the gains
False equivalency. Tourism to the coast could be just as high or higher if there was a good road. If one can drive from Nairobi (Kangemi/CBD/Langata) to Mombasa (CBD/Nyali/Bamburi) in 5 hours (100km/h) then who needs the hassle of going from Kangemi/CBD/Langata to Syokimau to Miritini to CBD/Nyali/Bamburi?
- The reduction of use of road transport hence less maintenance
Reduced maintenance for the road but surely the SGR also needs maintenance? Plus the old railway could have been rehabilitated at a fraction of the cost.
- Significant reduction of commuting time hence increased productivity and capital efficiencies
False equivalency. The only reason SGR is "attractive" is coz of the current state of the NBO-MSA road. Single lane most of the way with sections that are poorly designed or in bad shape e.g. Miritini to CBD.
-New efficiencies achieved through the learning of completion of such major project (easier to implement future projects)
I have no idea what that means.
-etc etc
We are already past 5%, and it is only going to increase once the utilization approaches over 80% and completion of the project.
Transporters/importers are being coerced in using SGR. Many prefer trucks which can deliver to the final destination.
Just have a look at Thika and try and quantify the gains. Clearly ROI of 80% is too little...Kenya is heading place, corruption is just slowly us down..
What most people seem to most is that they are always talking about the ideal situation, and completely miss the point completely. The new rail system is changing the Kenya Infrastructure landscape. A new dawn to Kenya, a big step to the true vision of Kenya!! I have reassigned to believe that corruption is part of Kenyan culture and not synonymous with leadership. It has become a way of life!! We see More monies, more problems...
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Uganda Airlines https://www.businessdail...4984-m3a4vtz/index.html
DOA? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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KQ gets additional Sh4.3bn from banks https://www.businessdail...7624-5x9s9cz/index.html
KQ is a like an alcoholic. It's never enough. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Seles83 wrote:VituVingiSana wrote:Seles83 wrote:I think the Jubilee government is not doing itself service in quantifying the ROI, the ROI on investment is actually high. Elements to consider:
- Increased new traffic (people) to coast, quantify consumer spending and new investments by public and private sector to harness the gains
False equivalency. Tourism to the coast could be just as high or higher if there was a good road. If one can drive from Nairobi (Kangemi/CBD/Langata) to Mombasa (CBD/Nyali/Bamburi) in 5 hours (100km/h) then who needs the hassle of going from Kangemi/CBD/Langata to Syokimau to Miritini to CBD/Nyali/Bamburi?
- The reduction of use of road transport hence less maintenance
Reduced maintenance for the road but surely the SGR also needs maintenance? Plus the old railway could have been rehabilitated at a fraction of the cost.
- Significant reduction of commuting time hence increased productivity and capital efficiencies
False equivalency. The only reason SGR is "attractive" is coz of the current state of the NBO-MSA road. Single lane most of the way with sections that are poorly designed or in bad shape e.g. Miritini to CBD.
-New efficiencies achieved through the learning of completion of such major project (easier to implement future projects)
I have no idea what that means.
-etc etc
We are already past 5%, and it is only going to increase once the utilization approaches over 80% and completion of the project.
Transporters/importers are being coerced in using SGR. Many prefer trucks which can deliver to the final destination.
Just have a look at Thika and try and quantify the gains. Clearly ROI of 80% is too little...Kenya is heading place, corruption is just slowly us down..
What most people seem to most is that they are always talking about the ideal situation, and completely miss the point completely. The new rail system is changing the Kenya Infrastructure landscape. A new dawn to Kenya, a big step to the true vision of Kenya!! I have reassigned to believe that corruption is part of Kenyan culture and not synonymous with leadership. It has become a way of life!! We see There's no free lunch. The cost of these White Elephants might be horrendous. Look at KQ [this is a KQ thread] and the "praises" for Project Mawingu which didn't take into account many of the "downsides" and we ended with an entity that wiped out 80bn+ in value. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,213 Location: nairobi
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VituVingiSana wrote:Seles83 wrote:VituVingiSana wrote:Seles83 wrote:I think the Jubilee government is not doing itself service in quantifying the ROI, the ROI on investment is actually high. Elements to consider:
- Increased new traffic (people) to coast, quantify consumer spending and new investments by public and private sector to harness the gains
False equivalency. Tourism to the coast could be just as high or higher if there was a good road. If one can drive from Nairobi (Kangemi/CBD/Langata) to Mombasa (CBD/Nyali/Bamburi) in 5 hours (100km/h) then who needs the hassle of going from Kangemi/CBD/Langata to Syokimau to Miritini to CBD/Nyali/Bamburi?
- The reduction of use of road transport hence less maintenance
Reduced maintenance for the road but surely the SGR also needs maintenance? Plus the old railway could have been rehabilitated at a fraction of the cost.
- Significant reduction of commuting time hence increased productivity and capital efficiencies
False equivalency. The only reason SGR is "attractive" is coz of the current state of the NBO-MSA road. Single lane most of the way with sections that are poorly designed or in bad shape e.g. Miritini to CBD.
-New efficiencies achieved through the learning of completion of such major project (easier to implement future projects)
I have no idea what that means.
-etc etc
We are already past 5%, and it is only going to increase once the utilization approaches over 80% and completion of the project.
Transporters/importers are being coerced in using SGR. Many prefer trucks which can deliver to the final destination.
Just have a look at Thika and try and quantify the gains. Clearly ROI of 80% is too little...Kenya is heading place, corruption is just slowly us down..
What most people seem to most is that they are always talking about the ideal situation, and completely miss the point completely. The new rail system is changing the Kenya Infrastructure landscape. A new dawn to Kenya, a big step to the true vision of Kenya!! I have reassigned to believe that corruption is part of Kenyan culture and not synonymous with leadership. It has become a way of life!! We see There's no free lunch. The cost of these White Elephants might be horrendous. Look at KQ [this is a KQ thread] and the "praises" for Project Mawingu which didn't take into account many of the "downsides" and we ended with an entity that wiped out 80bn+ in value. Wiped out indeed, but tugange yajayo
KQ ABP 4.26
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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Seles83 wrote:VituVingiSana wrote:Seles83 wrote:I think the Jubilee government is not doing itself service in quantifying the ROI, the ROI on investment is actually high. Elements to consider:
- Increased new traffic (people) to coast, quantify consumer spending and new investments by public and private sector to harness the gains
False equivalency. Tourism to the coast could be just as high or higher if there was a good road. If one can drive from Nairobi (Kangemi/CBD/Langata) to Mombasa (CBD/Nyali/Bamburi) in 5 hours (100km/h) then who needs the hassle of going from Kangemi/CBD/Langata to Syokimau to Miritini to CBD/Nyali/Bamburi?
- The reduction of use of road transport hence less maintenance
Reduced maintenance for the road but surely the SGR also needs maintenance? Plus the old railway could have been rehabilitated at a fraction of the cost.
- Significant reduction of commuting time hence increased productivity and capital efficiencies
False equivalency. The only reason SGR is "attractive" is coz of the current state of the NBO-MSA road. Single lane most of the way with sections that are poorly designed or in bad shape e.g. Miritini to CBD.
-New efficiencies achieved through the learning of completion of such major project (easier to implement future projects)
I have no idea what that means.
-etc etc
We are already past 5%, and it is only going to increase once the utilization approaches over 80% and completion of the project.
Transporters/importers are being coerced in using SGR. Many prefer trucks which can deliver to the final destination.
Just have a look at Thika and try and quantify the gains. Clearly ROI of 80% is too little...Kenya is heading place, corruption is just slowly us down..
What most people seem to most is that they are always talking about the ideal situation, and completely miss the point completely. The new rail system is changing the Kenya Infrastructure landscape. A new dawn to Kenya, a big step to the true vision of Kenya!! I have reassigned to believe that corruption is part of Kenyan culture and not synonymous with leadership. It has become a way of life!! We see How long have we been learning to implement "future projects" and yet our bridges are still collapsing? Anyway @Seles83, you sound a little bit like Mutua when he was the GOK spokesman.
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