mlennyma wrote:kenol kobil decided to write off 3.1billion? is kenol trying to be government friendly by avoiding confrontations? if the others succeed will kenol be part of the deal?..but again how will this additional shilling help if marketers are still giving discounts?.meanwhile kenol emerged the best performing share in 2016 and analysts including me expect it to be attractive in 2017
I think it was 1.3bn for this matter BUT I could be wrong. There is also the KPC matter.
Not trying to be "GoK-friendly" but if you haven't been paid for 15 years then take the provision and the tax benefit that comes with it.
It seems Ohana isn't taking GoK to court as much as Segman did. That said, if KK is owed 1.3-3.1bn from GoK then it should fight until all doors are closed.
Yes, they cannot ignore KK and pay the others since KK can also go to court citing the payments to the others. KK can always cut a deal with GoK and settle for less. If ERC is forced to add KES 0.10 - 1.00 to the price then KK will also benefit.
The "extra" shilling per litre is pure profit [cash inflow] for KK. The Deal Poa can be increased to 6/- but for now KK can put it in its pocket & pay it to us as a dividend.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett