Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.

My view or understanding of Ohana's philosophy is KK will pursue PROFITABLE growth rather than Segman's policy [at the time] of growth in volumes at the expense of profits.
There are different schools of thought but after seeing what happened to ARM, KK and KQ in the not so distant past, I agree with "slow but sure" growth in the core business.

What I would like to see happen is greater growth in "other income" by pursuing better re-development of the prime stations that have extra land.

KK has put a lot of money into expanding the LPG business and that will pay off going forward.

The K-Card could be leveraged further. That has disappointed me i.e. I do not see a major push to get more K-Cards into more hands and tie it in with other retailers for increased loyalty.

Banks cannot be evaluated on "debt" since their entire business is predicated on debt!

Depositors "lend" to banks.
Banks "lend" that money to borrowers.
In Kenya, there is a mismatch i.e. loans maturities > deposit maturities hence the fear of a run on a bank. The bank may be fine and lent properly BUT a borrower can't cash out, at a "fair" price, as fast as a bank needs to if there's a run.

KK, ARM, etc business is not "money" but "product" ... Money is a means of exchange. For banks, "money" is the "commodity"

Boom. KES 13.8 prints. Glad I made it out in good time and condition

No. It was only 1,000 shares. Bought shoes!

Good for you as we get to 15 and beyond.
I may have bought some of your shares.

As of 7 Feb 2018
KQ trades at 16/- with a negative EPS.
KK trades at 15/- with a positive EPS (2017) even after huge write-offs [KPRL, lawsuit and Segman]

I expect a very good 2018. Kestrel [it is related to KK] is also bullish. I await a FY 2017 dividend of 30-50 cents. And an interim FY 2018 dividend.

It's good to acknowledge that KK and Kestrel have "ties".
If KK can sustainably make an EPS of 2.50 that's a great ROI of 16.66% = (2.50/15.00)... I do not need a buy-out.

Net Margins: Yes, they are low but that's common in the industry. This is a volume driven business not a "high value" business. It is certainly not Apple.

With KK's re-entry into the OTS, the net margin may even drop further but volumes/revenues will increase. OTS cargoes have slim margins with a low chance of default due to the penalties imposed by MoE/ERC on the defaulters.

@miennyma - KK knows how to successfully navigate the price controls... It gives them an advantage and so they prefer it that way.

I do not like price controls coz they distort the markets...

Why does GoK want to remove price controls? Simple. So they can shift the blame of higher fuel/retail prices to the OMCs in the wake of rising oil prices.
With price controls, the higher oil prices are translated to higher pump prices, and ERC sets the prices, and OMCs prefer that to being accused of price gouging by ignorant consumers.

Will oil and distribution remain under energy or mining and petroleum? That will shape the course of price control

Positive FY17 figures. Now the issue is to determine bonus or dividends for investors
I can see Total touched 30 Kes as well.