Tuesday, February 27, 2007

KenGen/KPLC saga

The way forward on the ongoing saga between KenGen and KPLC with the former selling power to the latter at an enhanced tariff of Sh2.36, whilst KPLC and the Government want it to sell at Sh1.76 may finally be resovled tomorrow with the expected performance update to the investors.

The announcement is likely to move either company shares up or down depending on who is favored.

1 comment:

MainaT said...

Here is the update on the story http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=3&newsid=92796. The impact is huge for both companies. I however don't see how long the govt will continue to basically subsidise electricity generation. The consumer will either have to pay more or we generate lesser electricity.