Apparently the Libyans want in on Kenya but in a back-handed manner. They want to buy the Grand Regency Hotel for a song.
Mukesh Ambani (of Reliance India) & partners are offering an estimated KShs 8-12 bn while the Libyans want in at KShs 1.6bn. That is a glaring difference. I wonder who gets the difference between the 2 bids?
Solution: An open bidding process with a 20% deposit & allow the winning bidder to seek financing within 12 months. Failure to pay for the GRH in 12 months means forfeiting the deposit. In the meantime, the bidder can run the hotel JOINTLY with the CBK appointed receiver.
Kenyans will stand to benefit as they will get the best price for the asset they have paid for through their taxes.
Similarly, there is the issue of the Refinery. It is old & inefficient and needs a major upgrade but the GoK is stalling by not selling its shares to Essar - who won the tender by paying the highest price - nor agreeing to pony up 50% of the capital needed for the upgrades. The Libyans want in but they did not pay the highest price back then so why would they do so now? Kenyans lose no matter how you slice or dice it!
Solution: The GoK should let KPRL sell shares in KPRL to the Kenyan public to retain Kenyan ownership. So the GoK will be co-owners with Essar & the Kenyan public. It would be unsafe to cede the refinery to the Libyans who will favour OilLibya vs the other Oil Marketers e.g. Kenol, Total, etc.
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- ► 2011 (44)
- Disinvestment in Kenya
- Kenya needs to emulate India's dynamism...
- Why is Kenyan labour costly vs Chinese labour?
- GoK spends & naps while Kenyans suffer...
- A Tale of two(2) SafCon Prospectuses
- Zimbabwean Follies... Worth a laugh!
- Is Africa politically regressing?
- KAA needs to be privatized
- More stockbrokers to bite the dust?
- Coldtusker becomes a TRILLIONAIRE...
- Banks on a roll...
- Back to Basics - Economics, Finance and Wealth Cre...
- Ah, the Kenya we know...
- Zim$ at 123,000,000 per US$
- Zim$ drops faster than a rock!
- KQ's fortunes looking up...
- Safaricom IPO(OFS) gets murky.
- Suicide Jumper
- Kenya - Corruption back on track...
- Zimbabwe Billionaire...
- Bloggers pissed off at bloated cabinet...
- Is Mungiki related to PNU?
- List of Cabinet Ministers + my grades!
- 42 Ministers + prez + pm + 2 deputy pms = too many...
- Again - Apple TV is not GTV
- Kenyans sing the Indian National Anthem
- Coldtusker declared a Billionaire
- Tanzanians screwed by Bank of Tanzania!
- sam ' I can't count' kivuitu at it. Again.
- CMA wants to kill of Venture Capital Funds
- The "not so good" happenings in Kenya...
- Lower those brokerage fees!
- India Grows Up...
- bob ' the murderer' mugabe tries populism again......
- KPLC - Change the law!
- Kenya's economy suffers major hit
- Kenyan politicians killing the Golden Goose...
- New Cabinet Lineup...
- Kenya's New Cabinet is neither Lean nor Clean...
- Another pathetic article from Business Daily
- (Politically) Is Zimbabwe another Kenya?
- Kenyan gov't is senile...
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