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Thursday, July 31, 2008

KPLC = mini-KRA

KPLC is in a bind...

The firm has done rather well during the past 3 years - since the Manitoba guys came in - but there are dark clouds on the horizon.

KPLC has the following:
  • Oodles of cash on the balance sheet
  • Cash generating/collection capability
  • Large procurement needs
So... add all this up and it is attractive to anyone who wants to rip it off... Samuel Gichuru was one of the few kikuyus who survived under dan 'thieving' moi coz gichuru knew how to spread the largesse - at the ordinary Kenyan's expense!

Things got so bad that the GoK was forced to appoint the Canadians - if KPLC wanted financing - to run the firm. After bringing KPLC back into the light... they are being dumped...

Furthermore, the GoK & KRA have made KPLC one of their 'collectors'... KPLC has to use fuel to produce electricity... the fuel is heavily taxed... and this is passed onto consumers making KPLC look like the bad guy! KPLC is also forced to charge VAT thus increasing the burden on the consumers & KPLC...

So KPLC has become a tax collector of sorts for KRA & GoK...

9 comments:

ka-investor said...

No wonder they don't allow for private investment in electricity production. its a cash-cow for the government. So what will happen to the rural electrification program that they have spend so much time and money on?

coldtusker said...

My concern is not the cash cow for the GoK as much as the potential for another massive rip-off as cronies take it over...

REP is supposed to be funded by the GoK though KPLC acts as the implementation entity...

MainaT said...

GoK made a mess of this timing-wise but not introducing it last yr when it was clear that KPLC was not charging consumers the true cost of KenGen's production.
CT- still waiting for a response on I&M...

coldtusker said...

MainaT: I replied to ur I&M e-mail... did you delete it?

I will re-send it today...

GoK was playing politics last year... idiots!

Anonymous said...

I won't agree with your argument of Gichuru spreading the largesse to the ordinary 'mwananchi' if he robbed, he robbed ! Plain & simple
Abt KPLC increasing the elec rates, it's the usual willing buyer willing seller...if you can't pay for it then hell get urself a kerosene lamp or as some of us decided,get solar panels to help you heat water & other simple power-saving alternatives.
Who said KPLC have to be the 'only' power suppliers ? Open your eyes and minds !

coldtusker said...

Anon - Yes, he robbed... what I meant was he bought political goodwill by spreading the stolen funds amongst his 'buddies' while the rest of Kenyans suffered... I do not condone his theft...

On alternates... I agree... The catch is that GoK is responsible for 50% of the power bill by adding VAT, taxes and duties!

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