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When a CEO quits suddenly
Grand
#1 Posted : Wednesday, August 04, 2021 4:56:09 PM
Rank: Member


Joined: 1/3/2007
Posts: 22
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?
kawi254
#2 Posted : Wednesday, August 04, 2021 6:55:02 PM
Rank: Member


Joined: 2/20/2015
Posts: 423
Location: Nairobi
Grand wrote:
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?


Another 'monkey' from the same forest takes over.
obiero
#3 Posted : Wednesday, August 04, 2021 9:15:44 PM
Rank: Elder


Joined: 6/23/2009
Posts: 12,935
Location: nairobi
kawi254 wrote:
Grand wrote:
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?


Another 'monkey' from the same forest takes over.

A terrible sign. Remember Uchumi?
COOP 5,500 ABP12.6; HF 30,000 ABP 5.90; KCB 7,500 ABP 36; KQ 414,100 ABP 7.92
VituVingiSana
#4 Posted : Wednesday, August 04, 2021 10:00:36 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,559
Location: Nairobi
obiero wrote:
kawi254 wrote:
Grand wrote:
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?


Another 'monkey' from the same forest takes over.

A terrible sign. Remember Uchumi?

Uchumi, Mumias, KQ, etc d'oh!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mlennyma
#5 Posted : Thursday, August 05, 2021 9:41:10 AM
Rank: Elder


Joined: 7/21/2010
Posts: 6,116
Location: nairobi
obiero wrote:
kawi254 wrote:
Grand wrote:
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?


Another 'monkey' from the same forest takes over.

A terrible sign. Remember Uchumi?


but the nature of business and it's national importance not comparable to Uchumi and mumias
"Don't let the fear of losing be greater than the excitement of winning."
Kusadikika
#6 Posted : Thursday, August 05, 2021 4:30:49 PM
Rank: Elder


Joined: 7/22/2008
Posts: 2,686
VituVingiSana wrote:
obiero wrote:
kawi254 wrote:
Grand wrote:
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?


Another 'monkey' from the same forest takes over.

A terrible sign. Remember Uchumi?

Uchumi, Mumias, KQ, etc d'oh!


One big difference between KQ, Uchumi, Mumias and KPLC is that there are alternatives to the first 3. People can still travel even if KQ collapsed today, People are still shopping after Uchumi collapsed and people still have sugar even without Mumias. Currently only KPLC is licensed to sell power and if I am not wrong they also own the grid.

My thoughts are there is a major restructuring of the industry coming. Remember IMF mandated some assessment of some 18 State Owned Enterprises and they were categorised according to profitability (wacha I look for that report shortly). Soon after UON announced closure of colleges. My sixth sense tells me IMF will ask for privatization/sale of KPLC la sivyo they will demand power rates to be increased. Other possible scenarios, breakup of KPLC into regional power distributors or breakup of the company into divisions. The elephant in the room to be addressed will be the 100 billion+ debt on KPLCs books. If GOK converts that to equity then current private shareholder equity will be reduced to less than 1%.

https://www.treasury.go.ke/wp-co...f-State-Corporations.pdf
Ericsson
#7 Posted : Thursday, August 05, 2021 4:50:31 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,844
Location: NAIROBI
Kusadikika wrote:
VituVingiSana wrote:
obiero wrote:
kawi254 wrote:
Grand wrote:
What does the sudden news of kplc CEO quitting, portend to an already troubled kplc? In the states it is a bad sign but locally here could it be the beginning of better days for kplc?


Another 'monkey' from the same forest takes over.

A terrible sign. Remember Uchumi?

Uchumi, Mumias, KQ, etc d'oh!


One big difference between KQ, Uchumi, Mumias and KPLC is that there are alternatives to the first 3. People can still travel even if KQ collapsed today, People are still shopping after Uchumi collapsed and people still have sugar even without Mumias. Currently only KPLC is licensed to sell power and if I am not wrong they also own the grid.

My thoughts are there is a major restructuring of the industry coming. Remember IMF mandated some assessment of some 18 State Owned Enterprises and they were categorised according to profitability (wacha I look for that report shortly). Soon after UON announced closure of colleges. My sixth sense tells me IMF will ask for privatization/sale of KPLC la sivyo they will demand power rates to be increased. Other possible scenarios, breakup of KPLC into regional power distributors or breakup of the company into divisions. The elephant in the room to be addressed will be the 100 billion+ debt on KPLCs books. If GOK converts that to equity then current private shareholder equity will be reduced to less than 1%.

https://www.treasury.go.ke/wp-co...f-State-Corporations.pdf


There will be no breakup of KPLC.
Conversion of Gok debt to equity is an option but that comes with risks.
IMF/World Bank may bring a management team to run the company for a period of time.
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