Safaricom at 21...it probably worth 10B dollars or 1 trillion shs ..Gov sell it

[RV Pundit]

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Treasury should consider divesting from this at some point and use the money to build infrastructure.
http://www.businessdailyafrica.com/Safaricom-touches-new-high-of-Sh21-as-investors-eye/539552-3347288-7h5646z/index.html

I think treasury still have about 25% - that is about enough to complete LAPSET phase 1 or to build maybe 30,000kms  of tarmac all over kenya.

I don't see the strategic value of holding onto this.

Gov if they were to sell 25% - will probably get 250B kshs - and Safaricom will be bought off the same day.

[hk]

Treasury should consider divesting from this at some point and use the money to build infrastructure.
http://www.businessdailyafrica.com/Safaricom-touches-new-high-of-Sh21-as-investors-eye/539552-3347288-7h5646z/index.html

I think treasury still have about 25% - that is about enough to complete LAPSET phase 1 or to build maybe 30,000kms  of tarmac all over kenya.

I don't see the strategic value of holding onto this.

Gov if they were to sell 25% - will probably get 250B kshs - and Safaricom will be bought off the same day.

The beauty of this is how much value has been created from the moribund telekom . Unloading it to the market is great idea but it has to be done gradually to avoid the share from tanking and wiping out the value. Furthermore the proceeds ought to be ring fenced , lapset would be ideal. However i think treasury mandarins are reluctant to unload cause the dividends treasury get annually this year 22b.

[RV Pundit]

Dividend is nothing compared to the taxes. Treasury need to focus on how they can tax the behemoth..and not be part of it's ownership. yeah we need to dilute the shareholding slowly and ring-fenced it for some project. Lapset is one...though I am doubtful about it's viability..until we confirm oil deposit in turkana and kerio valley...something like 2 billion barrrels.

I think using the money to fund the failed Road Annuity programme would be a game changer  - imagine new 30,000kms of tarmac - that will really open up this country.

The beauty of this is how much value has been created from the moribund telekom . Unloading it to the market is great idea but it has to be done gradually to avoid the share from tanking and wiping out the value. Furthermore the proceeds ought to be ring fenced , lapset would be ideal. However i think treasury mandarins are reluctant to unload cause the dividends treasury get annually this year 22b.

[hk]

Dividend is nothing compared to the taxes. Treasury need to focus on how they can tax the behemoth..and not be part of it's ownership. yeah we need to dilute the shareholding slowly and ring-fenced it for some project. Lapset is one...though I am doubtful about it's viability..until we confirm oil deposit in turkana and kerio valley...something like 2 billion barrrels.

I think using the money to fund the failed Road Annuity programme would be a game changer  - imagine new 30,000kms of tarmac - that will really open up this country.

I totally agree. The small many projects like the road tarmacking would have more of a economic return than one grandiose project. I think oil will start flowing next yr via road from lokichar to eldoret then railway http://www.nation.co.ke/news/Cabinet-approves-plans-to-produce-oil-in-Lokichar/1056-3341126-q4h7pw/index.html . Basically we're taking the route of america where fracking in dakota the oil is transported via railway. The Lapset project can be scaled down to just roads and then railway, finally pipeline if there's enough oil in kenya and Ethiopia.

[RV Pundit]

Lapset doesn't make much economic sense except a way for opening the country. 600M barrels are good to go - will makes us self-sufficient -- but for export - we need tullow to do more exploration. Jubilee project to jumpstart oil production is just great. These guys have done lots of great things. The road annuity and corruption is the only failure I can see...and hopefully they will deal with this very soon.

I totally agree. The small many projects like the road tarmacking would have more of a economic return than one grandiose project. I think oil will start flowing next yr via road from lokichar to eldoret then railway http://www.nation.co.ke/news/Cabinet-approves-plans-to-produce-oil-in-Lokichar/1056-3341126-q4h7pw/index.html . Basically we're taking the route of america where fracking in dakota the oil is transported via railway. The Lapset project can be scaled down to just roads and then railway, finally pipeline if there's enough oil in kenya and Ethiopia.