Kenya Power has recorded a profit after tax of KShs.24.47 billion( equivalent of $188,957,528.91) for the 2024/25 financial year, driven by lower costs of sales, higher electricity unit sales, and improved system efficiencies.
However, the company’s profitability declined by 18.7% compared to the KShs.30.08 billion recorded in the previous financial year.
The growth in profitability was supported by an increase in electricity sales, which rose by 887 GWh to 11,403 GWh — representing an 8% increase in sales — while total unit purchases grew by 787 GWh. The overall cost of sales declined by 4%, from KShs.150.6 billion to KShs.144.6 billion, resulting in savings of KShs.5.94 billion.
The savings were largely attributed to the stability of the Kenyan shilling against major foreign currencies in which most Power Purchase Agreements (PPAs) are denominated.
“The base tariff has been coming down over the last two years, reflecting the government’s commitment to lowering the cost of electricity. This is a positive move for consumers as it makes electricity more affordable, encouraging higher consumption.
In turn, this will positively impact the company as we can leverage economies of scale to remain profitable. You can already see that impact in our results this year, as we sold more units at a lower price and still remained profitable,” said Kenya Power Managing Director and CEO, Dr. (Eng.) Joseph Siror.
The company’s operating expenses decreased by KShs.3.86 billion, mainly due to lower expected credit losses, reflecting prevailing macroeconomic conditions and improved customer payment behavior.
The utility’s Board of Directors has recommended a final dividend of KShs.0.80 per ordinary share, having already paid an interim dividend of KShs.0.20 per share in the first half of the year.
“For the second year in a row, the company is paying out a dividend to investors, and we remain confident that as our financial performance improves, dividend payments will be sustained.
Dividend payouts have significantly strengthened investor confidence in the company. The Kenya Power share price has appreciated by more than 900% — from a low of KShs.1.38 in December 2023 to over KShs.15.
This performance reflects renewed investor confidence in our transformation journey and our capacity to deliver sustainable growth and long-term value,” said Joy Brenda Masinde, Kenya Power Board Chairperson.
From a customer perspective, the company surpassed the 10 million customer mark, connecting 401,848 new customers during the period and expanding its total customer base to over 10.1 million.
Kenya Power also improved its distribution and transmission efficiency to 78.79%, up from 76.84% the previous year, driven by ongoing grid upgrades, system reinforcement, and loss reduction initiatives.
Source: https://energynewsafrica.com
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