The Lower Eastern Times Opening The Third Eye
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Kenya Power has posted a net profit of Sh9.9 billion for the six months ending December 2024, marking a significant improvement from the Sh319 million profit during the same period last year.
This growth in profitability is attributed to lower sales costs, reduced finance expenses, and the stability of the Kenya Shilling against major currencies, as well as a 5% increase in electricity sales from 5,225 GWh to 5,506 GWh.
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The rise in electricity sales was driven by higher consumption due to improved network reliability, the addition of new customers, and faster resolution of outages, supported by the availability of essential materials like meters and transformers. However, total electricity revenue decreased by 5.4% from Sh113.5 billion in December 2023 to Sh107.4 billion in December 2024, largely due to lower passthrough costs and a reduction in tariff rates.
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Power purchase costs fell by Sh1.65 billion to Sh71.4 billion, benefiting from the strengthening of the Kenya Shilling and a more optimized generation mix. The company also purchased more renewable energy, with 6,603 GWh procured compared to 6,199 GWh in the previous period.
Operating expenses increased by Sh4 billion, rising from Sh19.7 billion to Sh23.7 billion, due to higher staff costs, depreciation, and maintenance expenses to support the expanded network. The company also began repaying government loans that had been on hold since March 2020.
Kenya Power’s working capital position improved by 30%, from a negative Sh27.4 billion in June 2024 to a negative Sh18.9 billion in December 2024. The company also declared an interim dividend of Sh0.20 per share.
Looking forward, Kenya Power plans to sustain its financial growth through initiatives aimed at improving efficiency, diversifying revenue sources, and supporting long-term expansion.
The company is also advancing projects like the transformer metering initiative to enhance energy balance and system efficiency, and is preparing to take advantage of the anticipated lifting of the moratorium on new power generation contracts to meet increasing peak demand.
