The Lower Eastern Times Opening The Third Eye
Related Articles
Kenya Power has returned to profitability, reporting a net profit of Sh319 million for the half-year period ending December 2023, a turnaround from the Sh1.1 billion loss recorded in the same period the previous year.
The company attributes this profitability to increased electricity sales and the implementation of a cost-reflective tariff, which boosted revenue. Revenue from electricity sales surged by 31 per cent to Sh113.6 billion during this period.
The company also initiated a Rapid Results Initiative (RRI) to expedite meter installations for new connections across the country, contributing to customer connectivity and electricity sales growth. The company exceeded its connectivity target by 13.87 per cent, adding 225,000 new customers to the grid.
Moreover, there was a notable increase in electricity units purchased and dispatched from renewable energy sources, leading to a reduction in thermal generation consumption and a consequent decrease in fuel cost charges on customer bills by Sh2.05 billion.
Despite the positive revenue growth and reduced fuel costs, finance costs surged by Sh7.6 billion, primarily due to unrealized foreign exchange losses on loan revaluations caused by the depreciation of the Kenyan shilling. Operating costs also rose by Sh1.7 billion, driven by higher electricity wheeling charges and increased depreciation, among other factors.
To maintain profitability, Kenya Power plans to enhance initiatives aimed at boosting sales, optimizing revenue collection, and improving system efficiency. The company aims to prioritize customer experience by investing in network infrastructure to enhance reliability, in line with its mission to provide affordable, clean, reliable, and sustainable power to Kenyan households and businesses.
