Kenya Power has recorded a Sh9.97 billion profit after tax for the half year ended December 31, 2024, a significant turnaround for the once loss-making power utility.
The strong performance was driven by increased electricity sales, lower operating costs, and reduced finance costs, supported by the stability of the Kenyan Shilling against major foreign currencies.
During the period, electricity sales increased by 5 per cent to 5,506 GWh compared to 5,225 GWh in the same period last year.
Notably, power purchase costs declined by Sh11.65 billion, primarily due to a stronger Shilling, which reduced foreign exchange exposure for power purchase agreements denominated in foreign currencies.
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“The increase in electricity unit sales was driven by higher consumption as a result of improved network reliability, connection of new customers and improved outage resolution timelines,” said Kenya Power’s Managing Director and CEO Joseph Siror.
Finance costs also decreased significantly, falling from Sh15 billion in December 2023 to Sh1.97 billion in December 2024.
This reduction was primarily attributed to the strengthening of the Kenyan Shilling, which accounts for 90 per cent of the company’s loan portfolio, and a reduction in loan balances.
Despite a significant reduction in finance costs and power purchase costs, the Company recorded a Sh4 billion increase in operating expenses, mainly arising from depreciation and maintenance costs to support the expanded network.
However, the company’s working capital improved significantly, with a 30 per cent reduction from negative Sh27.44 billion in June 2024 to negative Sh18.99 billion in December 2024.
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“At the core of our strategy is a commitment to powering people for better lives while maintaining a sharp focus on operational excellence,” said Dr Siror.
Looking ahead, Kenya Power says it plans to capitalize on the anticipated lifting of the moratorium on new power generation contracts to increase electricity sales as peak demand increases.
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The company is also advancing the government’s Digital Superhighway project, rolling out last-mile fiber optic cable connectivity to approximately 6,000 government institutions nationwide.
Following this positive performance, the Board of Directors has announced an interim dividend of Sh0.20 per share.
