Kenya Power has reported a half year net profit of Ksh 9.97 billion on account of lower finance cost the utility booked during the period.
In six months of the year to December 2024, Kenya Power saw its profit after tax rise by 3025pc from Ksh 319 million the firm reported over the same period in 2023 due to lower cost of sales and reduced finance costs which is attributed to the stability of the Kenya
shilling against major foreign currencies during the period under review.
During the period, the firm posted an 87pc decline in finance cost from Ksh 15 billion to Ksh 1.97 billion.
“This reduction is attributed to the strengthening of the Kenyan shilling against major foreign currencies, which account for 90pc of the loan portfolio, as well as a reduction in loan balances due to continued repayment. During the period, the company commenced repayment of the GoK On-lent loans that had remained on a repayment moratorium since March 2020,” said Kenya Power.
Higher consumption by consumers also saw Kenya Power report a 5pc increase in electricity unit sales from 5,225 GWh to 5,506 GWh. However, overall electricity revenue reduced by 5.4pc from Ksh 113.6 billon reported in 2023 to Ksh 107.4 billion last yer.
“This reduction is attributed to lower passthrough costs as the Kenya shilling remained stable during the period, and lower average yield as per the tariff reduction path embedded in the approved tariff,” the firm added.
Power purchase cost also registered a 14pc decline from Ksh 83 billion to Ksh 71.38 billion owing to a strong local currency against major foreign currencies.
Operating expenses rose by Ksh 4 billion, from Ksh 19.73 billion in 2023 to Ksh 23.74 billion on account of higher operational expenses including staff costs, depreciation and other maintenance costs incurred to support the expanded network.
For the first time in almost a decade, the power distributor declared an interim dividend of Ksh 0.20 per share.
