By TWV Business Desk
Kenya Power has announced a profit after tax of KSh24.47 billion for the financial year 2024/25, driven by lower costs of sales, higher electricity unit sales, and improved system efficiencies. However, the company’s profitability declined by 18.7 per cent compared to KSh30.08 billion recorded in the previous financial year.
The company’s performance was buoyed by an increase in electricity sales, which rose by 887 GWh to 11,403 GWh, representing an 8 per cent increase. Total unit purchases grew by 787 GWh. The overall cost of sales declined by 4 per cent, from KSh150.6 billion to KSh144.6 billion, resulting in a KSh5.94 billion saving. The savings were realised due to the stability of the 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 and allows customers to consume more power. In turn, this positively impacts 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 remained profitable,” said Kenya Power Managing Director and CEO Dr Joseph Siror.
Operating expenses decreased by KSh3.86 billion, attributed to lower expected credit losses, reflecting prevailing macroeconomic conditions and improved customer payment behaviour. The utility’s Board of Directors has recommended a final dividend of KSh0.80 per ordinary share, having already issued an interim dividend of KSh0.20 per share paid out in the first half of the year.
“For the second year in a row, the company is paying out a dividend to investors. We remain confident that, as our financial performance improves, dividend payments will be sustained. This move has significantly strengthened investor confidence in the company. Kenya Power’s share price has appreciated by more than 900 per cent, from a low of KSh1.38 in December 2023 to over KSh15. This performance reflects renewed investor confidence in our transformation journey and in our capacity to deliver sustainable growth and long-term value,” said Kenya Power Board Chairperson Joy Brenda Masinde.
From a customer perspective, the company crossed the 10 million customer mark, connecting 401,848 new customers and expanding its total customer base to over 10.1 million. Kenya Power also improved its distribution and transmission efficiency to 78.79 per cent, up from 76.84 per cent the previous year, driven by ongoing grid upgrades, system reinforcement, and loss reduction initiatives.
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