Kenya Power announce Sh9.97billion in half year net profit for 2023/24
The impressive financial performance was driven by increased electricity sales, lower cost of sales and reduced finance costs supported by the stability of the Kenya Shilling against major foreign currencies
Kenya Power has announced a Ksh 9.97 billion profit after tax for the half year ended 31st December 2024 compared to Ksh 319 million in the half year ended 31st December 2023, reflecting a 97.4% increase.
Profit before tax stood at Ksh14.1billion, an increase of Ksh 13.5 billion compared to Ksh 538 million recorded in the same period of the previous year.
The impressive financial performance was driven by increased electricity sales, lower cost of sales and reduced finance costs supported by the stability of the Kenya Shilling against major foreign currencies.
During the period, electricity sales increased by 5% to 5,506 GWh compared to 5,225 GWh recorded during a similar period in the previous financial year. Despite the growth in electricity sales, power purchase costs reduced by Ksh11.65 billion, riding on the strengthening of the Kenya Shilling against major foreign currencies in which majority of Power Purchase Agreements are denominated.
“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 supported by the availability of critical materials including meters and transformers,” said Kenya Power’s Managing Director & CEO, Dr Joseph Siror.
Finance costs reduced by Ksh 13 billion to Ksh 1.97 billion in December 2024 from KSh.15 billion in December 2023. The reduction is attributed to strengthening of the Kenyan Shilling against major foreign currencies which account for 90 of the Company’s loan portfolio. This was further supported by a reduction in loan balance due to continued repayment.
Despite a significant reduction in finance costs as well as power purchase costs, the Company recorded a Ksh 4 billion increase in operating expenses, mainly arising from depreciation and maintenance costs to support the expanded network.
However, the working capital improved by 30% from negative KSh.27.44 billion in June 2024 to negative Ksh 18.99 billion in December 2024.
“At the core of our strategy is a commitment to powering people for better lives while maintaining a sharp focus on operational excellence. Looking ahead, we are committed to sustaining our improved financial performance through targeted initiatives that enhance efficiency and diversify revenue streams to drive long-term growth,” said Dr Siror.
In this regard, the Company is advancing the transformer metering project to improve energy balance and system efficiency. Additionally, the Company is positioned to capitalise on the anticipated lifting of the moratorium on new power generation contracts to increase electricity sales as peak demand increases.
As part of its revenue diversification plan, the Company has commenced implementation of the Government’s Digital Superhighway project which involves rolling out last-mile fibre optic cable connectivity to approximately 6,000 government institutions nationwide.
Following the positive performance, the Board of Directors has announced an interim dividend of KSh.0.20 per share.
