Kenya Power and Lighting Company PLC has reported a significant improvement in financial performance for the year ended June 30, 2024, with a profit after tax of KES 30.08 billion, compared to a loss of KES 3.19 billion in 2023. The utility company attributes this turnaround to increased revenue and effective cost management measures.
Kenya Power’s revenue from contracts with customers rose by 21% to KES 231.12 billion, driven primarily by higher demand in the commercial and industrial sectors. This revenue growth, coupled with a reduction in finance costs, boosted the company’s profit before tax to KES 43.67 billion, up from a loss of KES 4.43 billion the previous year.
In a statement, Kenya Power noted, “This performance was primarily driven by a 21% increase in revenue notably from the commercial and industrial sector, and decreased finance costs due to the strengthening of the Kenya Shilling against major global currencies.” The utility added that improved sales “mainly from the active 247,212 new customers” and revised tariff structures introduced in April contributed to the overall growth.
Operating expenses, however, rose to KES 46.28 billion, up 24% from the previous year. The increase is largely due to higher transmission and distribution costs, reflecting the ongoing investment in infrastructure to support Kenya’s growing energy demands. Kenya Power also cited provisions from the 2023 Finance Act and inflation-related adjustments as factors impacting costs.
The company’s cash position also saw growth, with cash generated from operating activities totaling KES 28.37 billion, compared to KES 32.65 billion the previous year. Kenya Power’s balance sheet remained robust, with total assets rising to KES 358.06 billion, up from KES 353.72 billion.
In light of this improved performance, Kenya Power’s Board of Directors has proposed a dividend of KES 0.30 per ordinary share, marking the first payout to shareholders since 2017. The dividend is subject to shareholder approval at the Annual General Meeting on February 2, 2025.
Kenya Power’s board expressed its commitment to maintaining its financial health and strengthening operational resilience. “We are focused on executing strategic initiatives that will further enhance customer experience, drive revenue, and leverage high-impact investment opportunities,” the company noted.
