Kenya Power has marked a significant turnaround in its financial performance, reporting a net profit of KES 319 million for the half-year period ending December 2023. This positive shift contrasts starkly with the KES 1.1 billion net loss recorded during the preceding half-year period.
The surge in profitability is underpinned by a robust 31% surge in revenue from electricity sales, which soared to KES 113.6 billion. A notable aspect contributing to this growth was the adoption of a cost-reflective tariff coupled with an intensified effort to expand customer connectivity.
Joseph Siror, Kenya Power’s Managing Director & CEO, attributed the upturn to strategic endeavors aimed at bolstering customer base and sales.
“I am glad to note that our sales growth was driven by our deliberate effort to grow our customer numbers, having surpassed our connectivity target for the half-year period by 13.87% with a total of 225,000 new customers to the grid,” remarked Siror.
A pivotal facet of Kenya Power’s operational evolution is the increased utilization of renewable energy sources, which witnessed a notable 240GWh upsurge in dispatched electricity units. Consequently, reliance on thermal sources dwindled by 93GWh, translating to a KES 2.05 billion reduction in fuel cost charge on customer bills.
Despite these gains, the company encountered a surge in finance costs, primarily attributed to unrealized foreign exchange losses on loan revaluations due to the depreciation of the Kenyan shilling. Siror expressed optimism, stating, “We are happy to note that the Shilling is gaining against the Dollar and other major currencies in the current period.”
Operating costs also witnessed an uptick during the review period, reaching KES 19.7 billion. This escalation was propelled by higher electricity wheeling charges and an increase in depreciation, compounded by elevated staff costs incurred to enhance operational efficiency and service delivery.
To consolidate its newfound profitability, Kenya Power pledges to intensify initiatives aimed at augmenting sales, optimizing revenue collection, and enhancing system efficiency. “While we are keen to onboard new customers, our immediate focus is to enhance customer experience,” reiterated Siror.
Established in 1922, Kenya Power has steadily expanded its transmission and distribution network, now spanning over 306,000 kilometers. As of December 2023, the company boasted over 9.5 million accounts, extending access to electricity to over 76% of the nation’s population.
