Kenya Power has recorded a Sh30 billion net profit for the financial year ended June 30, 2024, compared to a loss of Sh2.8 billion the previous year.
The utility company has attributed its strong performance to the 21% growth in revenue in the industrial and commercial sectors and reduced finance costs as a result of the strengthening of the Shilling against major currencies during the review period.
Electricity sales grew by 21% to Shs 231 billion from Sh190 billion during the review period. “This growth is attributed to improved sales primarily from the 447,251 new customers connected to the grid during the year as well as increased economic activities,” reported Kenya Power in a statement.
The introduction of a revised cost-reflective base tariff structure in April of this year also contributed to increased sales.
“During the year, finance costs decreased by Sh24.84 billion, mainly due to unrealized foreign exchange gain of Sh7.88 billion, compared to a loss of Sh16.87 billion in the previous period,” the Company reported.
Operating expenses surged to Sh46.28 billion from Sh37.28 billion in the previous period. According to Kenya Power, the increase in expenditure was characterized by a 92% increase in wheeling charges for the expanding transmission network and the recruitment of new technical staff.
Following the improved financial performance, Kenya Power’s Board recommended a dividend of Sh0.70 per ordinary share for the year ending June 20, 2024. Upon approval, the dividend will be paid on or about January 31, 2025.
The Company expressed its commitment to delivering long-term value to investors through sustainable growth and operational excellence.
Related: Adani Group Signs Sh95 billion with KETRACO amid Controversy
