Kenya Power profit falls to Sh24.5 billion despite higher electricity sales

Kenya Power has recorded a profit after tax of Sh24.5 billion for the 2024–2025 financial year, reflecting an 18.7 per cent drop from the previous year’s Sh30.1 billion.

The performance was dampened by lower electricity tariffs, reduced foreign exchange recoveries, and higher financing expenses arising from currency stabilisation efforts.

The company, however, posted growth in electricity sales, which increased by 887 GWh to 11,403 GWh, representing an 8 per cent rise. Unit purchases also went up by 787 GWh during the period.

At the same time, the cost of sales fell by 4 per cent from Sh150.6 billion to Sh144.6 billion, leading to savings of Sh5.94 billion. These savings were mainly attributed to the strengthened shilling against key foreign currencies used in power purchase agreements.

Managing director and CEO Joseph Siror said the steady reduction in base tariffs over the past two years has made electricity more affordable and boosted consumption.

“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 will make it more affordable for our customers to consume more electricity. In turn, this will positively impact the company as we can leverage the 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,” he said.

Operational costs decreased by Sh3.86 billion, primarily due to lower expected credit losses, supported by favourable economic conditions and improved customer payment behaviour.

The board has recommended a final dividend of Sh0.80 per ordinary share, in addition to an interim dividend of Sh0.20 per share paid earlier in the year.

“For the second year in a row, the company is paying out a dividend to investors, and we remain confident that, as our financial performance improves, payment of dividends will be sustained.  Dividend payment has significantly strengthened investor confidence in the company,” said board chairperson Joy Brenda Masinde.

She added that investor sentiment had improved significantly, with the company’s share price rising from Sh1.38 in December 2023 to over Sh15, an increase of more than 900 per cent.

“This performance reflects renewed investor confidence in our transformation and in our capacity to deliver sustainable growth and long-term value,” she said.

Kenya Power also expanded its customer base, surpassing 10 million customers after connecting 401,848 new users during the year.

Transmission and distribution efficiency improved to 78.8 per cent from 76.8 per cent, supported by system reinforcement, grid upgrades and loss reduction efforts.

The company’s strategic focus for the coming years includes modernising its network to reduce losses, enhancing liquidity, accelerating customer connections and expanding digital systems to improve efficiency.

“We will continue to reinforce financial sustainability through prudent cost management, optimised capital allocation and robust revenue growth. By executing these priorities, Kenya Power is well positioned to power the nation’s growth and create enduring value for its shareholders,” management said.

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