Kenya Power Half Year Net Earnings Up 4.3% to KSh 10.4 Billion

Kenya Power’s half year 2025/26 financial results show its profit after tax rising 4.3% to KSh 10.4 billion, the utility firm rewarding its shareholders with an interim dividend of KSh 0.30 per share, a whopping 50% increase from the previous interim dividend of KSh 0.20 per share.

The interim dividend will be paid on or about 27^th March 2026 to shareholders on the register at the close of business on 23^rd February 2026.

Kenya Power made a half year pre-tax profit of KSh 14.83 billion in the six months’ period to 31^st December 2025 compared to KSh 14.06 billion reported in the period prior, an increase of KSh 769 million or 5%. The firm attributes this performance to higher electricity sales and reduced finance costs.

According to analysts at Ketu Capital, the higher interim dividend payout is a signal of improved confidence in the near-term cash flows, supported mainly by lower finance costs and better working capital management, rather than a step-change in operating margins. It reflects Kenya power balance sheet stabilisation, not an aggressive shift in dividend policy.

The utility firm’s strong financial performance show top-line growth, improving balance sheet discipline, an early benefit from efficiency initiatives-while cost pressures remain a structural constraint, according to investment analysts.

Kenya Power Revenues are up due to improved electricity sales

Kenya Power Revenues were up 6.9% to KSh 114.9 billion. This was driven primarily by a 10.5% increase in electricity unit sales, supported by improved distribution efficiency, which increased from 76.35% to 77.97%.

This indicates real demand recovery and better network performance, not just price adjustments. However, revenue growth lagged volume growth, signalling tariff constraints and pass-through limitations. Operating profit rose 2.2% to KSh 16.0 billion. Finance costs fell 25% to KSh 1.5billion.

While Kenya Power is selling more power, higher energy procurement costs, depreciation from completed network projects and elevated credit loss provisions are capping margin expansion. This keeps operating leverage muted.

Kenya Power Share Price Movement at the Nairobi Securities Exchange

Net profit rose 4.35, largely supported by a 25% drop in financing costs following a 6% reduction in total borrowings to KSh 84.23 billion. Earnings therefore improved from finance restructuring. This improves sustainability but also highlights that operational efficiency gains must deepen to unlock stronger upside.

Operating expenses increased by KSh 1.43 billion from KSh 23.74 billion to KSh 25.16 billion, due to higher provisions for expected credit losses following growth in customer debt levels, increased depreciation arising from the capitalisation of completed network projects and staff-related cost movements.

“Our half-year results reflect continued momentum in strengthening performance and building resilience through a stronger balance sheet. The continued growth in electricity sales, supported by rising demand, improving distribution efficiency, combined with lower finance costs, lay a solid foundation for improved profitability, enhanced service delivery and finance sustainability into the future,” said Kenya Power Board of Directors in a statement.

Kenya Power negative working capital improved from KSh 19.21 billion in June 2025 to KSh 12.54 billion in December 2025. This points to better collections, tighter cash management and improved liquidity resilience- a crucial factor for a utility with heavy capex and debt obligations.

“Kenya Power is not yet a high-growth story-but it is becoming a more predictable utility and for long-term investors, predictability is where rerating begins,” said CFA Dedan Maina, an investment consultant at Ketu Capital.

In its outlook, the utility firm says it will safeguard supply adequacy as demand grows and accelerate its loss reduction programme. The firm is also advancing its grid modernisation and digitisation projects to improve service reliability and efficiency, enhance customer experience and support sustainable growth.

Kenya Power share price was trading trading at KSh 15.20 at 9.33 am when markets opened  Tuesday 3rd February 2026. The counter has gained 12.9% year-to-date and 140% over the past year.  Investors at the Nairobi Securities Exchange(NSE) are now eyeing the handsome dividend payout that the utility firm has declared, in what many view as a capture strategy.

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