The Kenya Power and Lighting Company PLC (Kenya Power) on Friday 29th October 2021 announced a profit before tax of Ksh8.2 billion for the period ending 30th June 2021, representing a 216% growth compared to a loss before tax of Ksh7.04 billion. The strong performance was mainly driven by growth in sales and revenue, as well as a double digit reduction in costs and expenses.
Unit sales for the year under review recorded a 5% growth from 8,171 GWh to 8,571 GWh which was mainly driven by 716,206 new customer connections who contributed an additional 400 GWh, and a rebound of the economy from the effects of the Covid-19 pandemic. All customer segments recorded growth, with commercial and industrial growing by 4.8%, small commercial by 5.1%, domestic customers by 4.9% and street-lighting by 10.2%.
Revenue recorded 8.2% jump from Ksh133.3 billion the previous year to Ksh144.1 billion, mainly due to an expanded customer base, and heightened revenue protection activities driven by increased field presence.
Vivienne Yeda, chairman of the Board of Directors, noted that the strong performance was a credible indicator that the turnaround strategy, rolled out the previous financial year, was on course. The strategy focuses on five core focus areas of improving customer experience, growing sales, enhancing revenue collection, enhancing system efficiency, and prudent cost management.
“We are pleased with this set of results because it is a clear demonstration that the investments we have made in driving a strong performance by the core business lines are beginning to bear fruits. We are cognisant of the fact that a lot more needs to be done to fully transform Kenya Power into a 21st century organisation,” said the chairman.
In the year under review, Kenya Power also undertook greater cost management and resource optimisation initiatives. As a result, operating expenses dropped by 17% from Kshs.47.8 billion to Ksh39.9 billion mainly due to a reduction in provisions for trade and receivables from Kshs.3.27 billion the previous year to Kshs.354 million, which was mainly driven by accounting for revenue, and enhanced revenue collection initiatives.
Finance costs also registered a 27% reduction from Kshs.12.5 billion in FY2020/21 to Ksh9 billion due to a decrease in interest on loans and overdrafts as a result of a Ksh20.26 billon repayment of commercial loans which included the partial conversion of overdrafts into a term loan.
System losses, which had risen to 25.21% in the first half of the year, were reduced to 22.7% in the second half. Overall system efficiency stood at 76.05% as at the end of June 2021. Kenya Power is planning to increase the uptake of the self-service platform, *977#, which with over 2 million registered users recorded over 19.6 million transactions in the period.