Kenya Power has reported a profit after tax of Ksh 24.47 billion for the 2024/25 financial year, down 18.7 per cent from the Ksh 30.08 billion it earned the previous year.
Despite the decline, the power distributor celebrated record electricity sales, an expanding customer base, and an extraordinary surge in its share price.
In a press statement released on Tuesday, October 7, Managing Director and CEO Dr. (Eng) Joseph Siror said the company’s focus on affordable electricity and improved efficiencies had boosted performance.
“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 makes electricity more affordable. In turn, it benefits us because we can leverage 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,” Dr Siror said.
Electricity sales grew by 8 per cent, rising by 887 GWh to 11,403 GWh. Total unit purchases increased by 787 GWh over the same period. At the same time, the company’s cost of sales fell by 4 per cent, from Ksh 150.6 billion to Ksh 144.6 billion, delivering Ksh 5.94 billion in savings.
According to the utility, the savings were driven by the stability of the Kenyan shilling against major foreign currencies in which most Power Purchase Agreements are denominated.
Operating expenses also decreased by Ksh 3.86 billion, mainly due to lower expected credit losses as customers kept up with payments.
Kenya Power marked a major milestone in customer connections, crossing the 10 million mark after bringing 401,848 new customers on board during the year.
The company also improved its distribution and transmission efficiency to 78.79 per cent, up from 76.84 per cent a year earlier. The gains were linked to ongoing grid upgrades, system reinforcement, and loss reduction efforts.
Investors are also reaping rewards as the company’s board recommended a final dividend of Ksh 0.80 per ordinary share, in addition to an interim dividend of Ksh 0.20 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, dividend payments will be sustained. Dividend payment has significantly strengthened investor confidence in the company,” Kenya Power Board Chairperson Joy Brenda Masinde said.
She added that investor faith in the company’s turnaround has been reflected in its soaring share price.
“The Kenya Power share price has appreciated by more than 900 per cent from a low of Ksh 1.38 in December 2023 to over Ksh 15. This reflects renewed investor confidence in our transformation and our capacity to deliver sustainable growth and long-term value,” Masinde said.
