Kenya Power Shares Tumble as Investors Stare at Reduced Profits

Kenya Power  Shares Prices dived 5.9% to KSh 14.25 when the Nairobi Securities Exchange(NSE) opened for trading Tuesday as investors reacted to the firm’s earnings report, which showed decline in profitability, revenue and dividend yield.

Kenya Power, the sole electricity distributor in Kenya, saw key numbers moving south, for the financial year ended 30^th June 2025, with Revenues declining 5% to KSh 219.8 billion while Gross Profit was down 7.3% to KSh 74.6 billion. This is despite strong half-year performance announced 8 months ago.

Cost of Sales fell KSh 3.9% to KSh 144.7 billion with Kenya Power Operating Profit declining 4.9% to KSh 39.5 billion. Financing costs grew aggressively to KSh 4.7 billion from KSh 682Million in 2024.

Kenya Power Profitability Decline creates negative sentiments

Kenya Power Net Profit declined 18% to KSh 24.5 billion as signalled by its Earnings per Share(EPS) which declined to KSh 12.54 from KSh 15.41 in the 2023/24 financial year.

The Utility firm’s shareholders will receive a final dividend payouts of KSh 1.00 per share made up of interim dividend of 20 cents and final dividend of 80 cents.

Analysts warn that Kenya Power’s decline in revenues and net profits may negatively impact perceived profitability. Additionally, the 6.6% dividend yield might not meet investor expectations, potentially driving negative sentiments.

In a note to shareholders, Kenya Power attribute the decrease in profitability to lower tariff yields and reduced forex recoveries.

Despite the decline, the utility firm said its earnings remain approximately three times higher than any year before last year, underscoring its strong strength.

Revenues dropped 5.1% to KSh 219.29 billion, marking the first drop since 2013 and ending a 12-year growth run. However, revenue has grown significantly over the long term, increasing by 678% since 2001.

Kenya Power’s shareholders’ funds crossed the KSh 100 billion mark for the first time, jumping 25% to KSh 109.34 billion. This puts the firm among Kenya biggest equity owners with shareholders rewarded a handsome dividend cheque made up of a final dividend of KSh 0.80 per share, bringing the total payouts to KSh 1.00 per share.

The firm’s balance sheet size grew 8.6% to KSh 389.04 billion in the financial year ended June this year, boosted by huge cash pumped to upgrade the grid and old infrastructure.

The most recent activity involved launch of the firm’s  revamped digital service platforms to enhance the experience of more than 10 million electricity customers.

Alongside the MyPower App and USSD *977#, the firm has also unveiled an AI Chatbot dubbed Nuru that will respond to customers’ queries on the Company’s website and Facebook Page KenyaPowerCare, as well as allow them to report incidences such as power outages, and chat with a customer care representative.

The MyPower App has been redesigned with a modern interface, making it more user-friendly with additional features such as managing multiple accounts (for landlords), monitoring monthly token use, as well as a direct chat support via the WhatsApp Channel.

Additionally, the revamped App allows customers to purchase tokens, pay their electricity bills, self-read their post-paid meters, lodge billing complaints and access scheduled power interruptions.

The largest individual shareholders at Kenya Power include MP Ndindi Nyoro with a 1.67% stake or 32.5 million shares, the Hirani brothers with 23.8 million shares, Suresh Varsani with 84.7 million shares, Wilson Kimaiyo 84.7 million shares, James Ooko 85.8 million shares, Kipkales Chetalam Kale with shares valued at close to KSh 77 million, John Njuguna Ndungu with shares worth some KSh 55.9 million, Mohammed Abdullahi Sharawe with a KSh 63 million stake and Mama Ngina Kenyatta-the 4th largest individual shareholder with a 0.11% stake.