Kenya Power half year profit hits Ksh.3.8 billion from Ksh.138 million

The notable rise in profitability is attributable mostly to higher revenues from electricity sales which hit Ksh.83.6 billion from Ksh.69 billion in December 2020.

“This was driven by an increase in customer connectivity, as well as improved supply quality and reliability due to enhanced preventive maintenance works, network refurbishment and accelerated faulty meter replacements,” Kenya Power said on Friday.

At the same time, the utility company says it has improved its system efficiency over the six months by 2.33 per cent to 77.13 per cent.

During the six months, overdue customer debt fell for the first time in five years recording a Ksh.900 million reduction in the arrears from enhanced field presence and government intervention with State agencies.

In the second half of its fiscal year to June, Kenya Power says it will primarily focus recoveries on domestic customers and small businesses who account for an estimated three-quarters of the pending bills.

Meanwhile, Kenya Power’s net operating costs dropped by 5.5 per cent to Ksh.19 billion from Ksh.20.1 billion as the company enhanced its cost management and resource optimization initiatives.

Kenya Power finance costs only rose marginally by three per cent to Ksh.6.8 billion from Ksh.6.6 billion from unrealised Foreign exchange losses from the marginal depreciation of the Kenyan Shilling.

The utility company has cut its trade and other payables by over Ksh.4 billion while clearing overdrafts estimated at Ksh.3.6 billion.

The board of Kenya Power has not recommended the payment of an interim dividend for the period as it seemingly keeps a cash preservation stance.

Kenya Power closed the period with a cash position (cash & cash equivalents) of Ksh.8.3 billion from Ksh.1.7 billion a year earlier.