Kenya Power records Ksh.9.97 billion half-year net profit

Kenya Power has recorded Ksh.9.97 billion in profit after tax for the last financial year ended December 31, 2024.

The company made the announcement on Friday, attributing the immense financial gain to increased electricity sales, lower cost of sales and reduced finance costs driven by the stability of the Kenya Shilling against major foreign currencies.

Kenya Power Managing Director and CEO Dr. Joseph Siror revealed that electricity sales increased by 5% to 5,506 Gigawatts per hour (GWh) compared to 5,225 GWh recorded during a similar period in the previous financial year.

“The increase in electricity unit sales was driven by higher consumption as a result of improved network reliability, a connection of new customers and improved outage resolution timelines supported by the availability of critical materials including meters and transformers,” said Siror.

He said that despite the growth in electricity sales, power purchase costs were reduced by Ksh.11.65 billion and finance costs by Ksh.13 billion to Ksh.1.97 billion in December 2024 from Ksh.15 billion in December 2023.

The reduction, he said, was due to the growth of Kenya Shilling against major foreign currencies in which the majority of Power Purchase Agreements are denominated.

Dr. Siror however noted that despite the reduction, the company recorded a Ksh.4 billion increase in operating expenses, mainly arising from depreciation and maintenance costs to support the expanded network.

The working capital improved by 30% from negative Ksh.27.44 billion in June 2024 to negative Ksh.18.99 billion in December 2024.

However, the working capital improved by 30% from negative Ksh.27.44 billion in June 2024 to negative Ksh.18.99 billion in December 2024.

“At the core of our strategy is a commitment to powering people for better lives while maintaining a sharp focus on operational excellence. Looking ahead, we are committed to sustaining our improved financial performance through targeted initiatives that enhance efficiency and diversify revenue streams to drive long-term growth,” said Dr. Siror.

He consequently said the company would be advancing the transformer metering project to improve energy balance and system efficiency.