The Kenya Power and Lighting Company (KPLC) has announced a net profit of Kes.30 billion for the financial year ending June 30, 2024.
During a financial results announcement in Nairobi on Tuesday, October 29, Energy Principal Secretary Alex Wachira revealed that KPLC will distribute dividends to its shareholders for the first time in over seven years.
“This year, Kenya Power has returned to profitability after facing numerous challenges in the energy sector and the economy. The company declared a Ksh30 billion profit after tax, which is a significant achievement given the capital-intensive nature of power generation and distribution,” Wachira stated.
“Kenya Power will issue a dividend to shareholders for the first time in over seven years, providing a return on investment to the Kenyan taxpayer. The government is committed to addressing these operational challenges and enhancing service delivery.”
KPLC reported a 21 percent increase in electricity sales for the financial year 2023/24, rising to Kes.231.12 billion from Kes.190.98 billion the previous year. The company attributed this growth to improved sales, particularly from 447,251 new customers connected to the power grid.
Additionally, KPLC disclosed a decrease in financial costs by Kes.24.84 billion, credited to an unrealized foreign exchange gain of Kes.7.88 billion.
“This gain resulted from the appreciation of the Kenyan shilling against both the US dollar and the Euro, which together represent approximately 90 percent of the company’s loan portfolio,” KPLC explained.
The company also noted an increase in power purchase costs from Kes.143.58 billion to Kes.150.61 billion and a rise in operating expenses from Kes.37.28 billion to Kes.46.28 billion.
“This increase stems from a 92 percent rise in wheeling charges related to our expanding transmission network and the hiring of additional technical staff. Through careful cost management and zero-based budgeting, we aim to maintain stable margins despite inflationary pressures,” stated Kenya Power CEO Dr. Joseph Siror.
