Kenya Power posts Sh7.5bn profit on electricity sales rise

Kenya Power has announced a 1.6 per cent rise in net profit for the year ended June 30 on the back of increased electricity sales.

The utility firm’s net profit stood at Sh7.5 billion for the full year compared to Sh7.4 billion the year before. Its electricity sales grew by 3.6 per cent from 7.1 billion units in the previous year to 7.3 billion units in the period under review.

“This, combined with an improved average yield, led to 11.9 per cent increase in sales revenue, from Sh77.8 billion the previous year to Sh88 billion,” said Kenya Power chief executive Ben Chumo in a statement.

The firm’s transmission and distribution expenditure increased by 18.3 per cent from Sh24.2 billion incurred in 2015 to Sh28.6 billion in 2016.

“The increase is due to growth of the company’s electricity network which led to increased operational expenses,” said Mr Chumo.

The power purchase cost excluding fuel cost and foreign exchange increased by Sh6.9 billion to Sh51.4 billion due to increase in energy charges resulting from growth in unit purchases, he noted.

READ: Kenya Power on the spot over rising electricity cost

However, the fuel cost decreased by Sh13 billion to Sh12.7 due to increased reliance on geothermal and hydro sources during the year.

The company has been undertaking a countrywide network upgrade and expansion during the year, resulting in an 18.3 per cent increment in transmission and distribution expenditure to Sh28.7 billion.

“The company has started to realise gains from heavy investments made in the years to grow and sustain business as evidenced by an expanded footprint across the country, improved customer experience and growth in asset base, besides enhanced reliability and quality of power supply,” said Mr Chumo.

As a result of the performance, the directors have recommended that, in addition to the interim dividend of Sh0.20 paid at half year, a full and final dividend of Sh0.30 per ordinary share be paid for the year.