From left: KenGen acting finance and ICT director Mary Maalu, managing director Rebecca Miano and business and development director Moses Wekesa during investor briefing in Nairobi on Friday. PHOTO | SALATON NJAU
Kenya Power is now left with a trade payable to KenGen of Sh3.33 billion.
The power distributor in its profit warning cited subdued economic activity and prolonged electioneering period as being behind its earnings dip.
Amounts due to KenGen from Kenya Power on account of electricity purchase was Sh15.42 billion as at end of June last year, up from Sh8.3 billion in 2016.
Kenya Power #ticker:KPLC paid Sh18.57 billion to Kenya Electricity Generating (KenGen) #ticker:KEGN company in four months between July and October, cutting its debt for electricity received by about 85 per cent.
KenGen’s post balance sheet notes accompanying the recently released June 2018 financial results show that Kenya Power paid the amount between July and October.
“We are glad to report that, though trade receivables from Kenya Power stood at Sh21.88 billion as at 30 June 2018, at the time of releasing the results (post balance sheet), Sh18.57 billion had been received,” said KenGen managing director Rebecca Miano.
Kenya Power, which has already issued a profit warning indicating that it expects its net earnings for the financial year ended June 2018 to drop by at least a quarter compared to the previous year, is now left with a trade payable to KenGen of Sh3.33 billion.
The power distributor in its profit warning cited subdued economic activity and prolonged electioneering period as being behind its earnings dip.
Amounts due to KenGen from Kenya Power on account of electricity purchase was Sh15.42 billion as at end of June last year, up from Sh8.3 billion in 2016.
Kenya Power buys a mix of hydro, thermal, wind and geothermal-generated electricity from the State-owned KenGen and independent producers for onward sale to homes and businesses. KenGen then bills it every month for the power delivered.
In the 12 months to end of June 2018, KenGen’s energy sales increased by six per cent from 7,556 gigawatt hours (GWh) in 2017 to 7,989 GWh despite a persistent drought that affected water levels in hydro reservoirs in the first three quarters of the year.
This generation output accounted for 75 per cent of the power produced in the country, leaving independent power producers to supply 2,713 GWh.
Kenya Power had last year failed to pay KenGen Sh6.4 billion within the required 40-day credit window in line with their contract, prompting the intervention of top Energy Ministry officials. It had also failed to pay a further Sh473.5 million for over a year.
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