Kenya Power has increased its interim dividend by 50 percent to Sh0.3 per share for the half year to December 2025 as the company continued to enhance payouts to shareholders amid profit growth.
The company, which had paid an interim dividend of Sh0.2 per share a year earlier, saw its net profit rise to Sh10.4 billion from Sh9.9 billion.
The new dividend will be paid on March 27 to shareholders who will be on the register on February 23.
The interim dividend declared last year was the first that the Nairobi Securities Exchange-listed company had declared in nine years.
Kenya Power's return to profitability and dividend payments has seen its share price at the NSE rally to Monday's Sh15.2 from lows of below Sh2 in August 2024.
The company attributed its stronger performance in its half-year results to improved electricity sales, which grew by 6.9 percent from Sh107.42 billion to Sh114.87 billion, driven by higher electricity demand and improved distribution efficiency.
“The continued growth in electricity sales, supported by rising demand, improving distribution efficiency, combined with lower finance costs, lay out a solid foundation for improved profitability, enhanced service delivery, and financial sustainability into the future,” said the utility firm in its financial statement.
“Looking ahead, we will safeguard supply adequacy as demand grows and accelerate our loss reduction programme. We are also advancing our grid modernisation and digitisation projects to improve service reliability and efficiency, enhance customer experience, and support sustainable growth."
Operating expenses rose by Sh1.43 billion, from Sh23.74 billion to Sh25.16 billion, on account of higher provisions for expected credit losses following growth in customer debt levels, increased depreciation arising from the capitalisation of completed network projects, and staff-related cost movements.
Finance costs, which dropped significantly in the previous period, reduced further by Sh492 million, reflecting lower interest expenses following scheduled loan repayments and reduced debt levels, said the power distributor.
The utility firm said that its financial health strengthened after it successfully lowered its total debt.
Total borrowings reduced by six percent to Sh84.23 billion as at December 31, 2025, as Kenya Power continued to benefit from a strong shilling.
Kenya Power loans are denominated in foreign currency mainly the dollar and euro, highlighting why the company was one of the biggest gainers in the wake of the shilling’s rally from the start of last year. About 90 percent of Kenya Power’s loans are in foreign currency.
The firm had been leaning on the moratorium window to attain sustainability in annual debt service, improving both its net cash position and working capital alongside its financial ratios. It now plans to retire all hard currency commercial debt in its books by June this year.
