NAIROBI, Kenya, Oct 29 – Kenya Power has returned to profitability, recording Sh30 billion in earnings for the full year ending June 2024, recovering from a net loss of Sh3.19 billion in the previous year.
This was driven by increased electricity sales and reduced finance costs due to a stronger Kenyan shilling.
The utility firm reported a 21 percent rise in electricity sales, reaching Sh231.12 billion from Sh190.98 billion, boosted by 447,251 new customer connections and heightened economic activity, especially in the manufacturing sector.
Sales growth was strongest in the commercial, industrial, and domestic customer categories, up by 5.1 percent and 5.5 percent, respectively.
Kenya Power Managing Director and CEO Joseph Siror noted a reduction in finance costs by Sh24.84 billion, thanks to a Sh7.88 billion foreign exchange gain, compared to a Sh16.87 billion loss in the previous period.
The gain resulted from the Kenyan shilling’s appreciation against the US dollar and euro, currencies that make up 90 percent of the company’s loan portfolio.
“With revenue in Kenya shillings but most power purchases in foreign currencies, the shilling’s strength in the latter half of the year helped contain sales costs, enhancing gross margins,” Siror stated.
Power purchase costs rose to Sh150.61 billion, up from Sh143.58 billion, due to increased units purchased to meet higher demand and prevailing exchange rates.
This includes a 92 percent rise in wheeling charges for the expanding transmission network and additional technical staff hires to support operations.
To curb the rising incidence of vandalism driven by scrap copper demand, Kenya Power, with its 9.7 million customers, supports restrictions on scrap copper sales, having imported Sh27 billion worth of copper in 2023.
Linet Waite also contributed to this story
