Kenya Power has announced a profit after tax of KShs.24.47 billion for the financial year 2024/25, driven by lower costs of sales, higher electricity unit sales, and system efficiencies.
The company’s profitability, however, declined by 18.7% compared to
the Kshs.30.08 billion in the previous financial year.
The company’s profitability was buoyed by an increase in electricity sales, which rose by 887 GWh, to 11,403 GWh, an 8% increase in sales, while total unit purchases grew by 787 GWh.
The overall cost of sales declined by 4% from KShs.50.6 billion to KShs.144.6 billion, resulting in a KShs.5.94 billion saving.
The savings were realized due to the stability of the shilling against major
foreign currencies in which most Power Purchase Agreements (PPAs) are denominated.
“The base tariff has been coming down over the last two years, reflecting the government’s commitment to lowering the cost of electricity. This is a positive move for consumers as it will make it more affordable for our customers to consume more electricity. In turn, this will positively
impact the company as we can leverage the economies of scale to remain profitable. You can already see that impact in our results this year as we sold more units at a lower price and remained profitable,” said Kenya Power MD and CEO Dr. (Eng) Joseph Siror.
Operating expenses decreased by KShs.3.86 billion due to lower expected credit losses
reflecting prevailing macroeconomic conditions and customer payment behavior.
The utility’s Board of Directors has recommended a final dividend of Ksh 0.80 per ordinary share, having already issued an interim dividend of KShs.0.20 per share paid out in the first half of the year.
“For the second year in a row, the company is paying out a dividend to investors, and we remain confident that, as our financial performance improves, payment of dividends will be sustained.
Dividend payment has significantly strengthened Investor confidence in the company. The
Kenya Power share price has appreciated by more than 900% from a low of KShs.1.38 in
December 2023 to a remarkable price of over KShs.15. This performance reflects renewed
investor confidence in our transformation and in our capacity to deliver sustainable growth and
long-term value.” Said Kenya Power Board Chairman Joy Brenda Masinde.