Kenya Power has reported a decline in profit after tax to Sh24.5 billion for the year ended June 2025, marking an 18.7 per cent drop from the previous year’s Sh30.1 billion.
The dip was attributed to reduced electricity tariffs, lower foreign exchange recoveries, and increased finance costs associated with efforts to stabilise the local currency.
Despite the lower earnings, the company recorded growth in electricity sales, which rose by 887 GWh to 11,403 GWh, representing an 8 per cent increase. Total unit purchases expanded by 787 GWh, supporting improved sales performance.
At the same time, the cost of sales declined by 4 per cent, from Sh150.6 billion to Sh144.6 billion, resulting in savings of Sh5.94 billion. The company credited these savings to the stability of the shilling against key foreign currencies in which most power purchase agreements are priced.
“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,” managing director and CEO Joseph Siror said yesterday.
Operating expenses also fell by Sh3.86 billion, mainly due to reduced expected credit losses, supported by improved customer payment behavior and prevailing economic conditions.
The board has proposed a final dividend of Sh0.80 per ordinary share, following an interim dividend of Sh0.20 per share earlier in the financial 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,” said board chairperson Joy Brenda Masinde.
She noted that the company’s share price has surged by more than 900 per cent, rising from Sh1.38 in December 2023 to over Sh15. “This performance reflects renewed investor confidence in our transformation and in our capacity to deliver sustainable growth and long-term value,” she added.
On the customer front, the utility surpassed the 10 million mark, connecting 401,848 new customers and expanding its customer base to 10.1 million.
Distribution and transmission efficiency improved to 78.8 per cent, up from 76.8 per cent the previous year. This progress was linked to grid upgrades, system reinforcement and loss reduction measures.
Looking ahead, the company plans to continue modernising its infrastructure to improve reliability, reduce losses and support digital transformation. It aims to strengthen liquidity, boost operational efficiency and expand customer connections to deliver affordable and sustainable electricity.
“We will continue to reinforce financial sustainability through prudent cost management, optimised capital allocation and robust revenue growth. By executing these priorities, Kenya Power is well positioned to power the nation’s growth and create enduring value for its shareholders,” management said.