Kenya Power and Lighting Company (KPLC) has announced a profit after tax of Ksh 24.47 billion for the financial year ended June 30, 2025, reflecting continued profitability despite a dip from the Ksh 30.80 billion recorded in 2024.
In a statement, the company attributed its performance to improved operational efficiency, prudent cost management, and lower finance costs, which helped cushion the impact of reduced electricity sales and lower exchange gains.
“Operating expenses decreased by Kshs. 3.86 billion, mainly due to lower expected credit losses (ECL) provisioning under the IFRS 9 model,” KPLC highlighted in their statement.
In recognition of the strong results, the Board of Directors proposed a final dividend of Ksh 0.80 per share, in addition to an interim dividend of Ksh 0.20 already paid during the year.
This brings the total dividend payout to Ksh1.00 per ordinary share, a rise from Ksh0.70 in the previous financial year.
Shareholders on record as of December 2, 2025, will qualify for the dividend, which is expected to be paid on or about January 30, 2026, subject to approval.
“If approved by shareholders, the dividend will be paid on or about 30 January 2026,” KPLC confirmed.
The Board noted that the increased dividend reflects the company’s solid financial position and its commitment to enhancing shareholder value as earnings remain resilient.
“With these results, Ksh25 billion for KPLC is inevitable,” the statement noted, signalling confidence in the firm’s future profitability and stability.
Profit before tax closed at Kshs. 35.38 billion, compared to Kshs. 43.67 billion in the previous year.
Profitability remained strong despite the impact of foreign exchange rate fluctuations over two consecutive periods, resulting in fewer borrowings and corresponding cost savings.
However, this also resulted in higher financing costs as unrealised forex gains reversed due to the strengthening of the local currency.
“This reflects greater macroeconomic stability during the period, contributing positively to reduced bad debt provisions and other operating expenses over time,” they noted.
Overall, the decrease contributed more towards operational efficiency.
Finance costs increased to Kshs. 4.72 billion, compared to a gain of Kshs. 863 million in FY2023-24.
This was primarily due to the reversal of unrealised foreign exchange gains, specifically Kshs. $ 704 million, due to the stable local currency.
Electricity revenue increased by Kshs. 1.84 billion from Kshs. 231.12 billion in FY2023-24 to Kshs. 219.29 billion.
“This decline was mainly due to reduced foreign exchange recoveries following the appreciated tariff effect of the Kenya shilling and implementation of a lower base tariff, leading to lower average unit yield,” KPLC acknowledged.
