Kenya Power and Lighting Company PLC has announced a strong financial performance for the half-year ended December 31, 2025, posting a profit after tax of Ksh10.4 billion and declaring an interim dividend of Ksh0.30 per share.
In its report, the company attributed the improved performance to higher electricity sales, better distribution efficiency, reduced finance costs, and disciplined cost management.
Notably, this is even as power purchase and operating expenses rose due to increased demand and network investments.
In formally releasing the results, the Board of Directors confirmed the company’s overall financial outcome for the period.
“The Board of Directors of the Kenya Power and Lighting Company Plc is pleased to announce the unaudited financial results for the half-year period ended 31 December 2025,” the report read.
The company reported a notable increase in profitability before tax, reflecting stronger revenue performance and lower financing costs compared to the previous year.
“In the period under review, the Company recorded a profit before tax of KShs.14.83 billion for the six-month period to 31 December 2025, compared to KShs.14.06 billion reported in the corresponding prior period, representing an increase of KShs.769 million (5.5%). The improved performance is primarily attributed to higher electricity sales and reduced finance costs,” the report added.
The report showed that revenue growth was largely driven by increased electricity consumption and improved efficiency in power distribution.
“Revenue from electricity sales increased by 6.9%, from Ksh107.42 billion to Ksh114.87 billion, supported by higher electricity demand and improved distribution efficiency over the two comparative periods. Total electricity unit sales increased by 10.5% to 6,086 GWh, while distribution efficiency improved from 76.35% to 77.97%, reflecting enhanced network performance and loss reduction initiatives,” the report further read.
The company acknowledged that higher demand also pushed up the cost of purchasing power.
Additionally, operating expenses also rose during the half-year, with Kenya Power attributing the increase to provisions for credit losses, depreciation, and staffing costs.
“Power purchase costs increased by KShs.5.33 billion, largely driven by higher electricity demand, as total energy purchases increased by 8.3% to 7,807 GWh during the period.
“Operating expenses rose by Ksh1.43 billion, from Ksh23.74 billion to Ksh25.16 billion, primarily driven by 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,” the report indicated.
Despite the rise in operating costs, the company benefited from a reduction in finance expenses due to lower debt levels.
Kenya Power also highlighted improvements in its financial position, particularly in borrowing levels and working capital
“Finance costs reduced by Ksh492 million, reflecting lower interest expenses following scheduled loan repayments and reduced debt levels.
“The Company’s financial position continued to improve, with total borrowings reducing by 6% to KShs.84.23 billion as at 31st December 2025. The working capital position also improved, with negative working capital reducing from KShs.19.21 billion as at 30 June 2025 to KShs.12.54 billion as at 31st December 2025,” the report noted.
On the back of the improved performance, the Board announced an interim dividend for shareholders which will be paid subject to withholding tax where applicable.
“In line with the Company’s Dividend Policy and the improved financial performance, the Board of Directors is pleased to announce an interim dividend of KSh.0.30 per share. The interim dividend will be paid, subject to withholding tax where applicable, on or about 27th March 2026 to shareholders registered in the Company’s register at the close of business on 23rd February 2026,” the Board confirmed.
The company expressed confidence in sustaining growth and strengthening its balance sheet, while continuing investments in reliability and efficiency.
“Our half year results reflect continued momentum in strengthening performance and building resilience through a stronger balance sheet. 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,” the report read.
Kenya Power said it will continue prioritising supply adequacy and loss-reduction initiatives as demand rises, alongside grid modernisation efforts.
“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,” the report concluded.
