Kenya Power reported a net profit before tax of Kshs.5.659 Billion in the half-year trading period ended 31 December 2021, up from Kshs.332 Million in the same period last year.Â
This expansion is mostly due to increased revenue, improved system efficiency, and decreased operating costs.
Electricity sales recorded a 366GWh increase to 4,562GWh, an 8.7% growth compared to a similar period last year.
This was driven by an increase in customer connectivity, as well as improved supply quality and reliability.
Kenya Power also recorded a 2.33% improvement in system efficiency which stood at 77.13% as at 31 st December 2021, led to a 12.9% increase in electricity revenue which grew to Kshs.69.447 Billion.
Operating costs decreased from Kshs.20.132 Billion to Kshs.19.036 Billion as a result of enhanced cost management and resource optimization initiatives that the Company is implementing as part of its turn-around strategy.
Non-fuel power purchase expenses grew from Kshs.38.123 billion in the previous period to Kshs 40.487 billion, owing primarily to additional unit purchases to meet rising demand.
Similarly, fuel costs climbed from Kshs.4.618 billion to Kshs.10.871 billion, owing to a 314 GWh increase in units purchased from thermal plants to 709 GWh due to low hydrology caused by delayed rains, as well as an increase in fuel prices.
Finance costs climbed to Kshs.6.777 billion from Kshs.6.601 billion in the preceding period, owing mostly to an increase in unrealised foreign exchange loss as a result of the Kenya shilling’s decline versus major currencies.
Overdue customer debt was reduced by Kshs.900 million for the first time in five years as a result of increased field presence.
