Kenya Power and Lighting Company (KPLC) has recorded a significant increase in net profit to KSh 9.9 billion in six months ending December 2024, up from KSh 319 million in a similar period in 2023. Kenya Power MD Joseph Siror. The company reported an improved profit. Photo: KPLC. Source: Facebook Why KPLC recorded improved profit KPLC’s latest financial results showed the electricity distributor registered a 5% growth in sales from 5,225 Gwh to 5,507 Gwh. The utility company attributed the rise in profit to a stable Kenya shilling against the United States (US) dollar and other international currencies.
“This growth in profitability is attributed to lower cost of sales and reduced finance costs owing to the stability of the Kenya shilling against major foreign currencies during the period under review, and an increase in electricity sales by 5% from 5,225 GWh to 5,506 GWh,” KPLC said in a statement. Kenya Power attributed the rise in electricity unit sales to higher consumption due to improved network reliability, connection of new customers and improved outage resolution timelines. This was supported by the availability of critical materials including meters and transformers. KPLC board of directors proposed KSh 0.20/share in interim dividend. Why KPLC’s revenue declined Despite the rise in net profit, KPLC’s revenue fell from KSh 113.5 billion in December 2023 to KSh 107.4 billion in December 2024, a 5.4% decrease.
The decline was ascribed to lower passthrough costs as the Kenyan shilling’s stability over time and its lower average yield led to tariff reduction. The shilling’s strength also saw the cost of power purchases drop by KSh 1.65 billion to Sh71.4 billion during the period under review. Operating expenses increased by KSh 4 billion from KSh 19.7 billion to KSh 23.7 billion. This was due to higher operating costs, including personnel costs, depreciation, and other maintenance costs. The company started repaying the government-lent debts during that time, which had been on repayment moratorium since March 2020.
by Japhet Ruto
