Kenya Power Reverses Sh4.3 Billion Loss to Achieve Sh43.67 Billion Profit Before Tax

In a hurry? Here’s a quick summary…

• Kenya Power’s revenue increased by 2.1%, driven by new customer connections, a revised tariff, and a stronger Kenyan Shilling.
• The company announced a dividend of Sh0.70 per share, with payment expected in January 2025.

Kenya Power has attributed its improved financial performance to several key factors, primarily price increases in revenue, especially within the energy consumption segment. 

This revenue increase was supported by a 2.1% growth in revenue sources, which rose from Sh150.98 billion to Sh231.12 billion over the past year. Key contributors to this growth included new customer connections and increased economic activities, notably in the manufacturing sector.

The company also benefited from the implementation of a revised base tariff structure in April 2023, which boosted sales. 

Additionally, finance costs declined by Sh24.84 billion, driven largely by an unrealized foreign exchange gain of Sh7.8 billion as the Kenyan Shilling appreciated against the US Dollar and Euro. 

This strengthening of the Shilling helped keep operating costs lower than revenue growth, contributing to a higher gross margin.

Operating expenses increased to Sh46.28 billion from Sh37.28 billion, mainly due to higher wheeling charges and the recruitment of technical staff to meet growing business demands. 

Staff costs were also impacted by the Finance Act 2023 and inflation-related adjustments. Despite these expenses, Kenya Power maintained stable margins through careful cost management and strategic budgeting.

The company’s working capital, though still negative, showed steady improvement, reducing from negative Sh42.4 billion in FY 2019-2020 to negative Sh27.44 billion this year, reflecting efforts to optimize financial resources.

Additionally, Kenya Power has announced a dividend payout of Sh0.70 per ordinary share for the fiscal year ending June 30, 2024, pending shareholder approval, with payment expected in January 2025.