This archive report was first published on 16 June 2020.
Kenya Power has issued a profit caution, warning that the company's earnings will be lower than last year's due to low growth in electricity sales.
The company's income took a significant hit, plummeting by 92% to KSh262 million for the year ended 30th June 2019, from KSh3.3 billion in 2018.
According to a statement from the board secretary, Imelda Bore, the COVID-19 pandemic has adversely affected the company's business operations, leading to slow growth in electricity sales and an increase in financing costs.
Manufacturers, who account for more power sales than households, have been particularly affected by the pandemic, with 42% of them operating below half their production capacity, as revealed by a KPMG survey.
Kenya Power had previously issued a profit warning in 2019, cautioning that rising non-fuel costs would trim its incomes.
