This archive report was first published on 10 July 2020.
Kenya Power, the country's leading electricity distributor, has suffered a significant loss in sales due to the COVID-19 pandemic. According to the company, the loss amounts to Sh5.6 billion, equivalent to about 5.5 per cent of its full-year sales.
The loss is attributed to the widespread interruption of commercial and industrial operations, which has led to a decline in electricity consumption. Energy Cabinet Secretary Charles Keter told the Senate Committee on Energy that electricity consumption declined by 14.8 per cent between March and June 2020, resulting in a decrease in energy consumption of 341 GWh.
Mr. Keter further explained that out of Kenya Power's 7.1 million customer base, six million are domestic customers consuming less than 100 units or Sh200 per month worth of electricity. However, it is the one million heavy commercial and SME customers who contribute to about 90 per cent of the company's revenue.
The COVID-19 restrictions, which included a ban on public gatherings, closure of bars and schools, and a 9pm-4am curfew, have had a significant impact on Kenya Power's sales. The company has already issued its third profit warning in a row, indicating that its net earnings will decline by at least 25 per cent of last year's profit of Sh262 million.
