This archive report was first published on 10 July 2020.
Published on July 10, 2020, Kenya Power revealed a significant loss in revenue due to the COVID-19 pandemic. The company reported a decline in electricity consumption of 14.8 percent between March and June 2020, resulting in a revenue reduction of approximately KSh 5.6 billion.
According to CS Keter, quoted by Business Daily, the decrease in energy consumption corresponded to a reduction of about 341 GWh. This decline in electricity sales revenue was a stark contrast to the company's previous profit warning, issued just a month prior, citing low growth in electricity sales.
Despite a slight increase in electricity consumption by households due to stay-at-home orders, commercial consumers remained the primary source of revenue for Kenya Power. The company serves 6 million domestic customers, who consume less than 100 units of electricity per month, accounting for only 10 percent of the company's revenues.
Heavy commercial and SME customers, comprising about 1 million customers, generate approximately 90 percent of Kenya Power's revenue. In an effort to increase revenue from domestic customers, the company had previously proposed increasing electricity charges for consumers using less than 100kWh per month to KSh 12.5 per unit and for those using less than 200 units a month to KSh 19.53 per unit.
