This archive report was first published on 14 July 2020.
Kenya Power is facing a new challenge as five of its independent directors have resigned, citing the company's struggles due to the Covid-19 pandemic and rising costs.
According to a statement issued by the company on Tuesday, the directors who have resigned are Adhil Khawaja, Kairo Thuo, Wilson Kimutai Mungung'ei, Brenda Kokoi, and Zipporah Kering.
Kenya Power had issued a profit warning in June, citing reduced electricity consumption due to coronavirus control measures and rising costs of buying wholesale power from firms like KenGen.
"The Covid-19 pandemic has adversely affected our business operation leading to a slow growth in electricity sales and an increase in financing costs resulting in reduced earnings," the company said in a statement.
Despite the challenges, Kenya Power's revenue rose by 1.34 percent to Sh133.1 billion in the six months to December, attributed to new purchases from the completed Lake Turkana Wind Power project and the 50-megawatt Garissa solar farm.
The company last paid a dividend in 2017, and its net profit for the six months to December declined by 71.8 percent to Sh693 million.
