This archive report was first published on 29 October 2021.
Kenya Power has made a remarkable turnaround, posting a Sh. 1.5 billion net profit for the full year ended June 30, 2021, after a Sh. 939 million loss in the same period the previous year.
The power provider's financial results show a significant improvement, with profit before tax standing at Sh. 8.2 billion, a 216 per cent year-on-year growth compared to a loss before tax of Sh. 7.04 billion in the previous period.
Revenue jumped by 8.2 per cent from Sh. 133.3 billion to Sh. 144.1 billion, mainly due to an expanded customer base and heightened revenue protection activities driven by increased field presence.
Operating expenses dropped by 17 per cent from Sh. 47.8 billion to Sh. 39.9 billion, mainly due to a reduction in provisions for trade and receivables from Sh. 3.27 billion to Sh. 354 million.
Finance costs also registered a 27 per cent reduction from Sh. 12.5 billion to Sh. 9 billion, due to a decrease in interest on loans and overdrafts as a result of a Sh. 20.26 billion repayment of commercial loans.
Unit sales for the year under review recorded a five per cent growth from 8,171 GWh to 8,571 GWh, mainly driven by 716,206 new customer connections who contributed an additional 400 GWh.
Kenya Power chairperson Vivienne Yeda attributed the company's success to the investments made in driving a strong performance by the core business lines, saying, 'As a company, we are pleased with this set of results because it is a clear demonstration that the investments we have made in driving a strong performance by the core business lines are beginning to bear fruits.'
