This archive report was first published on 19 September 2019.
Kenya Power's financial woes continue to deepen, with the company projecting a 25% loss in net earnings for the year ending June 2019.
According to a statement released on September 19, 2019, the company's acting managing director Jared Othieno attributed the sharp drop to an increase in non-fuel costs, which is in line with the company's long-term strategy of growing cheaper and cleaner renewable energy.
Kenya Power recorded a gross profit of KSh 7.6 billion in 2017, but this dropped to KSh 3.1 billion in 2018, a decline of over 59.2%.
The company's growth in renewable energy is aimed at making power affordable to all while reducing dependency on thermal generation, according to the statement.
However, the company's shift towards renewable energy has been marred by scandals, including the alleged fraudulent procurement of transformers and a token scandal involving rogue staff and customers.
Kenya Power has been rocked by these scandals in recent months, with the managing director Ken Tarus being arrested, arraigned, and later suspended.
Tarus was charged alongside his predecessor Ben Chumo and others.
