This archive report was first published on 19 November 2019.
Kenya Power, the country's leading electricity provider, is taking drastic measures to cut costs amidst a decline in profitability. The company has suspended afternoon tea services for its staff, effective from December 1, 2019.
According to a notice issued by the company's acting general manager, human resource and administration, David Monandi, the decision was made to help manage various costs. Monandi called for understanding and cooperation from staff as the company navigates to turn around its business.
"As management continues to implement a raft of measures to manage various costs, addressees are hereby notified that provision of afternoon tea services shall be suspended with effect from Sunday, December 1," the notice read.
Kenya Power has been struggling with increased transmission cost and dwindling profitability. In 2017, the firm recorded a net profit of KSh 5.28 billion, but the figure dropped to KSh 1.92 billion for the year ended June 2018.
Despite increased connectivity, Kenya Power is facing a 25% decline in net profit for the year ended June 2019, as reported earlier. This means the parastatal may record at least KSh 1.44 billion in net profit from KSh 1.92 billion realised during the same period under review in 2018.
