Editor's Review

The Kenya Power and Lighting Company (KPLC) has recorded a net profit of Ksh30 billion for the financial year ended June 30, 2024.


The Kenya Power and Lighting Company (KPLC) has recorded a net profit of Ksh30 billion for the financial year ended June 30, 2024.

Speaking on Tuesday, October 29, during the announcement of the financial results in Nairobi, Energy Principal Secretary Alex Wachira stated that KPLC will for the first time in over seven years issue dividends to its shareholders.

"This year, Kenya Power has returned to profitability after facing numerous challenges in the energy sector and the economy. The company declared a Ksh30 billion profit after tax, a significant achievement given the capital-intensive nature of power and distribution costs.

"Kenya Power will issue a dividend to shareholders for the first time in over seven years, delivering a return on investment to the Kenyan taxpayer. The government is committed to eliminating these challenges in operations and service delivery," Wachira remarked.

KPLC noted that in the financial year 2023/24, electricity sales increased by 21 percent to Ksh231.12 billion from Ksh190.98 billion in the previous financial year.

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Dr. Joseph Siror makes his remarks during the release of the financial results.

The company attributed the increase to improved sales, particularly from 447,251 new customers who were connected to the power grid.

KPLC further disclosed that financial costs decreased by Ksh24.84 billion, which it attributed to an unrealised foreign exchange gain of Ksh7.88 billion.

"This gain was due to the appreciation of the Kenyan shilling against the US dollar and Euro both of which represent approximately 90 percent of the company's loan portfolio," KPLC explained.

The company further intimated that the power purchase cost increased from Ksh143.58 billion in the previous year to Ksh150.61 billion while operating expenses rose from Ksh37.28 billion to Ksh46.28 billion.

"This increase is attributed to a 92 percent rise in wheeling charges for the expanding transmission network and the recruitment of additional technical staff to support business operations. Through careful cist management and zero-based budgeting, we aim to maintain stable margins despite inflationary pressures," Kenya Power CEO Dr. Joseph Siror stated.