NAIROBI, Kenya- Kenya Power has posted a KSh24.99 billion profit after tax for the financial year ended June 30, 2026, as higher electricity sales, new customer connections and lower finance costs strengthened its bottom line.
The utility’s newly published abridged report shows revenue rose to Sh238.24 billion from Sh219.29 billion a year earlier, an increase of Sh18.96 billion.
However, the Auditor-General has also flagged weaknesses in internal controls, risk management and governance that the company will need to address.
Profit after tax increased by 2.13% from Sh24.47 billion in the previous financial year, while profit before tax rose to Sh36.01 billion from Sh35.38 billion.
Kenya Power Chairperson Joy Brenda Masinde said the company had remained resilient despite an evolving legal, regulatory and operating environment, citing investments in infrastructure, stronger financial performance and measures to meet rising electricity demand.
Higher sales, lower finance costs lift earnings
Electricity sales rose by 12.05% to 12,777 gigawatt-hours from 11,403 GWh in the previous year.
Kenya Power attributed the increase to higher consumption across customer categories, improved revenue-protection measures and the addition of 411,710 new customers.
The cost of sales increased to Sh152.65 billion from Sh144.66 billion, reflecting higher energy volumes and demand. Still, revenue growth outpaced the rise in costs, pushing gross margin to Sh85.59 billion from Sh74.62 billion.
Operating costs, however, rose to Sh53.75 billion from Sh42.42 billion, reducing operating profit to Sh38.57 billion from Sh39.47 billion.
A sharp fall in finance costs helped cushion the pressure. Financing expenses dropped by Sh1.64 billion to Sh3.08 billion, following reduced outstanding loan balances and lower interest expenses.
Kenya Power Managing Director and Chief Executive Dr Eng Joseph Siror said the improved debt profile had strengthened the company’s balance sheet and enabled continued investment in the electricity network, customer access and digital systems.
Dividend recommendation and stronger balance sheet
The board has recommended a final dividend of Sh1.20 per ordinary share, subject to shareholder approval at the company’s Annual General Meeting on November 27.
Together with the Sh0.30 interim dividend paid in March, the proposed payout would bring the total dividend for the 2025/26 financial year to Sh1.50 per share.
The final dividend is expected to be paid on or around December 31, 2026, to shareholders on the register at the close of business on November 27, subject to applicable withholding tax.
Kenya Power’s total assets rose by Sh32.45 billion to Sh421.49 billion, supported by investment in network expansion, reinforcement and modernisation. Shareholders’ equity grew to Sh131.80 billion from Sh109.34 billion.
The utility also reported a significant improvement in working capital, moving from a Sh19.21 billion deficit at the end of June 2025 to a Sh1.90 billion surplus a year later.
System losses fall as demand rises
The report shows that system losses declined to 18.58% from 21.21%, reflecting investments in network reinforcement, loss-reduction programmes and efforts to curb unaccounted-for electricity consumption.
Distribution and transmission efficiency improved to 81.42% from 78.79%, meaning a larger share of electricity purchased by the company was converted into billable sales.
Peak demand rose by 8.6%, or 2,316 megawatts, to 2,514MW during the year, putting further pressure on generation and transmission capacity.
Kenya Power said 71.5MW of generation capacity was added during the period, with another 60.5MW under commissioning at KenGen’s Olkaria I geothermal station.
Electricity imports from Ethiopia are also expected to provide between 200MW and 400MW during the current financial year.
The company said it would prioritise grid reliability, system-loss reduction, revenue collection, digitalisation, smart-grid investment and new revenue streams as it prepares for continued growth in electricity demand.
Auditor flags governance and control gaps
While the Auditor-General found that Kenya Power’s financial statements fairly presented its financial position, the audit report drew attention to land without ownership documents.
The report also flagged issues concerning the lawfulness and effectiveness of public-resource use, including the procurement of hired off-grid thermal generators, compliance with the 30% procurement reservation for disadvantaged groups, payment of acting allowances, compliance with the one-third basic salary rule and gender inequality.
On internal controls, risk management and governance, the Auditor-General concluded that the company’s systems were not effective.
The audit cited long-outstanding receivables from government and other entities, delays in implementing fully paid customer connection works, differences between meter-inventory records and physical stock, failure to dispose of faulty meters, weaknesses in controls over faulty distribution transformers, active meters recording no consumption, and delayed supplier-registration processes.
The governance findings are separate from the audit opinion on the financial statements, but they place Kenya Power under pressure to strengthen accountability as it expands its network and seeks to improve service delivery.
Shareholders will consider the audited accounts, dividend proposal, director elections, revised company articles and policy changes during the company’s 105th AGM, which will be held virtually on November 27.
