NAIROBI, Kenya – Kenya Power has reported a Sh9.9 billion net profit for the six months to December 2024, marking a significant rebound from the Sh319 million posted in the same period last year.
The state-owned utility attributes its improved performance to lower operational costs, a stronger Kenya Shilling, and rising electricity sales.
Despite the surge in profitability, total electricity revenue fell by 5.4%, from Sh113.5 billion in December 2023 to Sh107.4 billion in December 2024.
The drop was linked to lower passthrough costs due to currency stability and the impact of a tariff reduction path embedded in the approved pricing structure.
Kenya Power reported a 5% rise in electricity sales, from 5,225 GWh to 5,506 GWh, citing improved network reliability, faster outage resolution, and new customer connections.
The firm also saw a Sh1.65 billion reduction in power purchase costs, benefiting from a strengthened Kenya Shilling, which lowered the cost of dollar-denominated Power Purchase Agreements (PPAs).
Additionally, Kenya Power boosted its renewable energy purchases to 6,603 GWh, up from 6,199 GWh in the previous half-year.
The company said its optimized generation mix helped cut costs further.
While costs declined in some areas, operating expenses jumped by Sh4 billion, reaching Sh23.7 billion—a rise attributed to higher staff costs, depreciation, and maintenance for the expanded network.
The company also began repaying government on-lent loans, which had been on a moratorium since March 2020.
Despite this, Kenya Power improved its working capital position, reducing its deficit from Sh27.4 billion in June 2024 to Sh18.9 billion in December 2024.
The board has declared an interim dividend of Sh0.20 per share, signaling confidence in continued financial stability.
Kenya Power plans to enhance efficiency, diversify revenue streams, and expand electricity sales—especially if the anticipated lifting of the moratorium on new power generation contracts materializes.
The company is also advancing its transformer metering project to improve system efficiency and reduce energy losses.
