Kenya Power has announced a remarkable Ksh.9.97 billion profit after tax for the financial year ending December 31, 2024.
The company attributed this impressive performance to increased electricity sales, reduced cost of sales, and lower finance costs, driven by the stabilization of the Kenyan Shilling against major foreign currencies.
In a statement released on Friday, Kenya Power’s Managing Director, Dr. Joseph Siror, highlighted several factors behind the company’s financial success.
Electricity unit sales grew significantly due to improved network reliability, new customer connections, and faster outage resolution times.
The availability of critical materials, such as meters and transformers, also played a key role in boosting sales.
Reduced Power Purchase Costs
Power purchase costs decreased by Ksh.11.65 billion, while finance costs dropped by Ksh.13 billion, from Ksh.15 billion in December 2023 to Ksh.1.97 billion in December 2024.
This reduction was largely attributed to the strengthening of the Kenyan Shilling against major foreign currencies, as most Power Purchase Agreements (PPAs) are denominated in foreign currency.
Kenya Power Improved Working Capital
Kenya Power’s working capital improved by 30%, moving from a negative Ksh.27.44 billion in June 2024 to a negative Ksh.18.99 billion in December 2024.
Despite the overall positive performance, the company reported a Ksh.4 billion increase in operating expenses, primarily due to higher depreciation and maintenance costs associated with its expanded network.
Dr. Siror emphasized Kenya Power’s commitment to sustaining its financial performance through targeted initiatives aimed at enhancing efficiency and diversifying revenue streams.
The company plans to advance its transformer metering project to improve energy balance and system efficiency.
“At the core of our strategy is a commitment to powering people for better lives while maintaining a sharp focus on operational excellence. Looking ahead, we are committed to sustaining our improved financial performance through targeted initiatives that enhance efficiency and diversify revenue streams to drive long-term growth,” said Dr. Siror.
Kenya Power’s strong financial performance in 2024 reflects its efforts to improve service delivery, reduce costs, and enhance operational efficiency.
As the company continues to implement strategic initiatives, it aims to build on this success and deliver long-term value to its stakeholders while ensuring reliable and affordable electricity for all Kenyans.
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