Strong shilling, sales push Kenya Power back into profit
Kenya power Managing Director and CEO Eng Joseph Siror during a past press briefing.
Kenya Power has returned to profitability, posting a net profit of Sh30.08 billion on the back of increased sales and a strong shilling that reduced its costs.
The company marked a turnaround from a net loss of Sh3.19 billion net loss for the year ended June 2023.
This comes as revenue from electricity sales grew 21 percent to Sh231.12 billion from Sh190.98 billion on increased consumption.
Finance costs fell sharply to Sh682 million from Sh24.1 billion a year earlier, underscoring the massive impact of the shilling's rally on Kenya Power's books.
"This performance was primarily driven by a 21 percent increase in revenue notably from the commercial and industrial sector and decreased financial costs due to the strengthening of the Kenyan shilling against major global currencies," Kenya Power said in a statement.
The shilling rallied to exchange at 128.4 units to the dollar at the end of the last financial year in June, compared with 140.45 units to the greenback a year earlier.
Kenya Power will also pay dividends to shareholders, ending a seven-year drought.
The board has proposed a first and final dividend of Sh0.70 per ordinary share to shareholders in the register at the close of business on December 2, 2024. If approved, the dividend will be paid on or about January 31, 2025.
Kenya Power last paid a dividend in 2017, but froze payments in subsequent years amid shaky performance and increased demand for cash to run operations.
The utility has also benefitted from the falling electricity prices, which spurred demand from industries, homes and small and medium-sized enterprises.
