Kenya Power registers marginal growth in net profit from Sh7.2 billion to Sh7.3 billion

Kenya Power employees doing maintenance work on a transmission line. (Photo: Courtesy)

Kenya Power has registered a marginal growth in net profit from Sh7.2 billion to Sh7.3 billion in the financial year ended June 31, this year.

Despite Sh12.4 billion growth in revenue to Sh120.7 billion, profit before tax decreased by 9.7 per cent to Sh10.9 billion from Sh121 billion posted in the previous year as costs increased.

“The decrease was mainly attributed to increase in transmission and distribution costs by Sh4.77 billion and decreased finance income,” said Managing Director Kenneth Tarrus in a statement on Monday.

In the period under review, finance income fell 21 times from Sh965 million to Sh46 million. This was as a result of reduced bank balances.

During the year, power purchase costs rose by Sh8.7 billion or 12.3 per cent to Sh78.9 billion compared to Sh70.3 billion incurred last year.

While non-fuel costs and foreign exchange costs remained relatively flat, fuel costs rose by 74 per cent to Sh22.1 billion.

This was due to increased usage of thermal sources during the year. Electricity units generated from thermal plants increased by 66.9 per cent, from 1,297-gigawatt hour (GWh) the previous year to 2,165GWh.

In addition, transmission and distribution costs increased by 16.6 per cent to Sh33.4 billion in the year under review.

“The rise was attributed to higher operational and maintenance costs on the expanded electricity network facilities, depreciation due to increased capital investment and the rising cost of doing business,” said the firm.

However, finance costs decreased by Sh160 million during the year to Sh5.65 billion.