Kenya Power's pre-tax profit reduces by Sh3 billion compared to last year

The Kenya Power has recorded a Sh5.1b profit before tax for the year ended June 30, 2022. [Mose Sammy, Standard]

The Kenya Power has recorded a Sh5.12 billion profit before tax for the year ended June 30, 2022.

The firm attributes the performance to growth in sales, improvement in efficiency and reduced operating costs.

“The company recorded profit before tax of Sh5.123 billion for the year ended June 30, 2022, which is mainly driven by 6.9 per cent growth in sales, and a 1.5 per cent improvement in system efficiency to 77.57 per cent. This performance was enhanced by a 4.6 per cent reduction in operating costs based on the continued deployment of strategic cost management initiatives,” the Kenya Power said in its financial report published on Page 5 of The Standard Newspaper on Friday, October 28.

Compared to the same period last year, the power company’s pre-tax profit has reduced.

For the year ended June 30, 2021, Kenya Power had posted a profit before tax of Sh8.198 billion. That was a 216 per cent increase in profits, compared to the Sh7.04 billion loss the firm had made in the year ended June 30, 2020.

Kenya Power attributes its decline in pre-tax profit from the Sh8.2 billion posted as of June 30, 2021 to the Sh5.12 billion posted as of June 30, 2022 to an increase in finance costs due to the weakening of the shilling against the US Dollar, the Sterling Pound and the Euro.

“Basic electricity revenue recorded a decline of 0.27 per cent from Sh125.9 billion the previous period to Sh125.6 billion. This, and a 40.2 per cent increase in finance costs due to the depreciation of the Kenyan shilling against major world currencies, resulted in a 37.5 per cent decline in profit before tax compared to the previous trading period,” the Kenya Power said.