Kenya Power fails to declare dividend in half-year period

A section of Nakuru town covered in darkness after a major power outage

NAIROBI, KENYA: Kenya Power has recorded a decline in its profit after tax of sh2.9 billion in half-year financials compared to Sh4.2 billion recorded same year in 2016

The company in a notice attributed the drop to a slowdown in economy and an increase in the financing cost.

During the period under review, profit before tax decreased by 19 percent from Sh5.6 billion in the previous year to Sh4.5billion

Electricity sales grew by 2 percent from 3,805 GWh the previous year to 3,893 GWh in the period under review.

“We are seeking to leverage on the need to spur a 24 hour economy that will increase revenue from electricity sales,” said Kenneth Tarus Managing Director and CEO Kenya Power.

In the period under review the company introduced the time of use tariff targeting commercial and industrial customers. The tariff is designed to to encourage increased production during off-peak hours.

It implies that manufacturer who increases their night production will benefit from much lower tariff, leading to lower electricity bills while increasing their consumption of electricity.

The directors failed to declared dividend payment for the period.