Kenya Power has in the first half of its financial year to December 2022, reported a net loss of Sh1.14 billion.
The firm attributed the performance to revenue losses occasioned by the 15 per cent reduction in the cost of electricity that was in force between January and December last year.
The loss over the half year is in comparison to a loss after tax of Sh3.82 billion it made over a similar half to December 2021.
The firm also said the weakening of the shilling had led to foreign exchange losses that also contributed to its poor performance over the period.
“This drop is attributable to increased foreign exchange losses, and the implementation of the 15 per cent reduction of the end user electricity tariff as recommended by the government in January 2022,” said Kenya Power when it published its results for the half on Monday.
Following the reduction in the cost of electricity, the power firm said the basic electricity revenue for the six months decreased by Sh6.69 billion.
The company’s revenues grew to Sh86.67 billion as of December 2022, from Sh83.57 billion as customers increased their consumption of electricity during the half.
“On a positive note, the company recorded a 4.4 per cent growth in electricity sales to 4,764GWh for the period compared to a similar period last year. The growth in sales was driven mainly by growing energy demand occasioned by increased economic activities and an expanded customer base,” said Kenya Power.
The tariff that resulted in the 15 per cent reduction in power costs was to be in place for a year to December 31, 2022. Kenya Power however continues to bill its clients using the same tariff as it waits for the Energy and Petroleum Regulatory Authority (Epra) to complete a tariff review process.
The process is expected to yield a new tariff by April 1 and is expected to see costs go up.
Power prices have however gone up in recent months on account of higher usage of expensive thermal plants due to reduced power production from hydro plants because of the prolonged dry spell.