Kenya Power Profit Before Tax Rises by Ksh 639 Million to Ksh 36.01 Billion

Kenya Power has reported an increase in earnings, with profit before tax rising by Ksh 639 million to Ksh 36.01 billion.

According to the company’s financial statements, profit after tax also increased by Ksh 522 million, representing a 2.13 per cent rise, to Ksh 24.99 billion.

The improved performance translated into higher earnings per share, with both basic and diluted earnings per share increasing from Ksh 12.54 to Ksh 12.81.

Kenya Power’s Board said the business performance reflects the Company’s sustained implementation of strategic initiatives focused on operational excellence, customer centricity, financial sustainability and human capital development. 

“These initiatives supported growth in electricity demand and led to improvements in revenue, system efficiency, profitability and the Company’s overall financial position,” the Board said.

Financial Position

The Company’s financial position strengthened during the year, with total assets increasing by Ksh 32.45 billion to Ksh 421.49 billion. 

This growth was supported by continued investment in expansion, reinforcement and modernisation of the electricity network, with capital expenditure totalling Ksh 28 billion during the year.

Net Working Capital

Kenya Power achieved a significant turnaround in its working capital position, moving from negative Ksh 19.21 billion as at 30 June 2025 to positive Ksh 1.90 billion, an improvement of Ksh 21.11 billion. 

Consequently, the current ratio improved from 0.84 to 1.02, marking an important strengthening of the Company’s short-term liquidity position.

The debt profile continued to strengthen, with total borrowings declining to Ksh 79.82 billion and borrowings due within one year reducing by 39.21% to Ksh 10.64 billion, easing the annual debt service requirement.

Total equity increased by Ksh 22.47 billion, or 20.55%, to Ksh 131.80 billion, primarily driven by growth in retained earnings.

As a result, the gearing ratio improved significantly from 73% to 55%, while the debt-to-equity ratio improved from 0.80 to 0.60.

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Dividend

Kenya Power resumed dividend payments in the 2023/24 financial year and has progressively increased its dividend per share, citing improved financial performance and a stronger balance sheet.

The company paid an interim dividend of KSh0.30 per ordinary share during the year in recognition of the continued improvement in its performance.

The Board has now recommended a final dividend of KSh1.20 per ordinary share for the financial year ended June 30, 2026, subject to applicable withholding tax.

Shareholders who are on the company’s register at the close of business on November 27, 2026, will qualify for the dividend.

If shareholders approve the proposal, Kenya Power will pay the dividend before December 31, 2026.

Revenue

Electricity revenue increased by Ksh 18.96 billion to Ksh 238.24 billion, primarily driven by higher electricity sales. 

Total electricity sales increased by 12% from 11,403 GWh in the previous year to 12,777 GWh. 

“This growth was supported by increased sales across all customer categories and consumption from 411,710 new customers added during the year. Enhanced revenue protection initiatives also contributed to the growth,” the Company said.

Distribution and transmission efficiency improved from 78.79% to 81.42%, further supporting the Company’s ability to convert growing demand into electricity sales.

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Power Purchase Costs

Cost of sales increased by 5.52% to Ksh 152.65 billion.

The increase was lower than the 8.64% revenue growth, reflecting the company’s continued focus on managing electricity supply costs amid rising demand.

The lower growth in cost of sales relative to revenue resulted in a Ksh 10.97 billion increase in gross profit to Ksh 85.59 billion.

Consequently, gross profit margin strengthened to 36% from 34% in the prior year, demonstrating improved gross earnings generated from each shilling of revenue.

Operating Expenses 

Net operating expenses increased by Ksh 11.33 billion, from Ksh 42.42 billion to Ksh 53.75 billion. 

According to the Board, the increase was partly driven by higher expected credit losses, alongside increases in staff costs, depreciation and other operating expenses.

The higher cost base reflects the resources required to operate, maintain and expand the electricity network, while continuing to support customer service and business operations.

Finance Costs

Finance costs decreased by Ksh 1.64 billion to Ksh 3.08 billion, primarily due to lower interest expenses following the reduction in the company’s outstanding loan balances.

Kenya Power said the reduction reflects the Company’s continued focus on strengthening its debt profile and managing overall financing costs.

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Kenya Power’s Board said the business performance reflects the Company’s sustained implementation of strategic initiatives. PHOTO/ Daily Nation Screengrab.