Renewable Energy Secretary Isaac Kiva, Kenya Power chairman Joy Brenda Masinde, managing director Joseph Siror and general manager finance Stephen Vikiru, during the announcement of Kenya Power's financial year results for the year ended June 2025/ HANDOUTKenya Power profit after tax for the financial year 2024-25 declined by 18.7 per cent to Sh24.5 billion, impacted by lower electricity tariffs, reduced foreign exchange recoveries and higher finance costs linked to currency stabilisation.
This is down from the Sh30.1 billion recorded in the previous financial year.
The company’s profitability was, however, buoyed by an increase in electricity sales, which rose by 887 GWh, to 11,403 GWh, an eight per cent increase in sales, while total unit purchases grew by 787 GWh.
The overall cost of sales however, declined by four per cent from Sh50.6 billion to Sh144.6 billion, resulting in a Sh5.94 billion saving.
The savings were realised due to the stability of the shilling against major foreign currencies in which most Power Purchase Agreements (PPAs) are denominated.
“The base tariff has been coming down over the last two years, reflecting the government’s commitment to lowering the cost of electricity. This is a positive move for consumers as it will make it more affordable for our customers to consume more electricity. In turn, this will positively impact the company as we can leverage the economies of scale to remain profitable. You can already see that impact in our results this year as we sold more units at a lower price and remained profitable,” managing director and CEO Joseph Siror said yesterday.
Operating expenses decreased by Sh3.86 billion due to lower expected credit losses reflecting prevailing macroeconomic conditions and customer payment behavior.
The utility firm's board of directors has recommended a final dividend of Sh 0.80 per ordinary share, having already issued an interim dividend of Sh0.20 per share paid out in the first half of the year.
“For the second year in a row, the company is paying out a dividend to investors and we remain confident that, as our financial performance improves, payment of dividends will be sustained. Dividend payment has significantly strengthened investor confidence in the company," said Kenya Power board chairman, Joy Brenda Masinde.
"The Kenya Power share price has appreciated by more than 900 per cent from a low of Sh1.38 in December 2023 to a remarkable price of over Sh15. This performance reflects renewed investor confidence in our transformation and in our capacity to deliver sustainable growth and long-term value.”
From a customer perspective, the company crossed the 10 million customer mark, connecting 401,848 new customers and expanding its total customer base to over 10.1 million customers.
The company was also able to improve its distribution and transmission efficiency to 78.8 per cent from 76.8 per cent the previous year, driven by ongoing grid upgrades, system reinforcement and loss reduction initiatives.
Looking ahead, Kenya Power remains steadfast in its commitment to enhancing operational efficiency, strengthening liquidity, and delivering reliable, affordable and sustainable electricity to all Kenyans, management affirmed.
The company’s strategic priorities focus on modernising the grid to improve reliability, reduce losses, accelerating customer connections and driving digital transformation to enhance customer experience, improve revenue assurance and support a smarter energy network.
"We will continue to reinforce financial sustainability through prudent cost management, optimised capital allocation and robust revenue growth. By executing these priorities, Kenya Power is well positioned to power the nation’s growth and create enduring value for its shareholders," management said.
