Kenya Power has reported a significant uptick in profit for the half-year to December 31, 2025, as the utility continues to juggle rising operational costs and public expectations for affordable and reliable electricity.
The power distributor’s financial results, released on February 2, revealed that profit before tax climbed to Ksh14.83 billion, up from Ksh14.06 billion in the same period last year — an increase of Ksh769 million.
Electricity sales revenue grew by 6.9 per cent to Ksh114.87 billion, driven by heightened demand and improvements in nationwide distribution efficiency, the company said.
Kenya Power’s data showed that unit electricity sales rose 10.5 per cent to 6,086 gigawatt-hours (GWh), while distribution efficiency improved from 76.35 per cent to 77.97 per cent following connectivity upgrades during the review period.
However, the surge in consumption resulted in increased energy purchases. Total electricity bought by Kenya Power rose 8.3 per cent to 7,807 GWh, pushing up power purchase costs by Ksh5.33 billion, which emerged as a key driver of overall expenses.
Operating costs also increased, climbing Ksh1.43 billion to Ksh25.16 billion, largely due to higher credit loss provisions, depreciation on new assets and elevated staff costs across the business.
On a positive note, the company recorded a decline in finance costs, which eased by Ksh492 million as borrowings fell by 6 per cent and foreign exchange rates remained relatively stable during the period.
These financial dynamics contributed to an overall 5.5 per cent growth in profit before tax, according to the utility’s statements.
Kenya Power attributed the improved performance to stronger sales volumes and reduced finance costs, even as margin pressures persist in the context of high power tariffs.
The company’s balance sheet also showed signs of strengthening. Total borrowings declined from Ksh87.64 billion to Ksh84.23 billion by the end of December 2025, enhancing liquidity and debt management. Working capital improved as net liabilities narrowed from Ksh19.21 billion in June to Ksh12.54 billion at half-year, reflecting tighter cash-flow discipline.
In a development welcomed by investors, Kenya Power’s board declared an interim dividend of Ksh0.30 per share, payable on or around March 27, 2026, to shareholders on the register as of February 23.
The board said the dividend is consistent with company policy and underscores ongoing progress in financial sustainability and operational resilience.
Looking ahead, Kenya Power outlined plans to secure electricity supply, reduce distribution losses, modernise the national grid, and enhance customer experience — key priorities as it seeks to support Kenya’s broader economic growth.
