Kenya Power Profit Falls 18.7% To KSh 24.47 Billion

By Esther Murigi

Kenya  Power and Lighting Company (KPLC) has reported a net profit of KSh 24.47 billion for the financial year ending June 2025, representing an 18.7 percent decline from the KSh 30.1 billion it posted in the previous year.

‎The decline comes despite a modest growth in total revenue, which increased from KSh 175.2 billion last year to KSh 181.6 billion in the year under review. The company said the drop in profit was mainly due to higher operating costs, increased power purchase expenses, and foreign exchange losses.‎

‎Kenya Power, which supplies electricity to over 9.2 million customers across the country, said that its total expenses rose sharply during the year. The cost of purchasing electricity from independent power producers increased to KSh 125.4 billion, up from KSh 117.8 billion in the previous period, driven by higher global fuel prices and a weaker shilling against major currencies.‎

‎The company also experienced higher maintenance, staff, and financing costs. Its operating expenses grew by 12 percent, reaching KSh 38.7 billion, compared to KSh 34.5 billion the year before. Finance costs rose by 9.4 percent to KSh 13.2 billion, reflecting increased borrowing and currency changes.

‎‎Kenya Power said that while demand for electricity among domestic consumers grew by around 3.1 percent, sales to large industrial and commercial customers declined by nearly 1.8 percent. This drop in industrial demand reduced overall sales growth and affected profitability.‎

‎The total electricity units sold rose slightly from 9,333 GWh in the previous year to 9,442 GWh. However, system losses of electricity generated but not billed due to theft and leakages remained high at 22.6 percent, above the global average of around 15 percent. The company said reducing these losses remains a key focus area going forward.

‎‎Kenya Power also faced pressure from a weaker Kenyan shilling, which traded at an average of KSh 152 to the US dollar during the financial year, compared to KSh 132 the previous year. The depreciation led to an increase in foreign exchange losses, as the company pays most of its power purchase contracts and loans in foreign currency.

‎‎The company said that the increase in operational and financial costs outweighed the gains made from tariff adjustments and revenue growth. It also added that the financial performance reflects the impact of higher costs of power purchases, operational expenses, and the depreciation of the shilling. They are implementing cost management measures and operational reforms to restore profitability in the coming year.

‎‎Despite the decline in profit, Kenya Power’s total assets grew from KSh 456 billion to KSh 472 billion, supported by continued investment in infrastructure and expansion projects. The company invested KSh 21.5 billion in upgrading its transmission and distribution networks during the year.

‎‎The management said these investments were necessary to enhance supply reliability, reduce blackouts, and support new connections under the government’s Last Mile Connectivity Project, which aims to achieve universal electricity access. The project has connected more than 1.3 million new customers over the past two years.

‎‎Kenya Power said it is also focusing on increasing the share of renewable energy in its supply mix. Currently, about 88 percent of Kenya’s electricity comes from renewable sources such as hydro, geothermal, wind, and solar power. The company aims to reduce dependence on expensive thermal generation, which currently accounts for about 12 percent of total electricity generated.

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The Author is Esther Murigi certified Broadcast Journalist