On Monday, Kenya’s national power utility, Kenya Power, recorded $118 million in profit pre-tax for the year ended June 30 2016.
According to the company CEO, Dr Ben Chumo, the level of profitability has been achieved as a result of the sustained favourable business environment, the utility noted in a statement.
Kenya Power: increased demand
The power company explained that electricity sales grew by 3.6% from 7,130 million units in the previous year to 7,385 million units in the period under review.
Chumo said: “This, combined with an improved average yield, led to 11.9% increase in sales revenue, from Sh77.8 billion [$768 million] the previous year to Sh88 billion [$867 million].”
The Company added that the power purchase cost excluding fuel cost and foreign exchange increased by Sh6.9 billion [$68.9 million] to Sh51.4 billion [$502 million] due to increase in energy charges resulting from growth in unit purchases.
However, the fuel cost decreased by Sh13 billion [$128 million] to Sh12.7 billion [$118 million] due to increased reliance on geothermal and hydro sources during the year.
The company has been undertaking a countrywide network upgrade and expansion during the year, resulting in a 18.3% increment in transmission and distribution expenditure to Sh28.7 billion [$285 million].
“The company has started to realise gains from heavy investments made in the years to grow and sustain business as evidenced by an expanded footprint across the country, improved customer experience and growth in asset base, besides enhanced reliability and quality of power supply,” Chumo said.
As a result of the performance, the directors have recommended that, in addition to the interim dividend of Sh0.20 paid at half year, a full and final dividend of Sh0.30 per ordinary share be paid for the year.