Kenya Power has seen a 53% profit increase for the six month period ending in December 2014. This is partly driven by new customers and the implementation of higher electricity tariffs.
Kenya Power’s pre-tax rose from Sh4.2 billion ($43 million) to Sh6.4 billion ($66 million) over the six month period. The company’s revenue has increased 40% from Sh26.9 billion ($296 million) to Sh37.6 billion ($416 million).
The company will continue to retain and enhance its customer base to maintain these figures.
Kenya Power CEO Ben Chumo said, “We [Kenya Power] are optimistic that... the company's good performance will be sustained”.
According to Chumo, the company is driving a capacity enhancement programme to strengthen the grid in anticipation of the increased generation capacity.
“We are undertaking major power projects including fast-tracking the ongoing construction of 29 new substations and conclusion of tenders for 36 new substations located countrywide to further reinforce the system and enhance service delivery to customers”, Chumo said.
Government is working towards achieving a generation increase from the current 2000MW capacity to 5000MW by 2017.
“To secure revenue, we are planning to introduce smart metering systems to ensure billing accuracy for large power customers as well as reduced overhead costs. The company will enhance the Boresha Umeme [a programme to upgrade power supply systems throughout Kenya] aimed at constructing alternative power lines for the uninterrupted supply to improve quality and reliability of electricity. In addition, the company is accelerating the rate of connectivity throughout the country to grow our customer base, empower Kenyans and help grow the economy”, Chumo concluded.
Read the executive summary here.
(Pic Credits: Kenya Power)