Kenya Power has recorded a Kes1.1 billion loss in half-year earnings compared to a Kes3.82 billion profit posted in the same period in 2021 for a period ended December 31 2022
Increased foreign exchange losses and the introduction of the 15% end-user electricity pricing decrease in January of last year were blamed for the decline.
The basic power revenue for the six-month period fell by Sh6.69 billion as a result of the tariff drop.
However, the Company recorded a 4.4 per cent growth in electricity sales to 4,764GWh for the period compared to a similar period last year.
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“The growth in sales was driven mainly by growing energy demand occasioned by increased economic activities and an expanded customer base,” the Company said.
Additionally, operating costs increased from Kes19.03 billion to Kes21.7 billion due to increased foreign exchange losses arising from the revaluation of outstanding payments to power generators denominated in foreign currencies as a result of the depreciation of the Kenya Shilling in the period.
On the other hand, non-fuel power purchase costs increased from Kes40.4 billion to Kes43.88 billion attributed to additional electricity purchases made during the period to support growth in demand.
Similarly, fuel costs increased from Kes10.8 billion in the previous period to Kes15.08 billion attributable to the significant increase in fuel prices during the period under review.
