The Kenya Power and Lighting Company (KPLC) recorded earnings of Kes 30 billion for the full year ending June 2024, compared to Kes 3.19 billion posted in the previous year.
According to the utility company, the growth was attributed to increased electricity sales and reduced finance costs due to a stronger Kenyan shilling.
KPLC reported a 21 percent rise in electricity sales, reaching Kes231.12 billion from Kes190.98 billion.
This increase was attributed to 447,251 new customer connections and heightened economic activity, especially in the manufacturing sector.
Sales growth was strongest in the commercial, industrial, and domestic customer categories, up by 5.1 percent and 5.5 percent, respectively.
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Kenya Power Managing Director and CEO Joseph Siror said a reduction in finance costs by Kes 24.84 billion attributed to Kes 7.88 billion foreign exchange gain, compared to a Kes 16.87 billion loss in the previous period.
The gain resulted from the Kenyan shilling’s appreciation against the US dollar and euro, which comprise 90 percent of the company’s loan portfolio.
“With revenue in Kenya shillings but most power purchases in foreign currencies, the shilling’s strength in the latter half of the year helped contain sales costs, enhancing gross margins,” Siror stated.
Power purchase costs increased to Kes 150.61 billion, up from Kes 143.58 billion, due to increased units purchased to meet higher demand and prevailing exchange rates.
This includes a 92 percent rise in wheeling charges for the expanding transmission network and the hiring of additional technical staff to support operations.
