Kenya Power has reported a net profit after tax of Shs 3,815 million in the half-year trading period ended 31 December 2021, compared to Shs 138 million realized in a similar period in 2020
This growth is mainly attributable to an increase in sales, enhanced system efficiency, and lower operating costs. Electricity sales recorded a 366GWh increase to 4,562GWh, an 8.7percent growth compared to a similar period last year.
This was driven by an increase in customer connectivity, as well as improved supply quality and reliability due to enhanced preventive maintenance works, network refurbishment, and accelerated faulty meter replacements.
This, combined with a 2.33 percent improvement in system efficiency which stood at 77.13 percent as at 31st December 2021, led to a 12.9 percent increase in electricity revenue which grew to Shs.69.447 Billion.
Operating costs decreased from Shs.20.132 Billion to Shs.19.036 Billion as a result of enhanced cost management and resource optimization initiatives that the Company is implementing as part of its turnaround strategy.
Non-fuel power purchase costs increased from Shs.38.123 Billion incurred in the previous period to Shs 40.487 Billion mainly due to additional unit purchases to support increased demand. Similarly, fuel costs increased from Shs.4.618 Billion to Shs.10.871 Billion mainly due to a 314 GWh increase in units purchased from thermal plants to 709 GWh due to low hydrology resulting from delayed rains, and an upsurge in fuel prices.
Finance costs increased to Shs.6.777 Billion from Shs.6.601 Billion the previous period mainly due to a rise in unrealised foreign exchange loss resulting from the depreciation of the Kenya shilling against major currencies.
Overdue customer debt, for the first time in five years, recorded a reduction of Shs.900 million as a result of enhanced field presence, continued government intervention with state agencies, and increased customer engagements. In the second half of the year, the business will primarily focus on domestic and SME customers who currently account for 67% of the Company’s outstanding debt.
Kenya Power continues to roll out a proactive strategy to enhance its cash position which is premised on the prioritization of payments of outstanding obligations. As a consequence, the Company reduced trade and other payables by over Shs.4 Billion. In addition, the business cleared overdrafts amounting to Shs.3.595 Billion.
Further to this, the Company closed the first half of the financial year with a cash position of Shs.8.347 Billion which includes ring-fenced funds projects, receipts from Government for the Last Mile, and street lighting programs, as well as funds for scheduled loan repayments.