Baskadia

Kenya Power's net earnings for the six months that ended in December 2023 were Ksh.319 million.

The power business reported on Friday that it had turned around from a net loss of Ksh. 1.1 billion in the previous quarter, citing a solid revenue performance.

The gain was ascribed to higher power sales, the introduction of a cost-reflective price, and the rollout of the Rapid Results Initiative (RRI), which aims to expedite meter installation in accordance with the push for nationwide connection.

"I am glad to note that our sales growth was driven by our deliberate effort to grow our customer numbers, having surpassed our connectivity target for the half year period by 13.87% with a total of 225,000 new customers to the grid," stated Dr. Joseph Siror, our CEO and managing director.

Although the company reports that their foreign exchange effect increased by Ksh.11 billion in the same quarter, a volatile shilling continues to be a major concern.

Kenya Power's overall spending for the half-year ended in December was Ksh.19.7 billion, after the business was forced to spend an additional Ksh. 1.7 billion.

Kenya Power's increased expenditure was mostly brought on by a rise in labor costs after hiring more employees to support field operations, which the business claims improved customer service and overall operational efficiency.

The company's revenue from sales of energy climbed by 31%, from Ksh.86.6 billion to Ksh.113.5 billion, bringing it back to profitability.

Additionally, the company's financing costs went from Ksh. 7.3 billion to Ksh. 15.02 billion over the same time last year, or Ksh. 7.6 billion.

The depreciation of the Kenyan shilling versus major foreign currencies, in which the majority of the loan portfolio is denominated, is said to be the cause of the increase in unrealized foreign exchange losses on loan revaluations.

Kenya Power noted that in order to reduce costs, it has implemented a number of methods, such as boosting sales, improving system efficiency, improving customer experience, and expanding nationwide connectivity.

The electricity supply business also voiced hope for the future, citing the strengthening of the Kenyan shilling vs the US dollar as reasons for confidence.

We are pleased to see that, in comparison to the US dollar and other major currencies, the shilling is strengthening at the moment. In order to reduce our exposure to foreign exchange risk and close the year in a better financial position, we hope that this encouraging trend continues for the remainder of the year, Dr. Siror stated.