NAIROBI – The Kenya Power and Lighting Company PLC (Kenya Power) announced Friday, it had bounced back to profit making ways.
Kenya Power in a press release said it made Kshs 8.2 billion profit before tax for the financial year ending June 30, 2021.
According to Kenya Power, the profit was due to a growth in sales and revenue in the above mentioned period.
The power company also reported that it realised a double digit reduction in costs and expenses, contributing to the profit margin.
The profit was a 216% YoY growth from a Kshs 7.04 billion loss before tax the previous year.
In its report, units sales grew by 400 GWh to 8571, translating to 5%. This was due to 716,206 new customer connections.
The company claimed that all its customer segments recorded growth, even as the rest of the country was suffering from the effects of Covid-19.
Kenya Power realised the growth of Commercial and Industrial growing by 4.8%, Small Commercial by 5.1%, domestic customers by 4.9% and Street-lighting by 10.2%.
In the year under review, the Company also undertook greater cost management and resource optimisation initiatives.
This saw operating expenses drop by 17% from Kshs.47.8 billion to Kshs.39.9 billion. The was also a reduction in provisions for trade and receivables from Kshs.3.27 billion the previous year to Kshs.354 million.
Finance costs also dropped from Kshs.12.5 billion in FY2020/21 to Kshs.9 billion.
Kenya Power reported that there was a decrease in interest on loans and overdrafts as a result of a Kshs.20.26 billon repayment of commercial loans which included the partial conversion of overdrafts into a term loan.
This led to an 8.2% increase in revenue to Kshs 144.1 billion from Kshs 133.3 billion the previous year.
The company also credits its positive reporting to its Advanced Metering Infrastructure (AMI) project.
The Chair Board of Directors, Vivienne Yeda said the turn-around was due to a five point strategy they had put in place.
According to Yeda, their focus is improving customer experience, growing sales, enhancing revenue collection, enhancing system efficiency, and prudent cost management.
“As a Company, we are pleased with this set of results because it is a clear demonstration that the investments we have made in driving a strong performance by the core business lines are beginning to bear fruits. Having said that, we are cognisant of the fact that a lot more needs to be done to fully transform Kenya Power into a 21st century organisation,” said the Chairman.