Kenya Power posts KSh24.99bn as revenue climbs 8.6% in FY2026

Kenya Power and Lighting Company PLC (Kenya Power) has reported a 2.1% increase in profit after tax to KSh24.99 billion for the financial year ended June 30, 2026, up from KSh24.47 billion recorded in the previous financial year.

The audited results show that the company’s revenue from contracts with customers increased to KSh238.24 billion, compared with KSh219.29 billion in 2025, representing growth of about 8.6%. Kenya Power attributed the revenue growth largely to higher electricity sales and increased demand across customer categories.

Gross margin also improved from KSh74.62 billion to KSh85.59 billion, while profit before tax rose marginally from KSh35.38 billion to KSh36.01 billion.

Electricity Sales Drive Revenue Growth

According to the results, total electricity sales rose 12.05% to 12,777 GWh, up from 11,403 GWh in the previous year. The growth was supported by higher sales across customer categories and the addition of 411,710 new customers during the year.

The company also reported improved distribution and transmission efficiency, which rose from 78.79% to 81.42% during the year.

Kenya Power said its revenue performance was further supported by enhanced revenue-protection initiatives.

Finance Costs Decline

The company’s financial performance was also supported by a significant reduction in finance costs.

Finance costs declined from KSh4.72 billion in 2025 to KSh3.08 billion in 2026, representing a reduction of about 34.7%. The decline was attributed primarily to lower interest expenses following a reduction in outstanding loan balances.

However, operating expenses increased from KSh42.42 billion to KSh53.75 billion, with the company attributing the increase partly to higher expected credit losses, staff costs, depreciation and other operating expenses.

Balance Sheet Strengthens

Kenya Power’s total assets increased from KSh389.04 billion to KSh421.49 billion, representing an increase of KSh32.45 billion.

The company said the growth was supported by continued investment in the expansion, reinforcement and modernisation of its electricity network. Capital expenditure during the year stood at approximately KSh28 billion.

The company also recorded a major improvement in its working capital position, moving from a negative KSh19.21 billion in June 2025 to a positive KSh1.90 billion at June 30, 2026.

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This represented an improvement of KSh21.11 billion and strengthened the company’s short-term liquidity position.

Borrowings and Gearing Improve

Kenya Power’s total borrowings declined to KSh79.82 billion, while borrowings due within one year fell to KSh10.64 billion.

The company reported that its gearing ratio improved from 73% to 55%, while its debt-to-equity ratio declined from 0.80 to 0.60.

Shareholders’ equity increased from KSh109.34 billion to KSh131.80 billion, while current liabilities declined from KSh117.43 billion to KSh120.01 billion.