Kenya Power profit hits KShs.24.47bn amid cost cuts, sales growth

By InstinctBusiness Oct 9, 20250

Kenya Power has announced a profit after tax of KShs.24.47 billion (over $189 million) for the 2024 financial year, driven by reduced costs, increased electricity sales, and enhanced system efficiencies.

Despite an 18.7% decline from the previous year’s KShs.30.08 billion(over $232 million), the company’s performance reflects strategic gains in affordability and operational improvements.

Total revenue reached KShs.219.29 billion (over $ 1.6 billion), with electricity sales rising by 887 GWh to 11,403 GWh, an 8% increase, fueled by higher customer uptake and sustained demand. Unit purchases grew by 787 GWh, while power purchase costs dropped by KShs 5.94 billion (over $ 45.9 million), attributed to forex gains from a stable Kenyan shilling against foreign currencies in power purchase agreements.

The cost of sales fell 4% from KShs.. 50.6 billion to KShs 14.6 billion, and operating expenses decreased by KShs 3.86 billion due to lower expected credit losses.

Dr. (Eng) Joseph Siror, Managing Director and CEO, highlighted the impact of lower tariffs: “The base tariff has been coming down over the last two years, reflecting the government’s commitment to affordability.

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This enables customers to consume more electricity, allowing us to leverage economies of scale while remaining profitable.” The company’s focus on affordability has supported its growth, with sales and customer connections driving financial stability.

Kenya Power’s customer base surpassed 10.1 million, with 401,848 new connections added. System efficiency improved to 78.79% from 76.84%, bolstered by grid upgrades and loss reduction initiatives. The Board of Directors, led by Chair Joy Brenda Masinde, recommended a final dividend of KShs.0.80 per share, following an interim dividend of KShs.0.20.

Masinde noted, “For the second consecutive year, we’re paying dividends, reinforcing investor confidence. Our share price has surged over 900% from KShs.1.38 to above KShs.15, reflecting trust in our transformation and sustainable growth.”