Kenya Power has reported an 18.7% decline in profit to Sh24.47 billion for the financial year 2024/25, down from Sh30.08 billion in the previous year. This drop is attributed to lower electricity tariffs that offset the gains from higher unit sales and improved system efficiencies.
Despite the decline, the company will pay a final dividend of Sh0.80 per share, bringing the total dividend for the year to Sh1 per share.
During the year, the overall cost of sales decreased by 4%, resulting in savings of Sh5.94 billion. These savings were largely due to the stability of the Kenyan shilling against major foreign currencies, in which most Power Purchase Agreements (PPAs) are denominated.
“The base tariff has been coming down over the last two years, reflecting the government’s commitment to lowering the cost of electricity. This is a positive move for consumers as it makes electricity more affordable,” said Kenya Power Managing Director and CEO, Dr. (Eng) Joseph Siror.
He added: “This also benefits the company as we can leverage economies of scale to remain profitable. You can already see this impact in our results—we sold more units at a lower price and still remained profitable.”
Operating expenses decreased by Sh3.86 billion, largely due to lower expected credit losses, reflecting improved macroeconomic conditions and better customer payment behavior.
The Board of Directors recommended a final dividend of Sh0.80 per ordinary share, having already issued an interim dividend of Sh0.20 per share earlier in the year.
“For the second year in a row, the company is paying a dividend to investors. We remain confident that, as our financial performance improves, dividend payments will be sustained. This has significantly strengthened investor confidence in the company,” said Board Chairperson Joy Brenda Masinde.
She noted that Kenya Power’s share price has appreciated by more than 900%, rising from Sh1.38 in December 2023 to over Sh15 currently—reflecting renewed investor confidence in the company’s transformation and long-term value creation.
However, a new challenge looms as Kenya Power faces pressure from MPs proposing a cap on wholesale electricity pricing at Sh9 per unit. This contrasts with the current “feed-in” tariff rate of Sh15.50, which legislators argue has burdened consumers. The proposal aims to shield Kenyans from soaring electricity bills.
Kenya Power also surpassed the 10 million customer mark during the year, connecting 401,848 new customers and expanding its total customer base to over 10.1 million.
Furthermore, the utility improved its distribution and transmission efficiency to 78.79%, up from 76.84% the previous year, thanks to ongoing grid upgrades, system reinforcements, and loss reduction initiatives.
