Kenya Power and Lighting Company Plc (KPLC) announced an uplifting performance for the six months ended 31 December 2025.
The national electricity distributor recorded a profit after tax of Sh10.40 billion, marking a notable increase of Sh433 million from the Sh9.97 billion reported in the same period the previous year.
This increase was mirrored in profit before tax, which grew by 5.5% to reach Sh14.83 billion, up from Sh14.06 billion, due to a period of strengthened profitability. The driving force behind this performance is the 6.9% growth recorded in revenue, which surged to Sh114.87 billion from Sh107.42 billion.
This revenue boost was fundamentally powered by a 10.5% increase in total electricity unit sales, which reached 6,086 Gigawatt-hours, reflecting a rising national demand for power. Also, the company made strides in operational efficiency, with its distribution loss rate improving marginally from 78.35% to 77.97% as a result of ongoing network performance enhancements and loss-reduction initiatives.
However, this growth came with increased costs as power purchase expenses, a major component of the cost of sales, rose by Sh5.33 billion to Sh76.70 billion. This was further aligned with the 8.3% increase in total energy purchases to 7,807 GWh.
Despite that, there was a decrease in finance costs, which reduced by Sh492 million to Sh1.48 billion. This reduction stemmed from scheduled loan repayments and an overall decrease in debt levels as part of the company’s focused efforts to strengthen its balance sheet.
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In fact, total borrowings were reduced by 6% to Sh84.23 billion by the end of December 2025. This financial prudence has also alleviated pressure on working capital, with the negative working capital position improving significantly from Sh19.21 billion in June 2025 to Sh12.54 billion by year-end.
Operating expenses, although, saw an increase of Sh1.43 billion to Sh25.16 billion, attributed to higher provisions for customer debts, increased depreciation from newly capitalized network projects, and staff-related costs.
As a result of this performance, the Board of Directors has declared an interim dividend of KSh 0.30 per share, payable to shareholders on the register by 23 February 2026. This decision aligns with the company’s dividend policy and rewards investor confidence following the results.
Looking forward, Kenya Power looks to maintain this momentum. The company plans to safeguard supply adequacy amidst growing demand, accelerate its loss reduction programme, and advance critical grid modernization and digitization projects.
These initiatives aim to further enhance service reliability, improve customer experience, and lay a solid foundation for long-term, sustainable growth, ultimately powering the nation while creating enduring value for its stakeholders.
