Kenya Power has posted a 18 percent dip in full-year earnings, with a profit after tax of KShs.24.47 billion.
This is despite stronger electricity sales, improved system efficiency, and lower operating costs.
According to the company’s audited results for the financial year ended June 2025, profit before tax stood at KShs.35.38 billion, while total revenue climbed to KShs.219.29 billion, underscoring a turnaround from years of volatile performance and financial strain.
The state-controlled utility, which dominates Kenya’s electricity transmission and distribution, said total electricity sales increased by 887 gigawatt hours (GWh), reflecting expanding industrial and domestic consumption. The company attributed the growth to “higher customer uptake and improved system reliability,” even as broader economic activity rebounded from recent inflationary pressures.
A notable factor behind the bottom line was a KShs.5.94 billion reduction in power purchase costs, driven largely by foreign exchange gains on dollar-denominated power purchase agreements (PPAs). The Kenyan shilling’s recent appreciation, alongside tighter control of fuel costs, provided significant relief to the utility’s cost structure.
Kenya Power management said the company’s financial recovery reflects deliberate reforms to cut technical and commercial losses, which had previously weighed on margins. “The performance demonstrates the positive impact of efficiency measures and continued investment in grid modernisation,” the utility said in a statement on its website.
Turning the corner
Kenya Power’s results mark improvement from its inconsistent earnings in prior years, when rising fuel prices, currency depreciation, and mounting debt obligations eroded profitability.
In 2023, the company had warned of liquidity pressures linked to high system losses and delayed tariff adjustments.The latest figures suggest that Kenya Power has turned a corner, buoyed by growing demand across industrial, commercial, and small business segments.
Unit purchases rose by 787 GWh, signalling sustained demand growth in key economic sectors such as manufacturing and construction.However, analysts warn that long-term sustainability will depend on how effectively the firm manages legacy debt, addresses grid inefficiencies, and integrates more renewable energy sources.
“While these results are encouraging, the structural challenges remain,” said one Nairobi-based energy analyst. “Kenya Power must continue to modernise its network and ensure pricing reforms align with investment needs.”
Outlook
Looking ahead, KPLC expects electricity demand to grow in tandem with Kenya’s industrial expansion and the government’s plan to connect more rural households to the national grid. The company has also pledged to intensify investments in smart metering and loss reduction technologies to enhance system reliability.Despite persistent risks — including tariff pressures, foreign exchange exposure, and infrastructure financing needs — the latest results offer a more optimistic outlook for the utility. For now, Kenya Power appears to have restored some investor confidence, signalling a cautiously brighter future for one of East Africa’s most critical energy institutions.
Full results available at:https://tinyurl.com/KPLCFullYearResults2025
