KPLC on Monday announced solid financial performance for the first half of the fiscal year 2025/26, demonstrating resilience amid rising operational costs and a dynamic economic environment.
The company’s latest earnings statement reveals a significant 6.93 percent year-on-year increase in revenue from customers, reaching Sh114.87 billion, up from Sh107.43 billion in the same period last year.
The firm’s gross profit also improved by 5.88 percent, rising to Sh38.17 billion compared to Sh36.05 billion in the first half of FY2024/25.
This growth was achieved despite a 10.43 percent decline in other income, which fell from Sh3.36 billion to Sh3.01 billion, highlighting the company’s strong core revenue streams from customer operations.
Operating costs increased by 6.02 percent to Sh25.16 billion, compared to Sh23.74 billion in the previous year.
Kenya Power’s management attributes this rise to continued investment in infrastructure and operational expansion, aimed at improving service delivery and meeting growing energy demands.
“The operating profit rose modestly by 2.18 percent, from Sh15.68 billion to Sh16.02 billion,” the company reported, reflecting an ability to manage costs effectively despite the inflationary pressures.
Finance costs declined significantly by 25 percent, from Sh1.97 billion to Sh1.48 billion, a positive sign of improved debt management.
This was complemented by a reduction in interest income by 18 percent to Sh0.30 billion, which did not materially affect the bottom line.
Kenya Power’s profit before tax increased by 5.47 percent to Sh14.83 billion, while profit for the period grew by 4.34 percent to Sh10.40 billion from Sh9.97 billion the previous year.
Earnings per share (EPS) also rose to Sh5.33 from Sh5.11, marking a 4.31 percent improvement.
The company’s balance sheet remained robust, with total assets increasing by 2.09 percent to Sh397.02 billion.
Shareholders’ equity grew by 8.06 percent to Sh118.18 billion, reflecting improved value for investors.
Total borrowings reduced by 6 percent to Sh84.23 billion, signaling a cautious approach to leveraging and a focus on sustainability.
Cash from operations surged by 20.90 percent, from Sh11.65 billion to Sh14.09 billion, reaffirming strong liquidity and operational efficiency.
This boost in cash flows has enabled Kenya Power to increase its interim dividend by 50 percent, paying Sh0.30 per share compared to Sh0.20 in the same period last year.
The results signal Kenya Power’s continued commitment to balancing growth with financial prudence.
The company’s performance in H1 FY2025/26 reflects strategic investments in infrastructure and improved operational management, which have helped it navigate cost pressures while delivering enhanced value to shareholders.
This robust set of results provides a positive outlook for the rest of the fiscal year as Kenya Power focuses on expanding access to electricity and supporting Kenya’s economic growth.
With energy demand rising across the region, Kenya Power’s financial health and operational gains position it well to meet future challenges and capitalize on emerging opportunities in the power sector.
