Kenya Power has posted a net profit of Sh24.83 billion for the financial year ended June 2026, supported by higher electricity sales, increased customer connections and improved efficiency in managing power distribution losses.
The utility's revenue grew by 8.7 per cent to Sh238.24 billion, up from Sh219.28 billion recorded in the previous financial year, reflecting increased electricity demand and growth in its customer base.
Its gross margin also improved to Sh85.59 billion from Sh74.62 billion, while profit before tax stood at Sh36.01 billion during the period.
However, the improved financial performance came alongside higher operating expenses, which rose to Sh53.75 billion from Sh42.42 billion. The cost of purchasing electricity also increased from Sh144.66 billion to Sh152.65 billion, reflecting the higher volumes needed to meet growing demand.
In its annual abridged financial report released on Thursday, November 5, Kenya Power attributed the results to continued investment in infrastructure, better management of its core operations and efforts to strengthen its financial position.
The company also reported a major improvement in its working capital, moving from a deficit of Sh19.21 billion in June 2025 to a surplus of Sh190 million by June 2026.
Its performance on the Nairobi Securities Exchange also improved, with the volume-weighted average share price rising from Sh11.50 in June 2025 to Sh17.15 in June 2026, representing a 49.33 per cent increase.
The Board of Directors has recommended a final dividend of Sh1.20 per ordinary share for the financial year, subject to approval by shareholders during the company's 105th Annual General Meeting scheduled for November 27, 2026.
The dividend is expected to be paid on or about December 31, 2026, to shareholders whose names will appear in the company's register by November 27.
This will be in addition to the interim dividend of Sh0.30 per ordinary share, which was paid on March 27, 2026.
On its operational performance, Kenya Power reported a decline in electricity system losses, which fell from 21.20 per cent to 18.58 per cent during the financial year.
The reduction followed investments in strengthening the distribution network, preventive maintenance, automation and efforts to detect and recover electricity consumed but not properly accounted for.
At the same time, peak electricity demand increased by 8.6 per cent, rising from 2,316 megawatts to 2,514 megawatts, placing greater pressure on the country's electricity supply infrastructure.
To meet the growing demand, an additional 715 megawatts of generation capacity was added during the year, while another 60.5 megawatts was undergoing commissioning at KenGen's Olkaria facility.
Kenya Power also announced plans to double electricity imports from Ethiopia from 200 megawatts to 400 megawatts during the current financial year as part of efforts to strengthen supply.
The utility continued expanding electricity access through the Last Mile Connectivity Programme and the Kenya Off-Grid Solar Access Project.
Under the initiatives, the company supported the development of 89 solar mini-grids and 343 stand-alone solar systems, alongside connecting more households and businesses to the electricity network.
Its customer base included 226,805 commercial customers, among them 539 premium customers, as well as 184,907 customers connected through the Last Mile programme.
The additional connections generated 147 gigawatt-hours in electricity sales and brought in approximately Sh4.05 billion in revenue.
Customer service and future plans
Kenya Power also recorded an improvement in customer satisfaction, with its rating rising from 72 per cent to 74 per cent during the year.
Its Net Promoter Score, which measures customers' willingness to recommend the company, also improved from negative 12 per cent to positive five per cent.
The company attributed the gains to investments in digital services, self-service platforms, information technology systems and staff training aimed at improving service delivery.
Beyond its core electricity business, Kenya Power spent Sh136 million on social initiatives during the financial year. The projects covered energy and environmental conservation, education and skills development, as well as community wellness.
Board Chairperson Joy Brenda Masinde said the company had maintained resilience despite changes in the policy, regulatory and operating environment.
She noted that the implementation of the Government Owned Enterprises Act, 2025, provided an opportunity to improve governance, financial sustainability and operational efficiency.
Managing Director and Chief Executive Officer Dr Joseph Siror said the company would focus on improving grid reliability, reducing electricity losses, increasing sales and strengthening revenue collection in the coming financial year.
He added that Kenya Power would accelerate its digital transformation, develop additional sources of revenue and improve returns from its investments as it seeks to build stronger financial and operational foundations.