Kenya Power Full Year Profit: Kenya Power has posted a ninety two per cent fall in full year profit. The power provider announced that its profit had fallen from Sh. 3.27 billion to just Sh. 262 million for the year ended June 2019. This represented a fall of 91.8 per cent.
Ironically, Kenya Power’s revenue rose by 1.34 percent to Sh. 133.1 billion on more electricity sales. This was growth was neutralized by what Kenya Power termed as high power purchase and finance costs.
Finance costs rose by Sh.3.2 billion or 46.35 percent to Sh. 10.3 billion due to increased levels of short term borrowings and foreign exchange losses. Power purchase costs, including fuel and foreign exchange costs, increased by Sh. 6 billion to Sh. 90.1 billion.
“This was mainly attributable to increase in non-fuel power purchase costs by Sh. 18 billion from Sh. 52.7 billion to Sh. 70.8 billion following the commissioning of two power plants with a combined generation capacity of 360MW during the period,” said Kenya Power.
Kenya power recorded a profit before tax of Sh. 334 million in the year ending June 2019 compared to Sh. 4.968 billion logged in a similar period the previous year.