Kenya Power has posted Sh. 1.1 billion loss in the first six months of its financial year. The power provider that enjoys monopoly in the country posted a loss of Sh. 1.14 billion for the half year period ended December 2022.
In the previous year, Kenya Power had recorded Sh. 3.8 billion full year net profit.
Kenya Power has blamed the loss on a weak shilling that has dipped to lows of Sh. 126 against the US dollar, and the cuts in cost of power that were implemented by former President Uhuru Kenyatta.
The costs were shouldered by Kenya Power after the government failed to cancel punitive power contracts with independent power providers (IPPs).
“This drop is attributable to increased foreign exchange losses and the implementation of the 15 per cent reduction of the end user electricity tariff as recommended by the government in January 2022,” said Kenya Power.
According to Kenya Power, the 15 per cent reduction in power prices saw the basic electricity revenue earned by during the six-month period decrease by Sh. 6.69 billion. This was despite an increase in sales.
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With the weakening shilling, operating costs increased to Sh. 21.72 billion from Sh. 19 billion in the six months to December 2021 while fuel costs rose to Sh. 15.08 billion from Sh. 10.87 billion owing to higher fuel prices during the period.