The Authority said public views must also be sought first before the nationwide roll-out of the tariffs/FILE NAIROBI, Kenya Oct 29-The Kenya Power and Lighting Company PLC (Kenya Power) has today announced a profit before tax of Kshs.8.2 billion for the period ending 30th June 2021, representing a 216% YoY growth compared to a loss before tax of Kshs.7.04 billion. The strong performance was mainly driven by growth in sales and revenue, as well as a double digit reduction in costs and expenses.
Unit sales for the year under review recorded a 5% growth from 8,171 GWh to 8,571 GWh which was mainly driven by 716,206 new customer connections who contributed an additional 400 GWh, and a rebound of the economy from the effects of the Covid-19 pandemic. All customer segments recorded growth, with Commercial and Industrial growing by 4.8%, Small Commercial by 5.1%, domestic customers by 4.9% and Street-lighting by 10.2%.
Revenue recorded an 8.2% jump from Kshs.133.3 billion the previous year to Kshs.144.1 billion, mainly due to anexpanded customer base, and heightened revenue protection activities driven by increased field presence.
Commenting on the results, the Chairman of the Board of Directors, Vivienne Yeda, noted that the strong performance was a credible indicator that the turn-around strategy, rolled out the previous financial year, was on course. The strategy focuses on five core focus areas, namely improving customer experience, growing sales, enhancing revenue collection, enhancing system efficiency, and prudent cost management.
“As a Company, we are pleased with this set of results because it is a clear demonstration that the investments we have made in driving a strong performance by the core business lines are beginning to bear fruits. Having said that, we are cognisant of the fact that a lot more needs to be done to fully transform Kenya Power into a 21st century organisation,” said the Chairman.
In the year under review, the Company also undertook greater cost management and resource optimisation initiatives. As a result, operating expenses dropped by 17% from Kshs.47.8 billion to Kshs.39.9 billion mainly due to a reduction in provisions for trade and receivables from Kshs.3.27 billion the previous year to Kshs.354 million, which was mainly driven by accounting for revenue, and enhanced revenue collection initiatives.
Finance costs also registered a 27% reduction from Kshs.12.5 billion in FY2020/21 to Kshs.9 billion due to a decrease in interest on loans and overdrafts as a result of a Kshs.20.26 […]
