Kenya Power staff at work along Nyerere Avenue in Mombasa. FILE PHOTO | KEVIN ODIT | NMG Kenya Power added 317,296 customers in the six months to December when the economy continued to recover from the Covid-19 pandemic disruptions.
The latest data from the Energy and Petroleum Regulatory Authority (Epra) shows that the utility had 8.59 million customers at the end of December last year, from 8.27 million in June 2021.
The increase in customer numbers will help the Nairobi Securities Exchange -listed firm grow revenues at a time when it is lowering electricity tariffs as part of the government’s plan to make power more affordable.
Kenya Power says more of its customers are now paying their bills, lifting its financial outlook.
“Overdue customer debt, for the first time in five years, recorded a reduction of Sh900 million as a result of enhanced field presence, continued Government intervention with state agencies, and increased customer engagements,” the company said when announcing its results for the half-year ended December.
“In the second half of the year, the business will primarily focus on domestic and SME customers who currently account for 67 percent of the company’s outstanding debt.”
Growing the customer base and reducing defaults will be critical in growing sales by countering the tariff reduction.
A 15 percent cut in electricity tariffs was gazetted in January in line with President Uhuru Kenyatta’s promise to offer relief for consumers and businesses hurting from the impact of the Covid-19 pandemic.
A further 15 percent reduction is set to be effected before June, marking the second phase of the cut in electricity costs.
The impact of the tariff reduction will start to be felt when Kenya Power publishes its results for the full year ending June.
The company reported strong profit growth in the half-year to December when it enjoyed higher tariffs compared to now.Net income increased 27.6 times to Sh3.8 billion from Sh138 million a year earlier. This came as sales jumped 21 percent to Sh83.5 billion.The additional customers helped raise electricity unit sales 8.7 percent to 4,562 Gigawatt hours (GWh). The company says its ongoing reforms will enable it to grow sales and reduce inefficiencies.“To build on the gains made on the turn-around strategy, which was launched in the last financial year, the business will in the second half, escalate initiatives aimed at growing sales, revenue collection, enhancing system efficiency, manage costs and importantly, improve customer experience,” the firm said. jmutua@ke.nationmedia.com