Kenya Power FY pretax profit jump 55.2% - CNBC Africa

Kenya Power FY pretax profit jump 55.2%

East Africa

by Elayne Wangalwa 0

Kenya Power, has posted a 55.2 per cent rise in its pretax profits for its full year results. PHOTO: Getty Images

The firm that supplies electric power and energy services across the country recorded 10.2 billion Kenyan shillings in its profit before tax. This positive performance is credited to higher tariffs, increased sales and enhanced systems efficiency.

The listed company’s non-fuel revenue increased to 62.6 billion Kenyan shillings for the full year from 47.9 billion Kenyan shillings recorded at a similar period the previous year.

Total revenue was up 26.5 per cent for the period under review to 105.4 billion Kenya shillings, as a result of a 30.6 per cent growth in electricity sales.

During the year, the company saw its non-current assets grow by 23 billion while transmission and distribution costs came in 8.1 per cent higher to 22.7 billion Kenya shillings.

(READ MORE: Kenya Power targets a 36% rise in new customers this fiscal year)

The East African country is looking at increasing its national power output to 5,000 megawatts (MW) by 2016 in order to spur industrial growth. The 5,000MW power policy will help meet Kenya’s growing demand for electricity through geothermal sources in order to transform it into an industrialised country.  

The government is looking to lower the cost of power in the country by up to 30 per cent through the injection of cleaner geothermal power into the national grid. Last week, 140 MW of the President commissioned 140 MW geothermal power plant, another 140 MW will be added by the end of this year

The Kenyan government said that it will spend about 2 billion US dollars in the medium term to upgrade its power distribution systems.

In August, the utility firm announced plans to connect one million additional customers to the national grid in order to hasten the rate of connections which saw the company record 443,000 new customer connections an increase of 44 per cent recorded the previous year. This will represent a 36 per cent growth and is part of a larger plan by the government to increase electricity penetration to 70 per cent by 2020, currently it stands at 32 per cent.

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