Kenya Power Reports KSh24.47 Billion Profit Fueled by Strong Sales and Lower Purchase Costs.

Kenya Power Reports KSh24.47 Billion Profit Fueled by Strong Sales and Lower Purchase Costs.

From left: Eng. Isaac Kiva, Secretary for Renewable Energy at the State Department for Energy; Joy Brenda Masinde, Chairperson of the Kenya Power Board; Dr. (Eng.) Joseph Siror, Managing Director and Chief Executive Officer, Kenya Power; and Stephen Vikiru, General Manager, Finance, during the announcement of Kenya Power’s financial results for the year ended June 2025.

Nairobi - October 7, 2025

Kenya Power and Lighting Company (KPLC) has posted a profit after tax of KSh24.47 billion for the 2024/2025 financial year, driven by increased electricity sales, lower power purchase costs, and enhanced operational efficiency.

The company’s total revenue for the year stood at KShs.35.38 billion, while profit before tax matched the same figure. However, profitability dipped by 18.7% compared to the KShs.30.08 billion posted in the previous financial year, reflecting increased operational costs and tariff adjustments during the period.

According to the company’s financial statement, total electricity sales rose by 887 GWh to 11,403 GWh, representing an 8% growth, supported by higher customer uptake. Unit purchases also increased by 787 GWh, indicating sustained growth in demand.

The utility recorded a KShs.5.94 billion reduction in power purchase costs, attributed to forex gains from foreign currency-denominated Power Purchase Agreements (PPAs), following the relative stability of the Kenyan shilling against major international currencies. As a result, the overall cost of sales declined by 4%, from KShs.150.6 billion to KShs.144.6 billion, helping cushion profitability.

Kenya Power Managing Director and CEO, Joseph Siror, said the company’s financial performance was underpinned by improved efficiencies and a strategic focus on affordable power delivery.

"The base tariff has been coming down over the last two years, reflecting the government’s commitment to lowering the cost of electricity. This is a positive move for consumers as it makes power more affordable and encourages higher consumption,” said Siror. “You can already see that impact in our results this year, we sold more units at a lower price and still remained profitable.”

Operating expenses decreased by KShs.3.86 billion, largely due to lower expected credit losses as a result of improved customer payment behavior and stable macroeconomic conditions.

To reward shareholders, the company’s Board of Directors has recommended a final dividend of KShs.0.80 per ordinary share, following an interim dividend of KShs.0.20 per share paid earlier in the year.

Board Chairperson Joy Brenda Masinde said the consistent dividend payout was a reflection of the company’s strengthened financial health and growing investor confidence.

“For the second year in a row, the company is paying a dividend to investors and we remain confident that as performance improves, this will be sustained,” she said. “Kenya Power’s share price has appreciated by more than 900%, rising from KShs.1.38 in December 2023 to over KShs.15, underscoring renewed investor confidence in our transformation and long-term value creation.”

From a customer service perspective, Kenya Power surpassed the 10 million customer milestone, connecting 401,848 new customers during the year to reach a total of 10.1 million.

The company also achieved significant improvements in system efficiency, with distribution and transmission efficiency rising to 78.79% from 76.84% the previous year. This was attributed to ongoing grid upgrades, system reinforcements and loss reduction initiatives across its network.

As the utility continues to implement reforms under its transformation agenda, the management expressed optimism that ongoing operational efficiencies, digital innovations and customer-focused strategies will drive sustainable growth and profitability in the coming years.