Listed electric power supplier Kenya Power and Lighting Company (KPLC) has recorded an 18.7% decline in after-tax profit for the financial year ended June 30, 2025, to KES 24.47 billion compared to KES 30.08 billion in the previous financial year. The energy firm’s downturn in net profit was attributed to a decline in revenue and a spike in borrowing costs.
Key Performance highlights
- Revenue: down 5.1% to KES 219.29 billion
- Operating Profit: fell by 4.9% to KES 39.47 billion
- Finance costs: KES 4.72 billion
- Profit Before Tax: dropped by 19% to KES 35.38 billion
- Total Assets: rose by 8.6% to KES 389 billion
Revenue dropped by KES 11.84 billion to KES 219.29 billion, mainly due to reduced foreign exchange recoveries and the lower tariff yield introduced during the period to reduce customers’ bills .
The company’s operating costs contracted to KES 42.42 billion from KES 46.28 billion in FY2024, largely driven by lower anticipated credit losses. In the period under review, the firm set aside less money for unpaid customer bills after reforming its credit loss model to reflect current economic conditions and payment trends.
In the review period, KPLC saw increased Power demand, with sales rising by 887 GWh as more customers used electricity. In a bid to meet the stronger demand, Kenya Power increased its unit purchases by 787 GWh. The company’s distribution and transmission efficiency improved to 78.79% from 76.84% in FY2024, underpinned by grid upgrades, system boosts, and measures to cut electricity losses.
In the financial year ended June 2025, new peak demand levels were recorded. Kenya power recorded a peak demand of 2,316.2MW on February 12, 2025, up 6.4% from a peak demand of 2,177MW in the previous year. Notwithstanding the higher volume of electricity uptake, KPLC cut its power purchase expenses by KES 5.9 billion year-on-year due to the stability in the Kenyan shilling. During the period under review, the Kenyan shilling was steady, exchanging at an average of KES 129 per U.S. dollar.
KPLC’s Finance costs spike
The utility’s borrowing costs surged to KES 4.72 billion from a net gain of KES 682 million in the previous year, primarily due to a flip from a previously booked KES 7.89 billion foreign exchange gain on loan revaluations to a KES 794 million loss as the local currency stabilised. However, Kenya Power’s interest costs dropped by KES 2.58 billion, as the company strived to settle its commercial loans. Consequently, the utility trimmed its loan book by 11% to KES 87.64 billion, improving the company’s long-term financial health by cutting future interest burdens.
Dividend and Future outlook
In addition to the KES 0.20 interim dividend paid earlier, Kenya Power board of directors proposed a final dividend of KES 0.80 per ordinary share, up from KES 0.70 last year. If approved, the dividend will be paid on or about January 30, 2026, to shareholders.
“Building on this momentum, the Board is pleased to recommend a final dividend of KShs.0.80 per ordinary share for the year ended 30 June 2025, subject to applicable withholding tax, to shareholders on the register at the close of business on 2 December 2025. If approved by shareholders, the dividend will be paid on or about 30 January 2026,” said KPLC.
Looking forward, KPLC remains focused on improving reliability, cutting losses, increasing customer connections, driving digital transformation, and supporting a smarter energy network.
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