Kenya Power and Lighting Company (KPLC) emerged from a loss-making territory or Net Loss of Kes 939 Million in 2020 to Net Profit of Kes 1.490 Billion for the financial year ended 30th June 2021, an increase of 16.08%.
According to its audited financial results for the year ended 30th June 2021, the state-owned electricity distributor made a pre-tax profit of Kes 8.2 Billion in 2021 compared to a pre-tax loss of Kes 7.04 Billion in 2020, an increase of Kes 15.2 Billion or 216.42%.
Directors of the utility firm attribute the positive growth to an 8.4% increase in electricity revenue as a result of growth in electricity sales by Kes 9.8 Billion to Kes 125.9Billion.
An increase in electricity revenue was driven mainly by growth in unit sales of 400 GWh from 8171 GWh in 2020 to 8,571 GWh in 2021 owing to an expanded customer base and increased economic activity.
Operating costs-which includes transmission, distribution and administration cost declined- by Kes 7.9 Billion from Kes 47.8Billion in 2020 to Kes 39.9Billion at the end of June 30th, 2021.
KPLC balance sheet size grew to Kes 332.2 Billion in 2021 compared to Kes 325.3 Billion in 2020.
Finance costs reduced from Kes 12.5 Billion in 2020 to Kes 9.1 Billion in 2021 following the partial conversation of overdrafts and continued repayment of commercial loans. In addition, the unrealised forex losses were reduced due to prudent planning of forex transactions.
The firm lowered its operating expenses by 17% from Kes 47.8 Billion in 2020 to Kes 39.9 Billion in 2021 due to lower provisions as a result of enhanced revenue collection and prudent cost management as well as resource optimization initiatives implemented during the year.
KPLC Outlook and Dividend
KPLC says it will remain at the forefront of driving the ongoing dialogue on power purchase agreements to make electricity more affordable to customers and boost Kenya’s competitiveness as a business hub.
Directors of the firm have not recommended the payment of any dividends to its shareholders.
