Kenya Power posts Sh1.14b half-year loss on reduced electricity revenue
Kenya Power (KP) has reported an after tax loss of Sh1.14 billion for the half year period to December 31, 2022. In a statement, the company attributed the loss to increased foreign exchange losses and implementation of the 15 per cent reduction of the end user electricity tariff as recommended by the government in January 2022, a factor that weighed down on 4.4 per cent growth in electricity sales.
“As a result of the tariff reduction, the basic electricity revenue for the six months period decreased by Sh6,696 million,” the company stated. In the review period, profit before tax also decreased to Sh1.6 billion fromSh5.7 billion in a similar period last year.
Electricity sales
Growth in electricity sales of 4,764 Gwh during the review period was driven mainly by growing energy demand occasioned by increased economic activities and an expanded customer base, the utility generator said. Operating costs increased from Sh19 billion to Sh21.7 billion due to increased foreign exchange losses arising from the revaluation of outstanding payments to power generators denominated in foreign currencies as a result of depreciation of the shilling.
Non-fuel power purchase costs increased from Sh40.5 billion to Sh43.9 billion owing to additional electricity purchases made during the period to support growth in demand. Similarly, fuel costs increased from Sh10.9 billion in the previous period to Sh15.1 billion attributable to significant increase in fuel prices during the period under review.
Major currencies
Finance costs increased to Sh7.4 billion from Sh6.8 billion resulting from a rise in unrealised foreign exchange loss arising from revaluation of foreign-denominated loans as a result of depreciation of the shilling against major currencies.
