Kenya Power is focusing on finance costs and increased customer connections following a profit slump Q1 of 2018.
Kenya Power’s net profit for the six months ended December 2017 reduced by 30.3 percent to Sh2.93 billion due to the high cost of financing its debt and decreasing power consumption coupled with a slow economy.
Financing costs increased by 42.7 percent (Sh976 million) to Sh3.3 billion in the aforementioned period hence reducing profits even though total revenue increased by 14.8 percent (Sh67.1 billion).
“The decrease [in profit] was attributed to the general slowdown of the economy and an increase in financing costs[…]which rose during the period under review compared to the previous year as a result of utilisation of short-term facilities,” Kenya Power stated.
The company said its electricity sales rose by 2.3 percent from 3.805 to 3,893-gigawatt hours (GWh) in the period. As a result, sales revenues rose to 46.93 billion at a percentage of 2.5.
On the other hand, the sum operating costs rose by 17.4 percent to Sh59.3 billion mainly because of greater fuel costs – which increased to 12.3 billion – as drought caused the country to depend on thermal power.
The company will not be paying an interim for the aforesaid period.