Kenya Power has recorded a Ksh.43.6 billion, Ksh.30.5 billion after-tax profit for the financial year 2023/24.

The power supplier said on Tuesday that the profit is largely due to the strengthening of the Kenyan shilling, which now trades at Ksh.129 against the US dollar. 

Kenya Power added that during the year ended June, the electricity sales increased by 21% to Ksh.231 billion from Ksh.190 billion recorded during the previous trading year. 

"This growth is attributable to improved sales primarily from the 447,251 new customers connected to the grid during the year, as well as increased economic activities, particularly in the manufacturing sector."

The institution further noted that a significant reduction in finance cost of Ksh.24 billion also aided in the improvement of the profit margins.

Further, their commercial and industrial, and domestic customer categories recorded the highest growth in sales at 5.1% and 5.5% respectively 

Kenya Power also recorded a high power purchase as costs increased from Ksh.143 billion the previous year to Ksh.150 billion which they attribute to additional units purchased to support rising demand, as well as the high exchange rate that prevailed earlier in the financial year.

"While the Company's revenues are denominated entirely in Kenya shillings, power purchases are predominantly paid in foreign currencies. As a result, the strengthening of the Shilling in the second half of the year led to an increase in cost of sales that was lower than the growth in revenue, thus contributing to the higher gross margin," said Kenya Power's Managing Director and Joseph Siror. 

Kenya Power plans to sustain its profitability by bolstering priority areas that will guide its business operations while consistently delivering value to its shareholders.

These areas include financial sustainability, operational excellence, customer centricity and strengthening of human capital. 

"Our focus will be implementing high-impact projects and initiatives detailed in our Strategic Plan, ensuring that they are fully resourced as we cultivate a culture of operational excellence within our workforce," said Siror.