Kenya Power Posts KSh 24.47 Billion Profit After Tax

“From the Grid to the Ledger: How Kenya Power Delivered KSh 24B in Profit — But With Warnings”

When the utility giant Kenya Power and Lighting Company (KPLC) announced a profit after tax of KSh 24.47 billion for the financial year ended June 30, 2025, many cheered this as a return to form. Tuko.co.ke – Kenya news. Yet behind the figures lies a story of tight margins, operational discipline—and the delicate balance of rewarding shareholders without overextending utility operations.

🧮 The Numbers That Tell the Tale

KPLC’s top-line earnings reflect several critical shifts:

• Revenue: KSh 219.29 billion — somewhat down from prior years, partly due to currency effects and tariff adjustments. Tuko.co.ke – Kenya news.

• Profit Before Tax: KSh 35.38 billion Tuko.co.ke – Kenya news.+1

• Operating Expense Cuts: The company trimmed about KSh 3.86 billion in operating costs, notably by reducing expected credit losses and managing its cost base more tightly. Tuko.co.ke – Kenya news.+1

• Decline Compared to Last Year: Profit after tax dropped ~18.7% from ~KSh 30.08 billion the previous year. Tuko.co.ke – Kenya news.+1

In short: revenue pressure, foreign exchange headwinds, and weaker tariff yield cut into margins — but cost discipline and sales volume held the line.

💰 Dividend Promise: Sharing the Gains

To recognize shareholders, KPLC’s Board has proposed:

• Final Dividend: KSh 0.80 per ordinary share

• Interim Already Paid: KSh 0.20

• Total Dividend: KSh 1.00 per share Tuko.co.ke – Kenya news.+1

If approved, shareholders on record as of December 2, 2025 will receive the payout around January 30, 2026. The Star+1 This marks a slight increase from last year’s total of KSh 0.70 per share. The Star+1

🏦 What Drove This Performance?

1. Higher Electricity Sales Volume
   KPLC sold an additional ~887 GWh, taking total sales to ~11,403 GWh — an 8% increase — thanks to stronger demand in domestic and industrial sectors. Tuko.co.ke – Kenya news.

2. Lower Costs of Sales
   The cost of sales dropped ~4% (from ~KSh 150.6B to ~KSh 144.6B), aided by more favorable foreign exchange adjustments on power purchase agreements. Tuko.co.ke – Kenya news.+1

3. Tighter Credit Loss Provisions
   Better collections and lower expected credit losses under the IFRS 9 model helped ease expense pressure. Tuko.co.ke – Kenya news.

4. Tariff and Currency Challenges
   The company acknowledged that tariff yields and foreign currency recoveries were weaker, squeezing revenue potential. Tuko.co.ke – Kenya news.

👥 Reactions & Risks Looming

• Investor Sentiment: The share price tumbled ~5.9% at NSE opening after the results were announced, reflecting investor concern over declining profits. Business Today

• Profit Decline vs. Dividend Commitment: While profits dipped, the company continues to distribute a generous dividend. Could this strain future investment or maintenance budgets?

• Sustainability Question: Can KPLC maintain this cost discipline, manage FX risk, and increase efficiencies — especially as the country electrifies more and adds strain to the grid?

🔮 What to Watch Going Forward

• Whether the shareholders approve the proposed final dividend during the annual meeting

• How KPLC navigates tariff reviews and regulatory changes

• FX volatility and its impact on power import costs and PPA payments

• Capital expenditure plans: will dividends limit room for grid expansion and upgrades?