There seems to be no financial light at Kenya Power and Lighting Company (KPLC) after profits for the financial year ended June 30, 2019, plunged by a whopping 91 percent.
Kenya Power had postponed the announcing of its financial results pending the appointment of the Auditor-General by President Uhuru Kenyatta.
For the financial year under review, Kenya Power reported a net profit of 262 million shillings compared to 3.3 billion shillings the previous year despite the fact that it is the only company in Kenya that has no competitor and sets its own price.
The company attributed the loss to increased non-fuel power purchase costs which rose by 18.1 billion shillings to 70.9 billion shillings, from 52.8 billion shillings in a similar period in 2018.
In addition to the commissioning of two power plants with a combined generation capacity of 360MW, according to the company increased the costs during the financial year.
“In addition, finance costs rose by 3.2 billion shillings due to increased levels of short-term borrowing and foreign exchange losses,” the firm said in the financial results signed by company secretary Imelda Bore.
According to the results, its revenue from electricity sales grew by 16.9 billion shillings from 95.4 billion shillings to 112.4 billion shillings attributed to a tariff review at the beginning of the year prior to the subsequent tariff harmonization that lowered rates for Small commercial customers and broadened life-line tariff for domestic customers.
“The growth in revenue was also supported by a 3.4 percent increase in unit sales from 7,905 GWh to 8,174 GWh owing to an expanding customer base.”
The directors did not recommend the payment of a dividend to shareholders.
“Kenya Power will continue to implement the ongoing business turnaround strategy to improve operational efficiency and ensure financial sustainability,” the statement further said.