Kenya Power Reports 2024 Financial Results
KPLC’s revenue from customer contracts increased to KSh 231.12 billion, up from KSh 193.98 billion in 2023, representing a 19% rise.
Kenya Power and Lighting Company Managing Director and CEO Joseph Siror. Photo/The Kenya Times.
By Robert Mutasi
Kenya Power and Lighting Company PLC (KPLC) has reported a significant profit before tax of KSh 43.67 billion for the year ended June 30, 2024.
This marks a notable improvement from the KSh 4.83 billion reported in the previous year. The company attributes this success to strong revenue growth, cost management, and the positive impact of foreign exchange gains, as the Kenyan Shilling strengthened against global currencies.
Revenue Growth and Performance
KPLC’s revenue from customer contracts increased to KSh 231.12 billion, up from KSh 193.98 billion in 2023, representing a 19% rise.
This boost in revenue was driven primarily by increased electricity sales, which grew by 21.5%. Electricity sales generated KSh 190.98 billion in 2024, compared to KSh 174.12 billion in 2023. Additionally, other income, including financial gains from exchange rate fluctuations, contributed KSh 7.25 billion, up from KSh 6.1 billion in 2023.
The company’s cost of sales rose marginally from KSh 143.57 billion to KSh 150.06 billion, reflecting a 4.5% increase. However, KPLC’s gross margin surged to KSh 80.52 billion, up from KSh 47.39 billion the previous year, signifying improved operational efficiency.
Operating Profit and Key Drivers
The operating profit for the year stood at KSh 41.49 billion, a dramatic increase from KSh 19.21 billion in 2023. This impressive figure was driven by higher electricity sales, lower operational expenses, and a favorable exchange rate environment. Power purchases rose slightly from KSh 143.58 billion in 2023 to KSh 150.61 billion in 2024. Despite this, the company’s gross profit margin expanded due to its ability to maintain cost discipline.
Furthermore, KPLC benefited from finance income of KSh 1.49 billion, offsetting some of the finance costs, which stood at KSh 4.63 billion. After tax, KPLC recorded a profit of KSh 30.89 billion, a sharp reversal from the loss of KSh 9.19 billion in the previous year.
Capital Investments and Future Outlook
The company’s capital expenditure increased significantly in 2024, reaching KSh 42.68 billion, up from KSh 28.8 billion in 2023. These funds were directed towards upgrading transmission and distribution networks to ensure reliability and support growing demand. KPLC’s leadership emphasized that the investments are part of a broader strategy to modernize infrastructure and improve service delivery.
Looking ahead, KPLC plans to continue expanding its infrastructure while focusing on operational efficiency and financial prudence. The company remains committed to addressing challenges related to electricity supply, including transmission losses and system reliability.
Shareholder Value
Kenya Power’s shareholders saw a marked improvement in equity, which rose to KSh 38.31 billion from KSh 35.61 billion in 2023. The company’s basic and diluted earnings per share increased significantly to KSh 15.41 from a loss of KSh 1.64 per share in 2023. This growth is a testament to KPLC’s improved profitability and financial performance.
The company acknowledged the support of its employees, shareholders, and customers in achieving these results and expressed optimism for continued success in the upcoming year.
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