Kenya Power has posted a modest rise in profitability for the year ended June 30, 2026, as stronger electricity sales, improved network efficiency and a sharp reduction in finance costs helped offset rising operating expenses.
Net profit increased 2.1 per cent to Sh25 billion, from Sh24.5 billion a year earlier.
Earnings per share rose to Sh12.81 from Sh12.54.
The result marks a further improvement from the 18.7 per cent profit decline recorded in the 2024/25 financial year.
The board has recommended a final dividend of Sh1.20 per share, on top of the Sh0.30 interim dividend already paid, taking the full-year payout to Sh1.50 per share.
This represents a 50 per cent increase from the Sh1.00 paid for the previous financial year, when shareholders received an interim Sh0.20 and final Sh0.80.
The improved shareholder return comes as the utility’s balance sheet continues to strengthen.
Total borrowings fell to Sh79.8 billion from about Sh87.6 billion a year earlier, while debt due within 12 months dropped 39.2 per cent to Sh10.6 billion.
The reduction helped cut finance costs by Sh1.6 billion to Sh3.1 billion. The lower financing burden is significant for Kenya Power, whose previous earnings had been affected by higher finance costs and foreign-exchange movements.
The company’s liquidity position also improved markedly. Net working capital turned positive at Sh1.90 billion from a negative Sh19.2 billion, while the current ratio rose to 1.02 from 0.84.
At the same time, shareholders’ equity increased 20.6 per cent to Sh131.8 billion, pushing the debt-to-equity ratio down to 0.60 from 0.80.
Revenue growth was driven by higher electricity sales.
Electricity revenue rose 8.6 per cent to Sh238.2 billion, with unit sales increasing 12 per cent to 12,777 gigawatt-hours.
The utility added 411,710 customers during the year, taking the customer base to about 10.4 million. Operational efficiency was another key driver.
Transmission and distribution efficiency improved to 81.4 per cent from 78.8 per cent.
The improvement means a larger proportion of electricity purchased and transmitted through the network was converted into billable sales.
The firm’s MD Joseph Siro linked improved distribution efficiency to the company’s loss-reduction programme.
“This performance reflects continued momentum in strengthening our balance sheet and building resilience,” Siror told investors during the early Friday briefing.
The gains at the gross-profit level were even more pronounced.
Cost of sales rose 5.5 per cent to Sh152.7 billion, slower than revenue growth, lifting gross profit to Sh85.6 billion and gross margin to 36 per cent from 34 per cent.
However, rising operating costs remained a drag on earnings.
Net operating expenses increased by Sh11.3 billion to Sh53.8 billion, partly because of higher expected credit losses, staff costs and depreciation.
Kenya Power also invested Sh28 billion in capital expenditure during the year, supporting network expansion, reinforcement and modernisation, with total assets rising to Sh421.5 billion.
