Kenya Power Posts Ksh 10.4bn Profit, Raises Interim Dividend by 50%

Kenya Power and Lighting Company (KPLC) has posted a strong financial turnaround, reporting a profit after tax of Ksh 10.4 billion for the six months ended December 31, 2025, and announcing a 50 per cent increase in its interim dividend to Ksh 0.30 per share, as higher electricity demand and lower finance costs boosted earnings.

The utility said profit before tax rose to Ksh 14.83 billion, up from Ksh 14.06 billion in the same period a year earlier, reflecting a 5.5 per cent increase. The results were released on February 2 and mark one of the company’s strongest half-year performances in recent years.

Revenue Growth Driven by Higher Power Demand

Kenya Power recorded electricity sales revenue of Ksh 114.9 billion, representing a 6.9% increase, supported by rising consumption and improved distribution efficiency across the national grid.

Total electricity unit sales climbed 10.5 per cent to 8,086 GWh, while distribution efficiency improved from 76.35 per cent to 77.97 per cent, indicating progress in loss reduction and network performance.

According to the company, stronger demand is being seen across residential, commercial, and industrial customers, underscoring Kenya’s expanding electricity consumption, even as power bills remain a concern for households and businesses.

The surge in demand also raised costs. Power purchase expenses increased by Ksh 5.33 billion, as total energy purchases rose 8.3 per cent to 7,807 GWh during the period.

Operating expenses climbed by Ksh 1.43 billion to Ksh 25.16 billion, driven by higher provisions for expected credit losses, increased depreciation from newly capitalised network projects, and staff-related costs.

However, Kenya Power benefited from significantly lower financing costs. Finance expenses fell by Ksh 492 million, or 25 per cent, after the company reduced its debt burden and benefited from relative exchange rate stability.

Total borrowings declined by 6 per cent to Ksh 84.23 billion, strengthening the balance sheet and easing pressure on cash flows.

The utility also reported an improvement in its working capital position. Negative working capital narrowed from Ksh 19.21 billion in June 2025 to Ksh 12.54 billion by the end of December, reflecting tighter cash flow management and scheduled loan repayments.

Market analysts say the improved liquidity and debt reduction enhance Kenya Power’s financial resilience at a time when utilities face rising infrastructure demands and public scrutiny over tariffs and service reliability.

Higher Dividend for Shareholders

On the back of the improved results, the board approved an interim dividend of Ksh 0.30 per share, payable on or about March 27, 2026, to shareholders on the register as of February 23, 2026, subject to withholding tax.

Kenya Power said the payout aligns with its dividend policy and reflects growing confidence in its earnings outlook.

Looking ahead, the utility said it will prioritise securing power supply, accelerating loss reduction programmes, modernising the grid, and expanding digitisation initiatives to improve service delivery and customer experience as electricity demand continues to rise.