Kenya Power has posted a Sh24.99 billion profit after tax for the financial year ended June 30, 2026, as higher electricity sales and lower financing costs helped the utility maintain its profitability despite a significant increase in operating expenses.
The profit represents a 2.13 per cent increase from Sh24.47 billion recorded in the previous financial year.
Electricity revenue increased 8.6 per cent to Sh238.24 billion, supported by growing electricity consumption across customer categories. Unit sales rose 12 per cent from 11,403 gigawatt-hours to 12,777 GWh during the year.
The utility also connected 411,710 new customers, taking its customer base to approximately 10.4 million.
Kenya Power recorded further gains from improvements in its transmission and distribution network. System efficiency increased from 78.79 per cent to 81.42 per cent, allowing the company to convert a greater share of electricity supplied through its network into billable sales.
Managing Director and CEO Joseph Siror attributed the performance to measures aimed at strengthening operational efficiency, financial sustainability, customer service and revenue protection.
The company's financing burden declined substantially during the year. Finance costs fell 34.68 per cent from Sh4.72 billion to Sh3.08 billion, largely due to lower interest expenses as Kenya Power reduced its outstanding loan balances.
Total borrowings declined to Sh79.8 billion from approximately Sh87.6 billion a year earlier, while debt falling due within 12 months dropped 39.2 per cent to Sh10.6 billion.
Kenya Power also recorded a significant improvement in liquidity. Its net working capital moved from a negative Sh19.21 billion in June 2025 to a positive Sh1.90 billion at the end of June 2026.
Shareholders' equity increased 20.6 per cent to Sh131.8 billion, while the company's debt-to-equity ratio improved to 0.60 from 0.80.
The improved revenue and financing position helped offset higher operating expenses during the year. Net operating expenses increased by Sh11.3 billion to Sh53.8 billion, partly due to higher expected credit losses, staff costs and depreciation.
Cost of sales increased 5.5 per cent to Sh152.7 billion, slower than the growth in revenue. This helped lift gross profit to Sh85.6 billion from Sh74.6 billion, while gross margin improved to 36 per cent from 34 per cent.
Kenya Power continued investing in its electricity infrastructure, spending Sh28 billion on capital projects during the financial year. The expenditure supported expansion, reinforcement and modernisation of the electricity network.
Total assets consequently increased by Sh32.45 billion to Sh421.49 billion.
Shareholders are also in line for a higher dividend following the results. The board has recommended a final dividend of Sh1.20 per ordinary share, which would bring the total dividend for the financial year to Sh1.50 per share after an interim dividend of Sh0.30.
The Sh1.50 full-year payout represents a 50 per cent increase from the Sh1.00 per share paid for the previous financial year. The proposed final dividend remains subject to shareholder approval.
Kenya Power says its priorities will now include grid automation, smart metering, revenue protection, digitalisation of customer services, infrastructure investment and development of additional revenue streams as electricity demand continues to grow.
