Kenya Power pays shareholders first dividend in 7 years

Kenya Power shareholders will get a dividend of Ksh0.70 per share after a 7-year payout drought following a shock net profit announced by the company.

The Nairobi Securities Exchange (NSE) listed utility has recorded a record profit after tax of Ksh30.08 billion for the financial year ended June 2024.

It is the largest ever net profit made by the utility, which is Kenya’s sole power distributor.

The announcement of the profit sent investors into a frenzy, which saw Kenya Power’s share price jump by 42.86% to Ksh5 by the close of trading on Tuesday as investors seeks to cash in on the dividend.

The government of Kenya through the National Treasury owns 50.1% shareholding in the company while the rest is held as a free float among private shareholders.

The historic profit saw the company bounce back from a net loss of Ksh3.19 billion in the year ended June 2023, driven by a strong shilling and an increase in electricity sales.

During the year, Kenya Power’s electricity sales increased by 21% to Ksh231.12 billion from Ksh190.98 billion recorded during the previous trading year.

The utility attributed the increase due to increased demand from customers as well as connection of 447,251 new customers connected to the grid during the year.

Kenya Power’s finance costs decreased by Ksh24.84 billion, primarily driven by unrealised foreign exchange gain of Ksh7.88 billion, compared to a loss Ksh16.87 billion in the previousperiod resulting from loan revaluations.

“This gain was due to the appreciation of the Kenyan shilling against the US Dollar and Euro, both of which represent approximately 90% of the Company’s loan portfolio,” said the firm in a statement.

The utility’s operating expenses rose to Ksh46.28 billion from Ksh37.28 billion in theprevious year, which was attributed to a 92% rise in wheeling charges for the expanding transmission network and the recruitment of additional technical staff to support business operations.

To sustain the profitability, in the medium term, Kenya Power has identified key priority areasthat will guide its business operations while consistently delivering value to its shareholders.

The strategic focus areas include financial sustainability, operational excellence, customercentricity and strengthening of human capital.

“Our focus will be implementing high-impact projects and initiatives detailed in our Strategic Plan, ensuring that they are fully resourced as we cultivate a culture of operational excellence within our workforce,” said Kenya Power Managing Director Dr Joseph Siror.

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