Rising sales pump up Kenya Power profit
Kenya Power managing director Ben Chumo (centre) accompanied by Uasin Gishu Deputy governor Daniel Chemno with Veronica Mwihaki, 104 years old and her daughter Hannah Wanjiku (left), 70 years, after she lit her house at Kasarani estate in Eldoret town on February 14, 2015. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
- Revenue from electricity sales increased to Sh37.6 billion from Sh26.9 billion recorded in 2013. During the period under review, the company spent Sh10.5 billion in expansion and upgrade of the electricity grid.
Kenya Power realised a 38.5 per cent growth in profit after tax for the six months to December 2014.
The utility firm attributed the jump in net earnings to increased power sales and an upward review of the tariff during the trading period.
Revenue from electricity sales increased to Sh37.6 billion from Sh26.9 billion recorded in 2013. During the period under review, the company spent Sh10.5 billion in expansion and upgrade of the electricity grid.
Increased uptake of loans from both bilateral and commercial lenders saw the utility’s finance costs rise to Sh2.3 billion from Sh1.9 billion incurred during the previous period.
“To secure revenue, we are planning to introduce smart metering systems to ensure billing accuracy for large power customers as well as reduce overhead costs.
The company will enhance construction of alternative power lines for uninterrupted supply to improve quality and reliability of electricity,” said Mr Ben Chumo, Kenya Power managing director in a statement Wednesday.
