Kenya Power issues profit warning - Daily Nation

Kenya Power issues profit warning

Monday October 22 2018

Kenya Power

A Kenya Power worker. FILE PHOTO | NATION MEDIA GROUP 

By VALENTINE OBARA
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Kenya Power’s net earnings for the year ended in June is expected to fall by over 25 percent as compared to the previous year.

A profit warning issued by the company shows that the massive drop was caused by challenges in the country’s economic environment.

In the year ended June 2017, the power distributer had revenues of Sh120.7 billion and a profit of Sh7.27 billion after tax.

In February, the company announced that its net profit for the six months ended December 2017 had dropped by 30.3 percent to Sh2.93 billion.

“Revenue growth in the year was constrained by the depressed economic environment, poor hydrological conditions in 2017 and the protracted electioneering period. This slow business environment led to a significant decline in the company’s financial performance,” said the managing director, Mr Jared Othieno, in a statement.