Kenya Power has posted a 91.98 percent decline in net profit to Sh262 million from Sh3.27 billion for the financial year ended June 2019 on high cost of buying electricity.
Despite revenue rising by 1.34 percent to Sh133.1 billion on more electricity sales, increased power purchase and higher finance costs depressed its bottom-line.
“This was mainly attributable to increase in non-fuel power purchase costs by Sh18 billion from Sh52.7 billion to Sh70.8 billion following the commissioning of two power plants with a combined generation capacity of 360MW during the period,” said Kenya Power.
“In addition finance costs rose by Sh3.2 billion due to increased levels of short term borrowings and foreign exchange losses.”
Power purchase costs, including fuel and foreign exchange costs, increased by Sh6 billion to Sh90.1 billion.
Finance costs rose by Sh3.2 billion or 46.35 percent to Sh10.3 billion partly due to increased use of short term loans.
The electricity distributor announced the results Wednesday which saw its full-year performance 2018 restated.
The results follow a string of profit warnings last year by the company.
Source: Nairobi News