KPLC’s great Comeback: KSh30B Profit Sparks First Dividend in 7 Years!

Nairobi Kenya:
Kenya Power has announced a net profit of KSh30.08 billion for the financial year ending June 2024, marking a dramatic turnaround from a net loss of KSh3.19 billion recorded in the previous year. This significant recovery has enabled the utility firm to declare a dividend of KSh0.70 per share, the first such payout to shareholders in seven years.
The financial upturn has been attributed to several key factors. A stronger Kenyan shilling played a crucial role, reducing the company’s debt burden and contributing to an unrealized foreign exchange gain of KSh7.88 billion. Additionally, electricity sales surged by 21%, generating KSh231.12 billion in revenue. This increase was driven by the connection of 427,251 new customers and heightened consumption among existing users.
Following the profit announcement, Kenya Power’s stock experienced a sharp rise on the Nairobi Securities Exchange (NSE), closing at KSh5.24 per share. This marks a 49.7% increase, pushing the stock to its highest level in nearly six years. The surge reflects renewed investor confidence in the company’s financial health and strategic direction.
The company has also resumed repaying its debts after lifting a moratorium on KSh25.1 billion in loans owed to international development partners. Kenya Power has now begun making quarterly payments of KSh3 billion as part of its debt settlement plan.
Kenya Power’s Managing Director, Dr. Joseph Siror, reaffirmed the company’s commitment to maintaining financial sustainability and improving service delivery. “We are focused on enhancing operational excellence, customer satisfaction, and strengthening human capital to sustain this positive trajectory,” Siror stated.
The power distributor’s performance signals a robust recovery and underscores the effectiveness of its strategic initiatives. With continued financial discipline and operational efficiency, Kenya Power aims to maintain growth while ensuring reliable electricity distribution across the country.
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