Kenya Power Profit Rises To Ksh24.99 Billion As Electricity Sales Grow.
By Shadrack Mutai | NAIROBI,
Kenya Power has reported a KSh24.99 billion profit after tax for the financial year ended June 30, 2026, supported by higher electricity sales, increased revenue and a significant reduction in finance costs.
The profit represents a 2.13 per cent increase from the KSh24.47 billion recorded in the previous financial year, according to the company’s audited financial results.
Kenya Power’s revenue from contracts with customers rose by KSh18.96 billion to KSh238.24 billion, driven mainly by increased electricity sales across all customer categories.
Electricity sales increased by 12 per cent from 11,403 gigawatt-hours (GWh) to 12,777 GWh during the year. The growth was supported by the addition of 411,710 new customers and increased consumption, alongside enhanced revenue protection measures.
The company also improved its distribution and transmission efficiency from 78.79 per cent to 81.42 per cent, enabling it to convert increased electricity demand into higher sales.
Kenya Power’s gross margin strengthened to 36 per cent from 34 per cent in the previous year, with gross profit rising by KSh10.97 billion to KSh85.59 billion. Cost of sales increased by 5.52 per cent to KSh152.65 billion, below the 8.64 per cent growth in revenue.
Finance costs declined by KSh1.64 billion to KSh3.08 billion, mainly due to lower interest expenses following a reduction in outstanding loan balances.
Profit before tax increased by KSh639 million to KSh36.01 billion, while earnings per share rose from KSh12.54 to KSh12.81.
Despite the improved profitability, Kenya Power’s operating expenses increased by KSh11.33 billion to KSh53.75 billion. The company attributed the increase partly to higher expected credit losses, staff costs, depreciation and other operating expenses associated with operating, maintaining and expanding its electricity network.
The company’s financial position also strengthened, with total assets increasing by KSh32.45 billion to KSh421.49 billion. Kenya Power invested KSh28 billion in capital expenditure during the year towards expansion, reinforcement and modernisation of its electricity network.
The utility further recorded a turnaround in its working capital position, moving from a negative KSh19.21 billion in June 2025 to a positive KSh1.90 billion in June 2026. The current ratio consequently improved from 0.84 to 1.02.
Total borrowings declined to KSh79.82 billion, while borrowings due within one year fell by 39.21 per cent to KSh10.64 billion.
Shareholders’ equity increased by 20.55 per cent to KSh131.80 billion, while the gearing ratio improved from 73 per cent to 55 per cent.
The company’s board has recommended a final dividend of KSh1.20 per ordinary share, subject to shareholder approval and applicable withholding tax. This follows an interim dividend of KSh0.30 per share paid during the year, bringing the proposed total dividend for the financial year to KSh1.50 per share.
Shareholders on the register at the close of business on November 27, 2026, will qualify for the final dividend if approved, with payment expected before December 31, 2026.
Looking ahead, Kenya Power said it will focus on improving customer service, expanding digital capabilities, strengthening revenue protection, pursuing new revenue streams and supporting increased generation and transmission capacity.
The company also plans to invest in grid automation, smart metering, network infrastructure and workforce renewal as it seeks to meet rising electricity demand.
Kenya Power said the improved financial position will enable it to continue investing in network expansion and customer access while pursuing greater financial sustainability and shareholder value.
