KPLC’s profits drop by 63%

The Kenya Power head office in Nairobi./file

Nairobi, KENYA: Kenya Power has announced a63 percent decrease in profit for the year ended June 30, 2018, due to increased operating costs.

The company indicated that the profit went down by 1.91 billion shillings from 5.28 billion in the previous financial year.

“This is attributable to an increase in the unit purchase from the geothermal source in the year by 602 GWh or 13.5 per cent from 4,451 GWh the previous year to 5,053 GWh,” Said Kenya power in a statement.

In the previous financial year, the company pre-tax profits was at 3.08 shillings from 7.6 billion shillings

The firm has made the announcement barely a month after it issued a profit warning, citing the delayed review of retail electricity tariffs,  poor hydrological condition, depressed economic environment, and prolonged election cycle.

Power purchase cost, excluding fuel and foreign exchange cost, increased by 2.59 billion to sh. 52.79 billion.

This comes at a time when its supplier, Kenya Electricity Generating Company (KenGen) has just fined it sh. 1 Billion for flouting the 40-day window credit terms.

In the 2016 financial year, the firm reported sh.7.5 billion in profit.