Kenya Power profits hit a high of Ksh3.82 billion for the six months ended December 31, 2021, as compared to Ksh138 million recorded in the previous year.
There was a 2.33 percent improvement in system efficiency which stood at 77.13 percent for the period under review, which led to a 12.9 percent increase in electricity revenue which grew to Ksh69.45 billion.
Operating costs decreased from Ksh20.1 billion to Ksh19 billion as a result of enhanced cost management and resource optimization initiatives that the Company is implementing as part of its turnaround strategy.
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Non-fuel power purchase costs increased from Ksh38.123 million incurred in the previous period to Ksh40,487 million mainly due to additional unit purchases to support increased demand.
Similarly, fuel costs increased from Ksh4.6 billion to Ksh10. billion mainly due to a 314 GWh increase in units purchased from thermal plants to 709 GWh due to low hydrology resulting from delayed rains, and an upsurge in fuel prices.
Finance costs for Kenya Power increased to Ksh6.8 billion from Ksh6.6 billion the previous period mainly due to a rise in unrealised foreign exchange loss resulting from the depreciation of the Kenya shilling against major currencies.
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Overdue customer debt, for the first time in five years, recorded a reduction of Ksh900 million as a result of enhanced field presence, continued government intervention with state agencies, and increased customer engagements. In the second half of the year, the business will primarily focus on domestic and SME customers who currently account for 67 percent of the Company’s outstanding debt.
Kenya Power reduced trade and other payables by over Ksh4 billion. In addition, the business cleared overdrafts amounting toKsh3.4 billion.
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The Company closed the first half of the financial year with a cash position of Ksh8.35 billion which includes ring-fenced funds projects, receipts from the Government for the Lost Mile, and street lighting programmes, as well as funds for scheduled loan repayments.
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