Kenya Power registered a Ksh.3.8 billion net profit in six months to December 31, 2021, on the back of ongoing reforms that were initiated by President Uhuru Kenyatta.
This is compared to Ksh.138 million the power utility posted same period in 2020.
Pretax profit for the period under review was Ksh.5.6 billion compared to Ksh.332 million that was recorded same period in 2020.
“This was driven by an increase in customer connectivity, as well as improved supply quality and reliability due to enhanced preventive maintenance works, network refurbishment and accelerated faulty meter replacements,” said Kenya Power on Friday.
Overdue customer debt fell for the first time in five years recording a Ksh.900 million reduction in the arrears from enhanced field presence.
This even as the power distributor’s net operating costs dropped by 5.5 percent to Ksh.19 billion from Ksh.20.1 billion as the company enhanced its cost management and resource optimization initiatives.
The positive results come at a time when the company, which enjoys a monopoly of power distribution in the country has come under criticism over public funds mismanagement.
Finance costs rose to Ksh.6.8 billion from Ksh.6.6 billion from unrealised Foreign exchange losses from the marginal depreciation of the Kenyan Shilling.
The utility company has cut its trade and other payables by over Ksh.4 billion while clearing overdrafts estimated at Ksh.3.6 billion.
On January 7, Kenya Power effected the 15 percent reduction of power tariff in the country.
The changes are expected run for a 12-month period starting January 2022 to December 2022.
“The tariff reduction is a fulfillment of the commitment made by President Kenyatta to the nation on Jamhuri day 2021 that the first tranche of 15 percent reduction in the cost of power will be reflected in bills covering the end year of 2021,” said the Ministry of Energy in a statement.
This came as a major relief to the majority of Kenyan households who have been struggling on the back of the high cost of energy amidst economic headwinds caused by the coronavirus pandemic.
The Ministry of Energy said it would effect the remaining 15 percent reduction in powering tariff before the end of the first quarter of 2022.
Kenya Power is, however, hopeful to maintain its positive financial results, as it plans to increase the coverage of the Advanced Metering Infrastructure (AMI) project, which presently covers 6,718 or 80 percent of large power customers to full coverage by the end of 2022.