Kenya Power has posted a 4.3 per cent increase in net profit for the half-year ended December 31, 2025, with earnings rising to Ksh.10.4 billion.
The results were anchored on higher electricity demand, improved distribution efficiency, and reduced finance costs.
Revenue from electricity sales increased by 6.9 per cent, rising from Ksh.107.42 billion to Ksh.114.87 billion, supported by stronger power demand and improved network performance.
During the six months, electricity sales grew by 10.5 per cent to 6,086 gigawatt-hours (GWh), reflecting sustained consumption across customer segments.
Distribution efficiency improved from 76.35 per cent to 77.97 per cent, driven by enhanced network performance and effective loss-reduction initiatives implemented by the utility.
The tax before profit rocketed to Ksh.14.83 billion, up from Ksh.14.06 billion a year earlier, an increase of Sh769 million (5.5 per cent).
“Our improved performance is attributed to higher electricity sales and reduced finance costs,” the company said in its financial statement.
Rising Power Purchase and Operating Costs
Power purchase expenses rose by Sh5.33 billion, in line with increased demand, as total energy purchases grew 8.3 per cent to 7,807 GWh.
Operating expenses increased to Sh25.2 billion from Sh23.7 billion, largely due to higher provisions for expected credit losses, increased depreciation from newly capitalised network projects, and staff-related costs.
The company’s balance sheet continued to strengthen, with total borrowings declining by six per cent to Ksh.84.2 billion by December 2025. Negative working capital narrowed to Ksh.12.5 billion, down from Ksh.19.1 billion in June 2025.
Cash generated from operations rose to Ksh.14.1 billion, while finance costs dropped by Ksh.492 million, supported by scheduled loan repayments and lower debt levels.
