Kenya Power has reported a 4.3 per cent increase in net profit for the half-year ended December 31, 2025, with earnings rising to Sh10.4 billion, driven by increased electricity demand, improved distribution efficiency, and reduced finance costs.
The listed electricity distributor announced the results on Tuesday during an investor briefing in Nairobi, noting that revenue growth was supported by stronger power consumption across the country.
Revenue and Electricity Sales Growth
According to the financial statement, revenue from electricity sales rose by 6.9 per cent to Sh114.9 billion, reflecting sustained demand and improved network performance. During the six months, electricity sales increased by 10.5 per cent to 6,086 gigawatt-hours (GWh).
Distribution efficiency improved to 78 per cent, up from 76.4 per cent in the previous period, following network upgrades and loss-reduction initiatives implemented by the utility.
Gross earnings for the period grew 5.5 per cent to Sh14.83 billion.
Rising Power Purchase Costs
Despite the improved performance, Kenya Power reported higher energy costs. Power purchase expenses increased by Sh5.33 billion, in line with rising demand, as total energy purchases grew 8.3 per cent to 7,807 GWh.
Operating expenses also rose to Sh25.2 billion, up from Sh23.7 billion, mainly due to increased provisions for expected credit losses, higher depreciation from newly capitalised network projects, and staff-related costs.
Improved Balance Sheet and Cash Flow
The company’s balance sheet showed continued strengthening, with total borrowings declining by six per cent to Sh84.2 billion by December 2025. Negative working capital narrowed to Sh12.5 billion, down from Sh19.1 billion recorded in June 2025.
Cash generated from operations increased to Sh14.1 billion, while finance costs fell by Sh492 million, supported by scheduled loan repayments and lower debt levels.
Interim Dividend Declared
Following the half-year results, the board of directors declared an interim dividend of Sh0.30 per share, payable toward the end of next month to shareholders registered as of February 23, 2026.
Management Outlook
Speaking during the investor briefing, Kenya Power Managing Director and CEO Dr Joseph Siror said the results demonstrate continued progress in strengthening the company’s financial position.
“The continued growth in electricity sales, supported by rising demand, improving distribution efficiency, and lower finance costs, lays a solid foundation for improved profitability,” Siror said.
Looking ahead, Kenya Power plans to focus on securing a stable power supply, reducing system losses, modernizing the grid, and enhancing the customer experience, as part of efforts to support the country’s long-term economic growth.
