Kenya Power, the state-owned listed electricity distributor, recorded a net loss of KSh 3.2 billion for the full-year period ended 30th June 2023 compared to a net profit of KSh 3.3 billion at the end of the 2022 financial year.
- This is despite posting an increase in operating profit from KSh 17.1 billion in 2022 to KSh 19.2 billion at the end of the 2023 financial year.
“The positive performance…was eroded by exceptionally high finance costs…mainly driven by the depreciation of the Kenya shilling against major international currencies,” said Joy Brenda Masinde, Chairperson of the utility company’s board.
- In the period, the Kenya Shilling depreciated by 19% from KSh 118 per US$ in June 2022 to KSh 140 per US$ in June 2023.
- Provisions for electricity debt and other receivables rose by KSh3.2 billion primarily due to an increase in unsettled customer debts during the year under review.
“The unrealized foreign exchange losses on power purchase increased from KSh 1.12 billion at the end of the 2022 financial year to KSh 5.32 billion as a result of the depreciation of the Kenya Shilling against the US$ and the Euro, the currencies in which most of the power purchase agreements are denominated,” said Dr Eng. Joseph Siror, Managing Director & CEO, Kenya Power and Lighting Company Limited.
- The utility company has notified shareholders that its Annual General Meeting(AGM) will be held virtually on Friday, 8th December 2023 at 11.00 am.
- Shareholders are expected to elect four directors to fill vacancies in the firm’s Board of Directors, to reflect its new structure as the Government cedes control.
During the Extraordinary General Meeting held on 10th November 2023, shareholders approved the proposal to amend the Company’s Memorandum and Articles of Association, paving the way for the restructuring of the Board to reflect the Company’s shareholding structure.
In this year’s Annual General Meeting(AGM), private shareholders will elect 4 directors to the Board while the Government will appoint 5 directors.
- During the meeting, shareholders are expected to approve the revised Company’s Articles of Association which have been reviewed to align with the Companies Act, 2015 and best corporate governance practices
ALSO READ: Kenya Power to Dilute State Control in New Directors Board
