Kenya Power has reported a record half-year profit before tax of KSh 14.83 billion for the six months to 31 December 2025, up 5.5% from KSh 14.06 billion a year earlier, lifted by stronger electricity demand and lower finance costs.
- •Revenue from electricity sales rose 6.9% to KSh 114.87 billion, driven by a 10.5% jump in units sold to 6,086 GWh.
- •Total energy purchases rose 8.3% to 7,807 GWh, leaving system losses of 1,721 GWh, or 22.03% of energy bought, down from 23.65% a year earlier but still far above global utility benchmarks near 5%.
- •Yet the headline strength masks two pressures that diluted shareholder returns: a less favourable tax outcome and rising customer arrears.
Power purchase costs increased KSh 5.33 billion, tracking higher volumes rather than tariff changes. However, operating profit rose only 2.2%, far slower than revenue, after operating expenses jumped KSh 1.43 billion to KSh 25.16 billion.
The main drag was higher provisions for expected credit losses as customer arrears continued to build, effectively showing that the utility is selling more power but struggling to collect the cash.
Taxation weighed on the bottom line, though the effect was far smaller than previously implied. Kenya Power booked a tax expense of KSh 4.43 billion in the period versus KSh 4.10 billion in the prior half, a difference of about KSh 336 million rather than a multi-billion swing. Even so, profit for the period rose only 4.3% to KSh 10.40 billion, slower than pre-tax growth.
Finance costs fell KSh 492 million after scheduled debt repayments. Total borrowings declined 6% to KSh 84.23 billion, trimming gearing to 0.71x equity versus about 0.75x in June. Still, leverage remains heavy for a capital-intensive utility.
KPLC's liquidity is tight. Current assets of KSh 105.26 billion against current liabilities of KSh 117.81 billion produce a current ratio of 0.89, meaning the company has only 89 cents of short-term assets for every shilling of near-term debt. Negative working capital narrowed from KSh 19.21 billion to KSh 12.54 billion, easing risk but keeping reliance on supplier financing.
Cash flows were constrained. Operating cash generation reached KSh 14.09 billion, while capital spending absorbed KSh 10.68 billion, leaving free cash flow of about KSh 3.41 billion before debt service. Financing outflows of KSh 4.95 billion produced a net cash drawdown; cash ended at KSh 6.18 billion, down from KSh 7.69 billion in June.
Earnings per share improved to KSh 5.33 from KSh 5.11. The board declared an interim dividend of KSh 0.30 per share, a 50% increase on last year’s KSh 0.20, but equal to only about 6% of half-year profit, signalling continued prioritisation of debt reduction over payouts.
Management said rising demand, better efficiency, and lower interest costs are stabilising performance. The bigger tests for KPLC ahead are curbing arrears, lifting distribution efficiency toward global norms, and navigating tariff policy without eroding cash generation.
