Kenya Power and Lighting Company (KPLC) has recorded a loss of KES 1,589 million in the second half of 2022.
Data from KPLC shows that this represents a 71.9% net earnings decrease from the KES 5,659 million that was recorded during the same period last year.
This drop is attributable to increased foreign exchange losses and the implementation of the 15% reduction of end users’ electricity tariff as recommended by the Government in January 2022.
Kenya Power and Lighting Company
The basic electricity revenue for the six months period decreased by KES 6,696 million.
On a positive note, KPLC recorded a 4.4 per cent growth in electricity sales to 4,764Wh for the period compared to the same period last year. The growth in sales was driven mainly by growing energy demand, occasionally by increased economic activities and an expanded customer base.
Operating costs increased from KES 19,036 million to KES 21,724 million due to increased foreign exchange losses arising from the revaluation of outstanding payments to power generators denominated in foreign currencies as a result of the depreciation of the Kenya Shilling.
Non-fuel power purchase costs increased from KES 49,487 million to KES 43,881 million owing to additional electricity purchases made during the period to support growth in demand. Similarly, fuel costs increased from KES 10,871 million in the previous period to KES 15,081 million, attributable to a significant increase in fuel prices during the period under review.
Finance costs increased to KES 7,392 million from KES 6,777 million, resulting from a rise in unrealised foreign exchange loss arising from the revaluation of foreign-denominated loans as a result of the depreciation of the Shilling against major currencies.
The company projects to improve its business performance in the second half of the financial year by retaining the unwavering focus on increasing electricity sales, enhancing system efficiency and prudently managing its resources. To support these efforts, we are also taking measures to enhance employee productivity and transform the customer experience.
Kenya Power and Lighting Company
Read Also: KPLC Net Earnings rise 16.1% to KSh 1.5 Billion
