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Kenya Power and Lighting Company (KPLC) has reported a sharp 18.7 per cent decline in its net profit for the financial year ended June 2025, falling to KSh 24.47 billion from KSh 30.08 billion recorded in 2024. The decline was mainly linked to the absence of one-off foreign exchange gains that boosted earnings the previous year, as well as reduced tariff adjustments.
The company’s profit before tax dropped to KSh 35.38 billion from KSh 43.67 billion, marking a 19 per cent fall. Revenue also declined by 5.1 per cent to KSh 219.29 billion from KSh 231.12 billion, representing the first year-on-year drop since 2013. Kenya Power attributed this to lower foreign exchange recoveries and moderated tariff adjustments, which offset gains from higher electricity sales.
Despite the drop, the utility company maintained that its performance remains strong, as the 2025 profit level is still three times higher than any financial year before 2024. This, according to the company, highlights the success of its ongoing cost-efficiency programme, liquidity improvement, and balance-sheet restructuring.
Over the past two decades, Kenya Power’s revenue has increased sevenfold, from under KSh 30 billion in the early 2000s to the current KSh 219 billion. Profit after tax has also grown from under KSh 2 billion in the early 2000s to over KSh 24 billion in 2025. During the same period, the company’s total assets have expanded from about KSh 5 billion to KSh 389 billion, reflecting continuous investment in infrastructure and network expansion.
According to the financial report released in Nairobi, finance costs rose sharply to KSh 4.72 billion, reversing a KSh 683 million net gain recorded in 2024. However, the company’s operating cash flow improved by 40.2 per cent to KSh 39.77 billion, supporting ongoing capital investments and partial debt repayments.
Electricity sales rose by 887 gigawatt hours (GWh) during the year, driven by increased customer connections and a more reliable power network. The company noted that average system efficiency improved to 78.79 per cent, up from 76.84 per cent, as a result of reduced technical and commercial losses.
Operating expenses dropped by KSh 3.86 billion, attributed to lower provisions for bad debts under IFRS 9 standards and tighter cost control measures. Power purchase expenses also reduced by KSh 5.94 billion, supported by a more stable Kenyan shilling, which eased the foreign exchange impact on energy costs.
Kenya Power’s total assets grew by 8.6 per cent to KSh 389.04 billion, showing steady investment in the grid, automation, and substation projects. Shareholders’ equity increased by 25.2 per cent to KSh 109.34 billion, placing the company in Kenya’s elite KSh 100 billion equity tier for the first time in its history.
The firm said it invested KSh 29.6 billion in network modernization, substations, and automation projects during the year, compared to KSh 24.9 billion in the previous period. Non-current liabilities dropped slightly by 1.8 per cent to KSh 162.28 billion, while current liabilities rose by 11.3 per cent to KSh 117.43 billion due to increased short-term obligations.
Kenya Power’s improved equity position is attributed to profit retention and lower foreign currency debt exposure. The company also reported that it has made progress in receivable collection, which helped reduce its working-capital deficit.
The board of directors, chaired by Joy Brenda Masinde, approved a final dividend of KSh 0.80 per share, bringing the total dividend for the year to KSh 1.00 per share, including an interim dividend of KSh 0.20 already paid. The final dividend will be paid on January 30, 2026, to shareholders listed on the register as of December 2, 2025.
Kenya Power Managing Director Dr. Joseph Siror said the company will continue investing in grid reliability, renewable energy integration, and digital transformation to improve customer experience. He added that Kenya Power’s strong financial position and improved liquidity provide a foundation for sustainable growth despite the year’s revenue decline.
Analysts noted that the utility’s results reflect a transition period following an exceptional 2024 performance driven by foreign exchange gains and tariff reviews. They expect moderate earnings growth in the coming years, supported by cost savings and steady demand for electricity.
The 2025 financial results show that Kenya Power remains profitable and resilient, despite the challenging macroeconomic environment and currency fluctuations. The company’s steady expansion of assets and shareholder equity signals improved solvency and a stronger capital base to support its long-term strategic goals.
