Kenya Power half year profits up 4.3% to Sh10.4bn on increased electricity demand

Kenya Power Managing Director and CEO Dr Joseph Siror speaking during the KPLC Half-Year 2025/26 financial results at the Sarova Stanley Hotel, Nairobi on February 3, 2026./HANDOUT

Listed power distributor Kenya Power has posted a 4.3 per cent rise in net earnings for the first six months to December 31, 2025, to Sh10.4 billion, attributed to higher electricity sales and lower finance costs.

The financial results unveiled on Tuesday morning in Nairobi shows that revenue from electricity sales climbed 6.9 per cent to Sh114.9 billion, supported by stronger demand and improved distribution efficiency, while finance costs fell by Sh492 million following scheduled loan repayments and reduced debt levels.

The firm's gross earnings for the period increased 5.5 per cent to Sh14.83 billion. During the period, electricity sales grew 10.5 percent to 6,086 GWh, as distribution efficiency improved to 78 percent from 76.4 percent, reflecting network upgrades and loss-reduction initiatives. However, power purchase costs rose by Sh5.33 billion in line with higher demand, with total energy purchases increasing 8.3 percent to 7,807 GWh.

The firm’s balance sheet continued to strengthen, with total borrowings declining by six per cent to Sh84.2 billion by December, while negative working capital narrowed to Sh12.5 billion from Sh19.1 billion in June 2025.

Cash generated from operations rose to Sh14.1 billion. Operating expenses increased to Sh25.2 billion from Sh23.7 billion, driven by higher provisions for expected credit losses, increased depreciation from capitalised network projects, and staff-related costs.

Following the results, the board has declared an interim dividend of Sh0.30 per share, payable toward the end of next month, to shareholders on the register as of February 23, 2026.

Speaking at the investor briefing session in Nairobi, Kenya Power boss, Joseph Siror said that the half-year results reflect continued momentum in strengthening performance and building resilience through a stronger balance sheet.

“The continued growth in electricity sales, supported by rising demand, improving distribution efficiency, combined with lower finance costs, lay out a solid foundation for improved profitability," Siror said.

Looking ahead, Kenya Power plans to secure supply, cut losses, modernise the grid, and improve the customer experience as it powers the nation’s sustainable growth.