Kenya Power reports Sh3.2 billion loss
Kenya Power has announced a net loss of Ksh 3.2 billion for the fiscal year ending June 30, 2023.
This significant financial setback has been attributed to several factors, including currency fluctuations and the high cost of power purchase.
Kenya Power struggled in the face of the depreciating Kenyan shilling against the US dollar and Euro, the primary currencies in which power purchase agreements are made.
This decline in the exchange rate significantly increased the cost of power purchases, putting immense pressure on the company’s financial performance.
During the reporting period, finance costs soared by a staggering 89 percent, to Sh24.2 billion.
This steep increase in financial costs further exacerbated the company’s financial woes.
In response to these challenges, Kenya Power has revealed plans to restructure its loan book. The aim is to minimize the loan obligation that is dollar-denominated, reducing the company’s exposure to foreign exchange rate fluctuations.
To mitigate the impact of these financial hurdles, Kenya Power is actively exploring new business growth opportunities. By venturing into untapped areas, the company aims to boost electricity demand and achieve sustainable growth in the long term.
Kenya Power’s efforts to address its financial challenges are critical not only for the company’s stability but also for ensuring uninterrupted electricity supply to the nation. Stakeholders and the public will be closely monitoring the company’s progress in implementing these measures and its impact on its future financial performance.
The results come amid uproar over the soaring cost of electricity prices. The price of electricity tokens have increased by up to 30% in the past year, with the cost passed on to several consumers in a move that has negatively impacted on the cost of living.
Kenyans have also raised concerns over the consistent power outages, with some lasting hours.
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