In a remarkable financial recovery, Kenya Power and Lighting Company Plc has reported a profit before tax of Sh43.67 billion for the fiscal year ending 30 June 2024.

This figure stands in stark contrast to the Sh4.43 billion pre-tax loss experienced in the preceding financial year, highlighting a dramatic turnaround in the company’s fortunes.

The surge in profits can largely be attributed to a 21 per cent increase in revenue, notably from the commercial and industrial sectors.

This growth was fuelled by the connection of 447,251 new customers to the electricity grid, coupled with heightened economic activity, especially in the manufacturing industry.

In addition to increased sales, Kenya Power has benefited from reduced finance costs, thanks to the appreciation of the Kenyan Shilling against major global currencies.

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This situation resulted in an unrealised foreign exchange gain of Sh7.88 billion, a substantial recovery from the previous year's loss of Sh16.87 billion.

Nevertheless, the company faced challenges with rising power purchase costs, which climbed to Sh150.61 billion.

This increase was driven by the need to purchase additional units to satisfy escalating demand and the high exchange rates experienced earlier in the financial year.

"The Company has made significant strides in enhancing its financial performance and position, as evidenced by increased sales revenue and improved working capital position," the company remarked in a statement.

Despite this positive trajectory, Kenya Power's working capital remains in the negative, although it has demonstrated steady improvement, recovering from negative Sh74.85 billion in FY 2019-2020 to negative Sh27.44 billion by the conclusion of the reporting year.

Looking ahead, Kenya Power is dedicated to delivering sustained value through operational excellence and sustainable growth.

The company aims to focus on executing high-impact projects and initiatives outlined in its Strategic Plan, ensuring comprehensive resource allocation and fostering a culture of operational excellence within its workforce.

In an additional update, the company’s Board of Directors has proposed a first and final dividend of Sh0.70 per ordinary share for the year ended 30 June 2024, subject to applicable withholding tax for shareholders registered at the close of business on 2 December 2024.

Should this proposal receive approval, the dividend is expected to be disbursed around 31 January 2025.