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KPLC in Sh3.2b profit despite drought

NAIROBI, Kenya, Oct 30 – Buoyed by high electricity tariffs and reduced system losses, KPLC has recorded an 83 percent increase in after tax profits to Sh3.2 billion for the year ended June 30th 2009.

KPLC Managing Director Eng Joseph Njoroge also attributed this performance to gains realised from improved operational efficiency.

“The total turnover increased from Sh25.3 billion to Sh38 billion and this increment is mainly is as a result of retail tariff,” he said at a press briefing.

KPLC is benefiting from a 24 percent increment in retail power tariff approved by the Energy Regulatory Commission mid last year.

The Board of Directors has recommended a total dividend payout of Sh8 per share.

Although the unit sales increased marginally from 5322 Gigawatt Hour (GWh) to 5422 (GWh) Mr Njoroge assured that their performance was sustainable in the future owing to the major investments that they have planned.

“Last year, there was very little growth in the GDP and that was reflected in the sector, but it’s not anything to worry about,” he said.

With the anticipated improvement in the economy, he expressed optimism that the sales would improve.

“There has been a twp percent increase in the sales already and because there are various things happening at the macroeconomic level, we expect that even this year, we will get good sales so we will be able to sustain our profitability,” the MD added.

Various projects such as the creation of the Rural Electrification Authority, partnership with banks to provide customers with access to cheaper loans have been undertaken to connect many customers and help increase the electricity penetration level from the current 20 percent.

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There are also other initiatives that have been undertaken to accelerate the development of green energy and ensure that power availability in the country.

Despite these measures however consumers continue to pay high electricity bills due partly to the increase in the fuel cost charge which currently stands at Sh7.80 per kilowatt hour.

This has been a consequence of drought and an intensification of thermal generation which is directly impacted by the high fuel prices

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