, NAIROBI, Kenya, Feb 25- Kenya power has posted a 16 percent decline in their pre-tax profit to Sh5.73 billion in the first half of 2016 down from Sh6.87 billion in 2015.
The management attributes the decrease to growth in finance cost of network reinforcement projects.
Basic revenue however rose to Sh41.7 billion by December 2015 from Sh37.6 billion realised in a similar period in 2014 representing an 11 percent increase owing to increase in electricity sales.
“The growth in basic revenue resulted from a growth in customer base which increased by 6 percent, our drive to connect more households has borne fruit. Together with an uptake in economic activities, we have seen our unit sales rise,” said Ben Chumo, Managing Director Kenya Power.
The number of customers connected increased to 4,180,742 as at December 2015 compared to 3,017,495 in 2014.
As a result of increased use of geothermal generated power sources compared to more expensive thermal sources, income from fuel cost recovery declined almost by half to Sh7.5 billion from Sh16.7 billion realised in a similar period in 2014.
This decrease saw the total electricity revenue drop to Sh53.5 billion from Sh55.2 billion realised in 2014.
“The decline also resulted from macroeconomic factors including the depreciation of the shilling against the dollar during the period under review,” Chumo added.
Transmission and distribution costs rose by 25 percent to Sh13 billion from Sh10.5 billion recorded same period last year.
“We remain confident that there is room for growth for the Company. Going into 2016, we are confident that as the macro environment corrects to achieve a stable outlook we will realise the rewards of our ambitious growth plans. Already the company has been able to achieve an above 80% efficiency with continued system stabilisation,” he stated.