, NAIROBI, Kenya, Oct 24 – Kenya power is still facing collection challenges from government agencies, county governments, and corporates.
Managing Director Ken Tarus says the firm is owed about Sh3.2 billion from customers especially commercial and government agencies.
The firm, which reported reduced pretax earnings in their 2017 full year results had early stated that they are open to negotiations with defaulting electricity consumers to settle their unpaid dues.
“I may not have the exact breakdown of what is owed by government, parastatals or large power consumers,” he said.
The firm posted Sh9 billion pretax profit in their 2017 full year results a 9.7 percent decrease compared to the Sh12 billion in 2016 attributable to increase in transmissions and distribution costs by Sh4.7 billion and a decreased finance income.
Fuel costs increased by Sh9billion in the period under review to Sh22 billion while power purchase costs declined by Sh784 million to Sh50.6 billion owing to reduction in geothermal generation throughout the year and reduction in units purchased from hydro which also declined in generation owing to poor rains.
The firm plans to continue in network expansion targeting to invest Sh40 billion to increase 1.2 million customers.
Finance income decreased to Sh46 million during the year compared to Sh965 million realised the previous period due to reduced bank balances.
On the other hand, finance costs decreased by Sh160 million during the year to Sh5.6 billion compared to Sh5.8 billion the previous year. The reduction is attributable to restructuring of the loan portfolio in the last financial year.
The Directors recommend to shareholders, a first and final dividend of Sh0.50 same as the previous year – Sh0.50 per share per ordinary share for the year ended 30th June 2017, subject to withholding tax where applicable, to shareholders registered in the books of the Company at the close of business on 30th November 2017.