Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Energy Cabinet Secretary Charles Keter speaking during the ongoing State House Energy Summit has however pointed out that the cost may increase depending with the distance from a transformer/FILE


Kenya Power issues profit warning attributes it to increased fuel costs

Kenya Power/FILE

NAIROBI, Kenya, Sep 19 – Kenya Power’s net earnings for the year ended June 2019 is expected to drop by over 2 percent, as compared to the previous year.

This means that the firm now expects to have its net profits standing below Sh1.92 billion recorded during the same period last year.

In statement, KPLC said the decline in profits has been brought about by increase in non-fuel costs.

“The drop-in profits are attributable to, among others, an increase in non-fuel costs in line with the company’s long-term strategy to growing cheaper and cleaner renewable energy,” the statement signed by acting managing director Jared Othieno states.

He further said that the NSE-listed firmia working towards reducing the cost of energy to meet customer needs.

“Under the current strategy, the long-term cost of energy to the consumers will be reduced and the long profitability of the company will be increased,” he adds.

Kenya Power posted a 63.7 percent decline in net profit to Sh1.92 billion in the financial year ended June 2018 on higher costs.

The board further said that transmission and distribution costs went up as a result of maintenance activities on expanded network.

The announcement also comes at a time where Kenya has continued to witness increased fuel prices in the past 6 months.

In the latest review, the Energy and Petroleum Regulatory Authority introduced an increase in Super petrol and Diesel prices increased by Sh0.28 per litre and Sh2.44 per litre respectively in Nairobi.

Advertisement. Scroll to continue reading.

The users of Kerosene, however, saw its prices decrease by Sh3.31 per litre in Nairobi.

EPRA said that the changes were due to various rise in the cost of import as well as the slight depreciation of the Kenyan shilling relative to the US dollar.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...