- Kenya Power’s profit drops 18.7% amid forex shifts
- Utility raises dividend despite revenue and tariff declines
NAIROBI, KENYA – Kenya Power’s profit fell 18.7% to Ksh24.5 billion ($189.6 million) in the year ending June 2025, hit by lower tariffs and higher financing costs driven by foreign exchange movements.
The state-controlled utility said the increased finance costs were mainly due to unrealised foreign exchange losses as the Kenyan shilling stabilised against the US dollar. It recorded a Ksh794 million ($6.6 million) forex loss on loans in 2025, reversing a Ksh7.89 billion gain from the previous year.
While currency stability reduced forex gains, it eased the burden of servicing Power Purchase Agreements (PPAs), most of which are denominated in foreign currencies.
Dividend and investor confidence
Despite the earnings drop from Ksh30 billion ($232 million) in 2024, Kenya Power raised its final dividend to Ksh0.80 per share, bringing the total payout to Ksh1 per share, equivalent to about Ksh1.95 billion ($15 million).
“There is a desire to provide a predictable dividend. But our dynamic is quite complex if you look at the tariffs and forex exposures to be able to build confidence among investors,” said Stephen Vikiru, the utility’s General Manager Finance.
The move marks the second straight year of dividend payments, a signal of recovery that has strengthened investor confidence. Kenya Power’s share price has surged more than 900% since 2023, reaching Ksh14.85 ($0.11) on the Nairobi Securities Exchange (NSE).
Revenue fell 5.1% to Ksh219.29 billion ($1.7 billion) – its first year-on-year decline since 2013 – as lower tariffs and reduced forex gains offset higher electricity sales.
“The base tariff has been coming down over the last two years, reflecting the government’s commitment to lowering the cost of electricity. It will make it more affordable for our customers to consume more electricity,” said CEO Joseph Siror.
Financial resilience and balance-sheet recovery
Even with reduced earnings, Kenya Power’s 2025 profit remains at least three times higher than any year before 2024, underscoring sustained recovery, improved liquidity and better cost efficiency.
The company’s financial health also improved sharply, with its working-capital deficit shrinking to Ksh19.2 billion ($148.6 million) – down from a peak of Ksh74 billion ($572.8 million) six years earlier – driven by enhanced cash flow and operational efficiency.
Total assets rose from Ksh358 billion ($2.8 billion) to Ksh389 billion ($3 billion), reflecting continued investment in electricity infrastructure and grid modernisation.
Kenya Power’s turnaround – marked by improved balance-sheet stability, resumed dividend payouts and soaring investor confidence – positions the utility as one of East Africa’s most closely watched state-owned companies amid regional efforts to reform the power sector.
