Kenya Power swings to profitability

Listed power utility company Kenya Power has reported a 21 per cent jump in revenues that helped the loss-making state entity bounce back to profitability with the firm registering a Ksh30 billion net profit. Stephen Kinadira Vikiru, General Manager Finance at Kenya Power, shared insights on the factors driving this impressive transformation in a recent interview with CNBC Africa. The key drivers behind Kenya Power's remarkable performance included a significant increase in unit sales to the commercial and industrial segment, along with a boost from the tariff review. Additionally, the strengthening of the Kenyan shilling against major currencies led to a substantial reduction in financing costs, further contributing to the positive financial results. Looking ahead, Kenya Power plans to focus on network reinforcement activities to enhance service delivery, mitigate forex impacts, and stabilize its financial position by reducing exposure to foreign currency denominated loans. The company also announced plans to issue dividends to shareholders after a long hiatus, signaling improved cash flows and profitability. However, amidst discussions on privatization in the energy sector, Kenya Power is navigating regulatory changes that aim to open up the transmission and distribution space to private operators without a direct privatization of the utility firm. These developments underscore the evolving landscape in which Kenya Power operates, requiring strategic alignment to adapt to changing environments and regulations.