Kenya Power reported a net loss of Ksh 3.2 billion for the fiscal year ending June 30, 2023.
However, its operating profit improved from 17.1 billion to 19.2 billion.
“The positive performance above was eroded by exceptionally high finance costs, which increased significantly by 89% from KShs 12.76 billion to KShs 24.15 billion, mainly driven by the depreciation of the Kenya shilling against major international currencies,” KPLC says in its audited financial statement.
“In the period, the Kenya Shilling depreciated by 19% from KShs. 118 per USD in June 2022 to KShs. 140 per USD in June 2023,” the utility firm adds.
To mitigate the impact of foreign exchange exposure on its operational performance, Kenya Power is planning to restructure its loan book.
This strategy aims to reduce the company’s dollar-denominated loan obligation.
Furthermore, Kenya Power intends to explore new business growth areas as a means to stimulate electricity demand and ensure sustainable growth.
“The overall fundamentals remained stable despite the challenging macroeconomic environment that was characterised by a depreciating shilling and an increase in the overall cost of doing business,” said Kenya Power Managing Director and CEO Joseph Siror.
