Kenya Power has sunk into a loss-making territory for the financial year ending June 2020, registering the worst results in decades.
The firm reported an unaudited net loss of Sh 2.98bn in the financial year ended June 2020, as compared to a net profit of Sh 262m it posted in the year to June in 2019. The sole distributor of electricity has been on the downward trend in the past few years compared to Kenya Electricity Generating Company (KenGen), which has also continued to rake in billions in profits mostly from Kenya Power reporting Sh 10.5bn in profit after tax compared to Sh 7.88bn it made in the year to June 2019.
Delay publishing of results
KenGen and Kenya Power will release their audited financial results in December 2020 and January 2021 respectively, following approval by the Capital Markets Authority (CMA). They had revenues of Sh 46.52bn in the period under review compared to Ksh45.97 for the financial year ended June 2019. The two listed power firms had sought and received regulatory approvals from the Capital Markets Authority to delay publishing their results owing to the delay in the appointment of the Auditor General.
Other State-owned players in the energy industry gave mixed reports, with the Kenya Electricity Transmission Company (Ketraco) reporting a loss while the Geothermal Development Company (GDC) reported Sh 1.58bn profit. Kentraco, on the other hand which is charged with construction and maintenance of high voltage line, reported a loss of Ksh963 million from a revenue of Sh 2.67bn.
According to the Treasury in the Consolidated National Government Investment report, the drastic decrease in net profit is largely attributed to the huge losses by Kenya Railways Corporation which posted a net loss of Sh 24.18bn in 2019/20 financial year compared to Sh 8.48bn in 2018/19 financial year.
