KENYA POWER LOST SOME POWER 2017 YEAR.

Power comes from being in control even in the case of corporate organisations and so, for Kenya Power & Lighting company ltd each inability to influence its fortunes in 2017 year to last June, amounted to loss of some power.

According to audited figures released this week by the Managing Director, Dr Kenneth Tarus, Kenya Power ended the year with its profit margin down to 8.46% from 2016's 10.3%.

This was principally because cost pressures reflected more demand level as against efficiency level achieved with the exception of finance cost which declined 2.75% to Kes 5651m due to restructured loan portfolio.

Transmission and distribution costs rose by 16.6% to Kes 33416m due to maintenance activities; fuel cost increased by 74.3% to Kes 22124m because of increased usage of thermal energy sources and power purchase cost dropped as units purchased and geothermal generation reduced within the year.

So, as total income rose by 10.4% to Kes 128,918m, the main impetus came from 76.7% to Kes 22108m and to a lesser degree 5.69% increase in non fuel revenue to Kes 91952m while 23.9% drop in forex adjustment income to Kes 6682m was a major drag assisted by near dry up of interest income to Kes 46m, down 95.2%.

Equally not helpful was the very low (0.88%) growth in Other operating income to Kes 8130m.

In the end, Kenya Power ended with 9.68% drop in Profit before tax to Kes 10912m from the double digit increase in Total income

However, says CEO Tarus, Kenya Power is adopting new strategies to enhance revenue growth, diversify revenue stream and keep customers more satisfied. Decoded: Kenya Power may regain more power next financial year if all goes well.

Meanwhile, shareholders will be expected to approve recommended dividend of Kes 0.50 per share when they meet on December 1 at Safari park Hotel, Nairobi.

KENYA POWER & LIGHTING: Kesm.
                               2017.              2016
Total income.    128,918.        116810
Non fuel revenue 91952.          87081
Forex income.        6682.            8782
Fuel recharge rev. 22108.       12512
Non fuel costs      6199.            6175
Forex costs.          22124.        12690
Other Op income.   8130.          7470
Transmission cost 33416.     28651
Interest income.            46.         965
Finance cost             5651.       5811
Profit before tax.   10912.      12082
Profit margin %        8.46.          10.3


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