By Kenya Power and Lighting Company Plc reported revenue of KSh238.24 billion for the year ended June 30, 2026, up from KSh219.29 billion a year earlier, while profit after tax rose to KSh24.89 billion, according to the company’s audited financial results.
The Kenya Power financial results 2026 show continued growth in electricity sales, although higher operating expenses and power purchase costs limited the increase in profitability.
Revenue from contracts with customers increased by KSh18.96 billion, or about 8.6%, from KSh219.29 billion in 2025 to KSh238.24 billion. Kenya Power attributed the increase mainly to higher electricity sales across customer categories and additional consumption during the year.
The company said 12,777 GWh of electricity was sold during the year, compared with 11,403 GWh in the previous financial year. It also said 411,710 new customers were added during the period.
Distribution and transmission efficiency improved to 81.42% from 78.79%, according to the results. Kenya Power said the improvement supported its ability to convert rising electricity demand into sales.
The stronger revenue performance translated into a gross margin of KSh86.59 billion, compared with KSh74.62 billion a year earlier.
Operating profit, however, increased only marginally to KSh38.67 billion from KSh38.47 billion as operating expenses rose substantially.
Operating expenses increased by KSh11.33 billion to KSh53.75 billion from KSh42.42 billion. The company said the increase was partly driven by higher expected credit losses, alongside increases in insurance, depreciation and other operating expenses.
Power purchase costs also increased by 5.52% to KSh152.65 billion. Kenya Power said the increase was below the 8.64% growth in revenue, reflecting efforts to manage the cost of electricity supply amid rising demand.
The company said the lower growth in power purchase costs relative to revenue helped strengthen its gross profit margin to 36% from 34.1% in the previous year.
Finance costs provided some relief, falling to KSh3.08 billion from KSh4.72 billion. Kenya Power attributed the decline primarily to lower interest expenses following a reduction in outstanding loan balances.
Profit before tax increased to KSh36.01 billion from KSh35.38 billion, while profit after tax stood at KSh24.89 billion, compared with KSh24.49 billion in the previous financial year.
Basic and diluted earnings per share increased to KSh12.81 from KSh12.64.
The results show that the company continued to strengthen its balance sheet during the year.
Total assets rose to KSh421.49 billion from KSh388.04 billion, an increase of about KSh32.45 billion. Property, plant and equipment increased to KSh295.55 billion from KSh287.48 billion.
Kenya Power said capital expenditure reached about KSh28 billion during the year, supporting investment in network expansion, reinforcement and modernisation.
Shareholders’ equity increased to KSh131.80 billion from KSh109.34 billion, mainly because of higher retained earnings. The company said its equity-to-assets ratio improved to 0.60 from 0.80.
The company also reported an improvement in its working-capital position, moving from negative KSh19.21 billion to positive KSh21.11 billion. Its current ratio improved to 1.02 from 0.84.
Total borrowings declined to KSh79.82 billion from KSh85.14 billion. Kenya Power said borrowings due within one year fell to KSh10.64 billion, reducing near-term debt requirements.
Cash generated from operating activities, however, fell to KSh38.22 billion from KSh39.77 billion. Net cash used in investing activities stood at KSh28.13 billion, while net cash used in financing activities was KSh10.84 billion.
Cash and cash equivalents at the end of the financial year stood at KSh6.96 billion, down from KSh7.69 billion.
The company said its financial position and profitability supported continued shareholder value creation. The board recommended a final ordinary dividend of KSh1.20 per share, subject to shareholder approval.
The recommendation comes after Kenya Power reported a stronger first half of the financial year. For the six months ended Dec. 31, 2025, the company reported profit before tax of KSh14.83 billion, up 5.5% from KSh14.06 billion a year earlier. Revenue from electricity sales rose 6.9% to KSh114.87 billion during that period.
Kenya Power said its outlook remains focused on strengthening financial and operational performance through continued electricity demand growth, improved system efficiency, stronger revenues, lower financing costs and investment in the electricity network.
The company also identified customer access, digital capabilities, workforce development and new revenue streams as areas of focus.
Kenya Power is listed on the Nairobi Securities Exchange and is responsible for distributing electricity to customers across Kenya.
Its financial performance is closely linked to electricity demand, power purchase costs, system efficiency, financing costs and investment in network infrastructure.
