Industry News
05 February 2026
Georan Admin
Kenya Power Posts Sh10.4 Billion Profit as Electricity Demand Surges
Kenya Power reports a 4.3% rise in net earnings for the first half of 2025/26, driven by higher electricity sales and improved distribution efficiency across the country.
Kenya's national power distributor, Kenya Power and Lighting Company (KPLC), has posted a 4.3 percent rise in net earnings for the first six months to December 31, 2025, reaching Sh10.4 billion. The growth is attributed to higher electricity sales and lower finance costs, reflecting continued momentum in strengthening the utility's performance.
Revenue from electricity sales climbed 6.9 percent to Sh114.9 billion, supported by stronger demand from residential, commercial, and industrial customers. Electricity sales volumes grew 10.5 percent to 6,086 GWh, while distribution efficiency improved to 78 percent from 76.4 percent – a gain resulting from ongoing network upgrades and loss-reduction initiatives across the country.
The company's total energy purchases increased 8.3 percent to 7,807 GWh in line with higher demand, though this also pushed power purchase costs up by Sh5.33 billion. Operating expenses rose to Sh25.2 billion from Sh23.7 billion, driven by higher provisions for expected credit losses, increased depreciation from capitalised network projects, and staff-related costs.
Kenya Power's balance sheet continued to strengthen. Total borrowings declined by six percent to Sh84.2 billion by December, while negative working capital narrowed significantly to Sh12.5 billion from Sh19.1 billion in June 2025. Cash generated from operations rose to Sh14.1 billion, signalling improved operational health.
Speaking at the investor briefing session in Nairobi, Kenya Power Managing Director and CEO Dr Joseph Siror said the results reflect continued momentum in building resilience. The board subsequently declared an interim dividend of Sh0.30 per share, payable to shareholders on the register as of February 23, 2026.
For electrical contractors and supply companies like Georan Solutions Limited, the growth in Kenya Power's infrastructure investments signals expanded opportunities in electrical installation, network upgrades, and supply of quality electrical components across the country.
Revenue from electricity sales climbed 6.9 percent to Sh114.9 billion, supported by stronger demand from residential, commercial, and industrial customers. Electricity sales volumes grew 10.5 percent to 6,086 GWh, while distribution efficiency improved to 78 percent from 76.4 percent – a gain resulting from ongoing network upgrades and loss-reduction initiatives across the country.
The company's total energy purchases increased 8.3 percent to 7,807 GWh in line with higher demand, though this also pushed power purchase costs up by Sh5.33 billion. Operating expenses rose to Sh25.2 billion from Sh23.7 billion, driven by higher provisions for expected credit losses, increased depreciation from capitalised network projects, and staff-related costs.
Kenya Power's balance sheet continued to strengthen. Total borrowings declined by six percent to Sh84.2 billion by December, while negative working capital narrowed significantly to Sh12.5 billion from Sh19.1 billion in June 2025. Cash generated from operations rose to Sh14.1 billion, signalling improved operational health.
Speaking at the investor briefing session in Nairobi, Kenya Power Managing Director and CEO Dr Joseph Siror said the results reflect continued momentum in building resilience. The board subsequently declared an interim dividend of Sh0.30 per share, payable to shareholders on the register as of February 23, 2026.
For electrical contractors and supply companies like Georan Solutions Limited, the growth in Kenya Power's infrastructure investments signals expanded opportunities in electrical installation, network upgrades, and supply of quality electrical components across the country.
