Kenya Power

NAIROBI, Kenya, Feb 28 – Kenya Power has reported a major drop in earnings for the half year ended December 31 2022 posting a Sh1.1 billion loss compared ...

Finance costs increased to Sh7.39 billion from Sh6.77 billion resulting from a rise in unrealised foreign exchange loss arising from revaluation of foreign-denominated loans as a result of depreciation of the Shilling against major currencies. Similarly, fuel costs increased from Sh10.8 billion in the previous period to Sh15.08 billion attributable to the significant increase in fuel prices during the period under review. In the period, operating costs increased from Sh19.03 billion to Sh21.7 billion due to increased foreign exchange losses arising from revaluation of outstanding payments to power generators denominated in foreign currencies as a result of the depreciation of the Kenya Shilling.

Utility provider says continued weakening of the shilling is impacting its financial performance.

State-owned Kenya Power will charge some of its customers in dollars and euros to check foreign exchange losses following the weakening of the shilling, Business Daily newspaper reported. REUTERS/Dado Ruvic/Illustration Dollar and Euro banknotes are seen in this illustration taken July 17, 2022.