Kenya Power profit falls 25 percent, blames 2017 elections
3 weeks ago, 11:44
Kenya Power has issued a profit warning of up to 25 percent for the financial year ending June 30.
In a Monday notice, the firm advised shareholders, potential investors and the general public to expect a lower net earnings of more than 25 per cent compared to those reported last year same period.
“The warning is based on the un-audited results for the financial year ending June 30 and the evaluation made by the Board, with reference to figures and information currently available,” reads part of the notice.
It says that revenue growth in the year was constrained by the depressed economic environment, poor hydrological conditions in 2017 and the protracted electioneering period. “This slow business environment led to a significant decline in the company’s financial performance, in addition, increased financing costs and delayed review of retail electricity tarrifs led to reduced earnings.”
Acting Managing Director Jared Othieno said the company has taken decisions which include the revision of corporate strategy, diversification of existing revenue streams and engagement with stakeholders to put the firm back to sound financial health.
The profit warning means that the utility firm now expects to post a net profit of at least Sh5.45 billion, compared to Sh7.27 billion posted in June last year.
Category: business news