Corona dims Kenya Power’s Sh5bn in four-month sales

Energy Cabinet secretary Charles Keter. FILE PHOTO | NMG 

Summary

• The electricity distributor attributed the loss to the Covid-19 restrictions that have seen businesses cut down their activities in response to the pandemic.
• The firm has already issued its third profit warning in a row, meaning the utility’s net earnings will decline by at least 25 per cent of last year’s profit of Sh262 million — which was the worst in 16 years.
• The Sh5.6 billion is equivalent to about five per cent of its full year sales of Sh112 billion at the end of June.

Kenya Power lost Sh5.6 billion in electricity sales, equivalent to about 5.5 per cent of its full year in the four months to June, citing reduced electricity consumption due to coronavirus control measures

The electricity distributor attributed the loss to the Covid-19 restrictions that have seen businesses cut down their activities in response to the pandemic.

The firm has already issued its third profit warning in a row, meaning the utility’s net earnings will decline by at least 25 per cent of last year’s profit of Sh262 million — which was the worst in 16 years.

The Sh5.6 billion is equivalent to about five per cent of its full year sales of Sh112 billion at the end of June.

Energy Cabinet secretary Charles Keter told the Senate Committee on Energy that the widespread interruption of commercial and industrial operations has hit electricity consumption.

“Between March and June 2020, electricity consumption declined by about 14.8 per cent corresponding to a decrease in energy consumption by about 341 GWh.

“Consequently, electricity sales revenue reduced by about Sh5.6 billion,” Mr Keter said during a virtual meeting chaired by Nyeri Senator Ephraim Maina.

He said out of Kenya Power’s 7.1 million customer base, six million are domestic customers consuming less than 100 units or Sh200 per month worth of electricity.

“In the months of March to June, we witnessed increase in electricity consumption of five per cent of domestic customers constituting six million. This in terms of revenue is about less than 10 per cent. About 90 per cent of Kenya Power revenue is from one million customers who are heavy commercial and SMEs,” said Mr Keter.

“Kenya Power revenue is from one million customers who are heavy commercial and SMEs.”

The State has banned public gatherings, closed bars and schools and imposed a 9pm-4am curfew, which was previously longer, starting from dusk to dawn until June 6 when it was reviewed.