Kenya Power has reported a profit after tax of KSh24.99 billion for the financial year ended June 30, 2026, marking another profitable year for the electricity distributor and an improvement from the previous financial year. The results announced on September 18, 2026, show that the company’s profitability increased by 2.13 percent, from KSh24.47 billion in 2024/25 to KSh24.99 billion in 2025/26. 

The latest results are significant because Kenya Power has been implementing measures aimed at improving its financial position, reducing debt-related costs, increasing electricity sales and improving the efficiency of its distribution network. The company says these measures, combined with increased electricity consumption and the connection of hundreds of thousands of new customers, contributed to the stronger financial performance.

KSh24.99 billion profit after tax

The main headline from the latest results is the KSh24.99 billion profit after tax. This is the amount remaining after the company accounts for operating expenses, finance costs and taxation.

The increase from KSh24.47 billion in the previous financial year represents a rise of about KSh520 million. Although the percentage growth was relatively modest, the result continued a period in which Kenya Power has remained profitable after experiencing significant financial challenges in earlier years.

The company recorded KSh36.01 billion in profit before tax, compared with KSh35.38 billion in 2024/25. Its total revenue rose substantially, reaching KSh238.24 billion, compared with KSh219.29 billion in the previous financial year. 

The figures therefore show that the company generated significantly more revenue, although a substantial portion of that additional revenue was absorbed by higher operating and power-related costs.

Electricity revenue rises sharply

One of the major factors behind the improved results was the growth in electricity revenue.

Kenya Power reported that electricity revenue increased by KSh18.96 billion to KSh238.24 billion during the year. Total electricity sales increased by approximately 12 percent, rising from 11,403 gigawatt-hours in 2024/25 to 12,777 GWh in 2025/26. 

This increase indicates that more electricity was consumed by customers across different categories, including households, businesses, industries and other users.

Higher electricity consumption is important for Kenya Power because the company's revenue is closely linked to the amount of electricity sold to customers. As demand increases, the distributor has an opportunity to generate more revenue, provided that it can manage the cost of purchasing and distributing that electricity.

The growth was also supported by the expansion of Kenya Power's customer base.

More than 411,000 new customers

Kenya Power said it connected 411,710 new customers during the 2025/26 financial year.

The additional customers contributed to the growth in electricity consumption and revenue. Every new connection expands the company's customer base and potentially creates a longer-term source of electricity sales.

The increase also reflects continued efforts to expand electricity access in different parts of Kenya. Connecting more homes, businesses and institutions to the electricity network can increase economic activity while simultaneously expanding the market available to the power distributor. 

For Kenya Power, however, customer growth also comes with additional responsibilities. New customers require investment in transformers, power lines, meters and other infrastructure. The company therefore has to balance the cost of expanding the network against the revenue generated from additional electricity sales.

Improved electricity distribution efficiency

Another important development was the improvement in distribution and transmission efficiency.

Kenya Power reported that its distribution and transmission efficiency improved from 78.79 percent to 81.42 percent during the financial year. 

In simple terms, improved system efficiency means that a larger proportion of electricity purchased for distribution reaches the point where it can be supplied and billed to customers.

Improving efficiency is particularly important for an electricity distributor because losses can have a major effect on profitability. When electricity is purchased but does not translate into equivalent billed sales, the company can face pressure on its margins.

Kenya Power has therefore been investing in measures such as network monitoring, grid improvements, automation and revenue protection.

Finance costs fall by 34.68 percent

Another major contributor to the improved profit was the sharp reduction in finance costs.

Kenya Power reported that its finance costs fell by 34.68 percent to KSh3.08 billion, representing a reduction of about KSh1.64 billion from the previous year. The company attributed the reduction mainly to lower interest expenses following a reduction in outstanding loan balances. 

This is important because debt has historically been a major issue for Kenya Power. Lower borrowing means the company does not have to spend as much money servicing loans and paying interest.

When finance costs fall, more of the company's operating earnings can remain available as profit. This partly explains why the company's profit increased even as it faced higher operating expenses.

The company's improved debt position was also reflected in its borrowings, which fell to approximately KSh79.82 billion, according to the company's reported financial highlights. Its gearing also improved substantially. 

Stronger working capital position

Kenya Power also reported a major improvement in its working capital position.

At the end of June 2025, the company had negative working capital of approximately KSh19.21 billion. By June 30, 2026, the position had turned positive at approximately KSh1.90 billion.

That represents an improvement of about KSh21.11 billion in one year. 

Working capital is important because it provides an indication of a company's ability to meet short-term financial obligations. Moving from a negative position to a positive one represents a significant change in the company's short-term financial position.

For Kenya Power, the improvement provides greater financial flexibility as it continues investing in the electricity network and managing its obligations.

Kenya Power invests KSh28 billion

Despite focusing on profitability and debt reduction, Kenya Power continued to invest heavily in its infrastructure.

The company reported capital expenditure of approximately KSh28 billion during the 2025/26 financial year. Total assets increased by KSh32.45 billion to approximately KSh421.49 billion. 

These investments are important because Kenya's electricity demand continues to grow. Additional generation capacity requires corresponding investment in transmission and distribution infrastructure so that electricity can reach consumers.

Kenya Power has identified grid automation, smart metering, revenue protection, digitalisation and infrastructure investment among its priorities going forward. 

Comparison with the previous financial year

The latest results can be better understood by comparing them with the 2024/25 performance.

In 2024/25, Kenya Power reported profit after tax of KSh24.47 billion, down from KSh30.08 billion in 2023/24. That represented an 18.7 percent decline at the time. 

The 2025/26 result therefore represents a return to modest profit growth.

The improvement was not simply the result of higher revenue. Kenya Power also benefited from lower financing costs and improved network efficiency. At the same time, the company continued to face cost pressures.

According to financial reporting on the latest results, cost of sales increased to approximately KSh152.7 billion, while operating expenses rose by about 26.7 percent to KSh53.8 billion. These higher costs limited the extent to which the increase in revenue translated into additional profit. 

Dividend for shareholders

The improved financial performance has also affected shareholders.

Kenya Power's board recommended a final dividend of KSh1.20 per ordinary share, bringing the total dividend for the financial year to KSh1.50 per share, including the KSh0.30 interim dividend already paid. 

The total dividend represents an increase from the KSh1 per share paid for the previous financial year.

For shareholders, dividends provide a direct financial return from the company's profits. However, the final dividend remains subject to the applicable approval process.

 *What the profit means for Kenya Power* 

The latest profit suggests that Kenya Power's financial position has continued to improve, particularly in areas such as debt management, electricity sales and network efficiency.

However, the profit should not be interpreted to mean that all challenges facing the company have disappeared.

Electricity distribution is a capital-intensive business. Kenya Power has to maintain thousands of kilometres of power lines, substations, transformers and other infrastructure. It also has to invest in new connections and upgrade existing facilities.

The company must therefore continue balancing three competing requirements: keeping the network reliable, maintaining financial sustainability and ensuring customers receive electricity services efficiently.

The increase in operating costs also demonstrates that higher revenue does not automatically translate into a similar increase in net profit.

Earlier half-year results showed the trend

The full-year results were preceded by encouraging half-year figures.

For the six months ended December 31, 2025, Kenya Power reported KSh10.40 billion profit after tax, compared with KSh9.97 billion in the corresponding period of 2024. Profit before tax increased to KSh14.83 billion from KSh14.06 billion. 

Electricity sales revenue during the half-year increased by 6.9 percent to KSh114.87 billion, while electricity unit sales increased by 10.5 percent to 6,086 GWh.

Finance costs also fell during the six-month period, helped by scheduled loan repayments and lower debt levels. 

These half-year results provided an indication that the company was heading toward another profitable financial year.

Future plans

Kenya Power has indicated that it intends to build on the latest financial performance by investing in several areas.

Among the priorities are grid automation, smart metering, revenue protection, customer-facing digital services, workforce renewal and network infrastructure. The company also plans to pursue new revenue streams and prepare for increased electricity generation and transmission capacity. 

Smart metering and digitalisation could help the company improve customer services while strengthening monitoring of electricity consumption. Revenue protection initiatives could also help reduce losses associated with illegal connections, meter-related issues and unbilled electricity.

Infrastructure investment will remain particularly important as electricity demand grows.

 *What customers should watch* 

For ordinary Kenyan electricity consumers, the profit announcement is likely to raise questions about whether improved company finances will eventually translate into better services.

The financial results themselves do not automatically mean that electricity prices will fall or that outages will disappear. Electricity tariffs and consumer bills depend on several factors, including generation costs, regulatory decisions, fuel and other pass-through costs, exchange-rate movements and the wider electricity supply structure.

However, a stronger financial position can give Kenya Power greater capacity to invest in infrastructure, modernise its systems and address weaknesses in the distribution network.

The company's stated focus on grid automation, smart meters, network investment and digital customer services will therefore be important to watch in the coming financial year.