In a financial twist, Kenya Power, the state-owned electricity distributor, revealed a net loss of KSh 3.2 billion for the fiscal year ending June 30, 2023. This comes as a stark contrast to the KSh 3.3 billion net profit reported at the close of the 2022 financial year. Despite an operating profit surge from KSh 17.1 billion in 2022 to KSh 19.2 billion in 2023, the positive strides were overshadowed by soaring finance costs, largely attributed to the depreciation of the Kenyan shilling against major international currencies.
Joy Brenda Masinde, Chairperson of Kenya Power’s board, highlighted that the 19% depreciation of the Kenya Shilling from KSh 118 per US$ in June 2022 to KSh 140 per US$ in June 2023 played a significant role in the financial downturn. Provisions for electricity debt and other receivables also climbed by KSh 3.2 billion due to increased unsettled customer debts during the fiscal year.
Dr Eng. Joseph Siror, Managing Director & CEO, explained that unrealized foreign exchange losses on power purchases surged from KSh 1.12 billion in 2022 to KSh 5.32 billion in 2023, stemming from the depreciation of the Kenya Shilling against the US$ and the Euro, the predominant currencies in power purchase agreements.
To address these challenges, Kenya Power has scheduled its Annual General Meeting (AGM) virtually on December 8, 2023, at 11:00 am. Shareholders are tasked with electing four directors to fill vacancies in the board, aligning with the new governance structure as the government relinquishes control. Private shareholders will elect four directors, while the government will appoint five.
During this AGM, shareholders are expected to greenlight the revised Company’s Articles of Association, aligning with the Companies Act, 2015, and adhering to best corporate governance practices. As Kenya Power charts a course through financial headwinds, the AGM becomes a pivotal moment in reshaping its trajectory and ensuring a sustainable future.
