NAIROBI, KENYA, DEC 21— Kenya Power and Lighting Company (KPLC)has revised its Five-Year Strategic Plan (2018/19 to 2022/23) to align its operations to the changing business environment and meet the needs of the customers and other stakeholders.
With this, the country’s sole power distributor has announced it will deepen engagements with electricity sector players in seeking to harmonise and adopt an optimal generation expansion programme for the medium term.
Kenya Power’s Chairman Amb. (Eng.) Mahboub Maalim said this will enable the Company to review the energy supply and demand situation and make appropriate decisions. He was speaking at the Company’s 97th Annual General Meeting (AGM) that was held at the Safari Park Hotel on Friday.
“There is need to ensure that we always maintain a reasonable demand supply balance to keep our tariffs at optimum level for sustainability. We will be more careful before allowing new power purchase agreements. This will help the sector to avoid developing excess capacity which leads to undesirable high tariffs,” he said.
The move comes as the Nairobi Securities listed firm moves to optimize its operations after a 64.4 per cent drop in net profit for the year to September 30, blamed on increased transmission and distribution costs.
The power distribution company posted a Ksh1.9 billion profit after tax, a slump from Ksh5.3 billion it posted in a similar period last year.
This is despite an increase in overall revenue which grew 4.3 per cent to Ksh125.9 billion from Ksh120.7 billion, buoyed by a growing customer base which equally reflects in electricity sales.
Electricity sales grew by 2.3 per cent from 8.3 billion units the previous year to 8.5 billion units in the period under review, due to an expanded customer base.
This combined with an improved average yield led to 3.8 per cent increase in sales revenue which closed at Ksh95.5 billion, up from Ksh91.9 billion the previous year.
Kenya’s power generation capacity has expanded considerably in recent years owing to investments in generation by both public and independent power generators. However, delays in planning and implementation of transmission projects have in some instances hindered effective absorption of this capacity into the grid.
“The board and management will continue to work together to strengthen the Company’s internal controls, strive for the highest ethical business standards and improve service delivery to customers and grow shareholder value,” said Maalim.