Kenya Power’s half year profits have fallen by over 25 percent as compared to the previous half-year mark profits.
The company has blamed the massive drop to challenges in the country’s economic environment.
In the year ended June 2017, Kenya Power earned Ksh120.7 billion profits before tax and a profit of Ksh7.27 billion after tax. This means that Kenya Power has has earned Ksh5.44 billion in profits after tax.
“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,” said the managing director, Mr Jared Otieno, in a statement.
Read: Grace Oluoch Named Bamburi’s New Finance Director
Otieno says that the Board was undertaking a number of key strategic initiatives to improve the financial results of the company going forward, such as revision of the corporate strategy so as to focus more on the customer, engaging with stakeholders to spur demand and diversification of the company’s existing revenue streams.
Recently, President Uhuru Kenyatta ordered that power rates be reviewed downwards for the benefit of small and medium enterprises in the country. This may see revenues for Kenya Power go down further.
The top managers of the company were recently recently arrested in graft cases, and their places taken by their juniors in an acting capacity.
Today, the Director of Public Prosecutions Noordin Haji announced that prosecution files against the managers had gone missing, hence ordering a probe
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