Kenya Power has announced plans to engage in garage business and lease it idle land in a bid to boost revenues.
It is not yet clear how much the two ventures will bring in for the power distributor, whose revenues for the year ending June 2019 shrunk by 92 percent.
“We have a transport section and we want to open that as a public garage since it is idle at the moment. We also want to lease out idle land. The garage sits on huge land and we will liaise with insurers to give us an opportunity to repair vehicles. Going by the growing numbers of vehicles on roads, it is a potential business,” said Kenya Power Managing director Bernard Ngugi.
The garage business will be handled by its subsidiary, Kenya Power International, which was started four years ago in diversification move.
Read: Kenya Power Profits Dim By 92PC From Ksh3.27 Billion to Ksh262 Million
The company also seeks to make more money by leasing its six pieces of land in Mombasa, two in Nakuru, Eldoret (two) and several others in Nyeri and Nairobi.
Kenya Power is also seeking to make money through a lease agreement with telecommunication companies in the optic fibre industry.
Kenya Power reported that its profit after tax fell from Ksh3.27 billion to Ksh262 million for the year ending June 2019.
The slump was attributed to the rise in non-fuel power purchase costs from Ksh52.795 billion to Ksh70.878 billion.
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