Kenya Power lifted its interim dividend by 50 percent to Sh0.30 per share for the six months to December 2025, extending its renewed commitment to shareholder payouts on the back of stronger earnings.
The utility, which paid Sh0.20 per share over the same period last year, reported a rise in net profit to Sh10.4 billion from Sh9.9 billion. The dividend will be paid on March 27 to shareholders on the register as of February 23. Last year’s payout marked Kenya Power’s first interim dividend in nine years, signalling a decisive turnaround for the NSE-listed firm.
That recovery has been reflected in the company’s share price, which has climbed to about Sh15.20 from below Sh2 in August 2024. Management attributed the improved half-year performance to higher electricity sales, which grew by 6.9 percent to Sh114.87 billion from Sh107.42 billion, supported by rising demand and better distribution efficiency.
In its results, the company said sustained growth in power sales, coupled with lower finance costs, had created a firm base for stronger profitability, improved service delivery and long-term financial stability. Kenya Power added that it would focus on maintaining adequate supply as demand expands, speeding up loss-reduction efforts and rolling out grid modernisation and digitisation projects to boost reliability, efficiency and customer experience.
Also Read: Auditor-General Nancy Gathungu Flags Starehe Schools Over Illegal Fee Hikes
Operating costs rose by Sh1.43 billion to Sh25.16 billion, driven by higher provisions for expected credit losses as customer debt increased, greater depreciation from newly capitalised network projects and higher staff-related expenses. Finance costs, however, fell by a further Sh492 million, reflecting reduced interest expenses following loan repayments and lower debt levels.
The company said its balance sheet continued to strengthen after trimming total borrowings by six percent to Sh84.23 billion as at December 31, 2025. The stronger shilling also worked in its favour, given that roughly 90 percent of its loans are denominated in foreign currencies, mainly the dollar and euro. Kenya Power now plans to clear all hard-currency commercial debt by June this year, building on gains made through the moratorium period that improved its cash position, working capital and key financial ratios.
