Kenya Power has recorded a decline in its profit for the second year running.
The monopoly posted 25 percent lower in the financial year ended June 2019 compared to 2018. The company posted Sh1.92 billion net profit for the financial year 2018.
The drop came after despite the firm reduced the number of new investments in a bid to increase the profits at the end of the day.
In a statement issued on Thursday, Kenya Power acting managing director Jared Otieno attributed the decline to the high cost the firm incurred during the generation of electricity.
“The drop in profits is attributed to, among others, an increase in non-fuel costs in line with the company’s long-term strategy to grow cheaper and cleaner renewable energy,” he said.
Last year, the electricity distributor revealed that it made a profit decline of up to 63.7 per cent. In June 2018, Kenya Powers assets were valued at Sh54 billion.
The amount was less compared to the current liabilities, which amounted to Sh106 billion.
The decision not to invest was reached after it was speculated that the move is behind the declining profits of the firm. The company resolved to pay debts and salaries as it sought to regain its lost glory.