Kenya Power engineers connecting electric cables. [Photo/kenyaengineer.co.ke]
The Kenya power profits after tax in the fiscal year that ended June 2017 stagnated as it recorded less than one per cent increase in profits after tax.
In a report published on Friday, the state entity reported a profit of sh7.27 billion after-tax attributing the minute increase to the high costs of transmissions and distribution.
The utility firm noted that the distribution cost increased by 16.6 per cent from sh28.7 billion to Sh 34.4 billion prior to the time of compilation of the research report.
“The rise was attributed to higher operational and maintenance costs on the expanded electricity network, depreciation due to increased capital investment and the rising cost of doing business,” quoted Kenya Power by Business daily.
Kenya power recently undertook a programme of connecting 6.2 million people to electricity by the end of June 2017 translating to 75 per cent of country's total population.
Last week during an interview with Reuters, the Kenya power managing director, Ken Tarus, noted that they had a plan of adding 1.2 million customers to the national grid by June next year.
Tarus had also noted that they are planning to connect 3400 kilometers of the medium voltage lines to national grid by June. Kenya power however maintained the dividend share at Sh0.50.