Kenyatta family majority owned Kenya Power (KPLC) has posted a massive loss in 17 years.
According to insights from the Treasury, the electricity monopoly returned a net loss of Sh2.98 billion in the financial year ended June 2020.
This Ukur Yattani revelations comes as a shock to Kenya Power management which is yet to make public its financial statements for the year to June.
This offers investors a clearer picture on the performance of the utility, which in June issued its third profit warning in a row.
The Broke KPLC had cited reduced electricity consumption due to coronavirus control measures and the rising cost of buying wholesale power from firms. The theatrics they wanted to use to impose higher tariffs on consumers.
Kenya Power had made an application to the regulator for an increase in electricity prices by up to a fifth, saying it is key to reversing its reducing profitability — which has seen its earnings drop for three years in a row.
But the State has frozen the review, which combined with the flat sales has pulled the firm to losses.
KenGen reckons that demand for its electricity had dropped by about eight per cent due to Covid-19 restrictions that have seen businesses cut down their activities in response to the pandemic.
Kenya Power’s net profit for the six months to December declined 71.8 per cent to Sh693 million, indicating that its troubles started ahead of Kenya announcing its first case of Covid-19 on March 13.