In its financial year that ended in June 2020, Kenya Power Lighting Company recorded a net loss of 2.98 billion.
Although the company is yet to publish its financial statements for the public, investors were already aware of its dwindling profit margins.
In June this year, investors received a low profit warning for the third time in a row, thus the company’s loss came as no surprise when The Treasury disclosed it to parliament.
Despite having a monopolistic control over the energy supply market, Kenya Power blamed its losses on reduced electricity consumption caused by the coronavirus pandemic.
Additionally, the delayed implementation of higher tarrifs and the high cost of buying wholesale power from KenGen were also blamed for the loss.
Sure thing, the government froze the company’s request to increase electricity prices, which consequently lowered the firm’s profits.
Also, KenGen acknowledges that the demand for its electricity had gone down due to the strict Covid-19 measures that saw businesses operate for less hours than the traditional working time.
However, Kenya Power’s profit margins started to decline in June last year – way before the country announced its first Corona-19 case; which was on March 13, 2020.