Kenya Power has issued a profit warning for the financial year ended June 30, 2019.
The power distributor in a notice has told its shareholders, potential investors and the general public that the net earnings for the period under review is projected to decline by 25 per cent compared to the period ended June 30, 2018.
The firm said, “The drop in profits is attributable to, among others, an increase in non-fuel costs in line with the company’s long term strategy of growing cheaper and cleaner renewable energy.”
“The growth in renewable energy is aimed at enhancing the company’s sustainability and making affordable to all whilst reducing dependency on thermal generation.”
Listed companies are by law required to issue profit warnings to its shareholders should they project a decline in profitability.
The firm says that under its current strategy, the long term cost of electricity to consumers will come down and the long term profitability of the company will increase.