Power purchase costs, including fuel and foreign exchange costs, increased by Sh6 billion to Sh90.1 billion in the 12 months to June last year. The profit warning also means that the dividend drought for KPLC shareholders continues. The shareholders have not earned dividend since 2017, even as other firms that feed the power utility firm continue to rake in returns. Additional energy charges from new power plants and increased transmission costs also ate into its earnings. Finance costs, which were on the rise the previous year and substantially dented profit, went down by 20 per cent.

Source: Standard Digital June 16, 2020 16:51 UTC