Kenya Power has cleared 85 per cent of all debt it owes the Kenya Electricity Generating (KenGen) Company.
According to KenGen, Kenya Power cleared the arrears which amounts to Ksh.18.57 billion, between July and October 2018.
“We are glad to report that, though trade receivables from Kenya Power stood at Sh21.88 billion as at 30 June 2018, at the time of releasing the results (post balance sheet), Sh18.57 billion had been received,” KenGen Managing Director Rebecca Miano said in at a briefing on Friday.
Following the clearance, Kenya Power now owes KenGen Ksh. 3.3 billion even though the company recorded a drop in net earnings for the financial year that ended in June 2018. The decrease was attributed to an unstable economy following last year’s general elections.
Earlier reports indicate that Kenya Power owed the energy producer Ksh. 15.42 billion as at the end of June 2017 which was a significant increase from the Ksh. 8.3 billion owed to the firm in 2016.
The announcement follows KenGen’s declaration of a Ksh.2.6 billion dividend for the current financial year. The bonus is attributed to the power producer’s increase in sales by six per cent from 7,556 gigawatt hours (GWh) in 2017 to 7,989 GWh in 2018 as well as a two per cent increase in pre-tax profit for the 12 months ending June 30th, 2018 to Ksh. 11.75 billion, up from Ksh.11.46 billion last year.