KPLC Book Website

.,.
Gas Insulated Switchgear (GIS) is a compact way to encapsulate electrical equipment such
as switches and high voltage circuits breakers in a sub station, confining them to small
spaces and enabling them to be operated more efficiently
VISION
Energy solutions provider of choice.
By becoming the preferred energy solution for
businesses and individuals, we empower our customers
to achieve more and reach their full potential.
MISSION
Powering people for better lives by innovatively
securing business sustainability.
By striving to provide world-class products and services
that delight our customers and transform lives as
we ensure viability of our business.
CORE VALUES
 We put our customers first as they matter most
 We work together as one team to achieve our goals
 We are passionate about powering the nation
 We believe in integrity and delivering on our promises
 We strive for excellence in all that we do
 We are accountable to our customers and stakeholders
CONTENT ABOUT THIS REPORT______________________________________________________________3
CORPORATE INFORMATION_______________________________________________________4
BUSINESS HIGHLIGHTS____________________________________________________________6
BOARD PROFILE___________________________________________________________________8
EXECUTIVE MANAGEMENT_______________________________________________________ 16
CHAIRMAN’S REPORT____________________________________________________________19
MANAGING DIRECTOR & CEO’S REPORT_________________________________________ 23
CORPORATE GOVERNANCE REPORT_____________________________________________ 29
BUSINESS SUSTAINABILITY_______________________________________________________ 46
DIRECTORS’ REPORT____________________________________________________________ 51
DIRECTORS’ RENUMERATION REPORT___________________________________________ 53
STATEMENT OF DIRECTOR’S RESPONSIBILITIES __________________________________ 56
REPORT OF THE AUDITOR GENERAL ___________________________________________57-66
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE

YEAR ENDED 30 JUNE 2020_________________________________________________________67
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020_________________________ 68
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020__________ 69
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020__________________ 70
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020____71-134
TEN YEAR FINANCIAL AND STATISTICAL RECORDS____________________________137-140
STATISTICAL TABLES____________________________________________________________ 141
NOTICE OF THE ANNUAL GENERAL MEETING____________________________________ 155
PROXY FORM___________________________________________________________________ 159
2 The Kenya Power and Lighting Company Plc Annual Report and Financial Statements 2019/2020
ABOUT THIS REPORT
The Kenya Power and Lighting Company Plc Annual Report and Financial Statements covers the period 1st July 2019 to
30th June 2020. This Report will be considered for adoption by shareholders at the 99th Annual General Meeting to be
held on 1st April 2021. The Report is prepared under the guidance of the Board of Directors who are accountable for the
accuracy and completeness of its content.
Report Guidelines
In preparation of this Report, the Board seeks to provide an objective view of the business performance and disclosure
of any material matter for consideration by shareholders. The content development process is guided by applicable legal
and regulatory requirements including the Companies Act 2015, International Financial Reporting Standards (IFRS), Public
Audit Act 2015, the Code of Corporate Governance for State Corporations (Mwongozo Code), the Capital Markets Act
and applicable regulations namely; the Capital Markets Authority’s Code of Corporate Governance Practices for Issuers
of Securities to the Public 2015, Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations 2002 (as
amended), as well as Global Best Practice.
Scope of the Report

This Report gives an overview of our financial, operational, business sustainability and governance performance for the
year ended 30th June 2020. In addition, the Report articulates our corporate governance framework.
Material Issues
Material issues are those that are likely to impact the ability to achieve our goals and objectives and the sustainability of
our business. This Report contains potential key matters that were identified through a broad range of processes, from
engagement with our stakeholders to our own internal processes such as risk management and considering international
trends. Material events up to the date of publishing this Report have been incorporated.
Feedback
We appreciate your feedback on this report for improvement in future reporting. Please forward suggestions to
integratedreport@kplc.co.ke.
The Kenya Power and Lighting Company Plc Annual Report and Financial Statements 2019/2020 3
CORPORATE INFORMATION
DIRECTORS
Ms. Vivienne Yeda Chairman -Appointed on 13 November 2020
Amb (Eng) Mahboub Mohamed Ceased to be Chairman on 13 November 2020
Mr. Bernard Ngugi Managing Director & CEO
Eng. Jared Othieno Was Acting Managing Director & CEO until 28th October 2019
Mr. Adil Khawaja Resigned on 13 July 2020
Hon. Amb. Ukur Yattani Cabinet Secretary, National Treasury
Dr. Eng. Joseph Njoroge Principal Secretary, Ministry of Energy
Mr. Wilson Mugung’ei Resigned on 13 July 2020
Mr. Kairo Thuo Resigned on 13 July 2020 and elected on 13 November 2020
Mrs. Brenda Engomo Resigned on 13 July 2020
Hon. Zipporah Kering Resigned on 13 July 2020
Mrs. Beatrice Gathirwa Alternate Director to Cabinet Secretary, National Treasury
Eng. Isaac Kiva Alternate to Principal Secretary, Ministry of Energy
Eng. Abulrazaq Ali Appointed on 20 July 2020 and elected on 13 November 2020
Eng. Elizabeth Rogo Appointed on 20 July 2020 and elected on 13 November 2020
Ms. Caroline Kittony-Waiyaki Appointed on 20 July 2020 and elected on 13 November 2020
Mr. Sachen Gudka Appointed on 20 July 2020 and elected on 13 November 2020
SECRETARY Imelda Bore

Certified Public Secretary (Kenya)
P.O. Box 30099 – 00100, Nairobi
REGISTERED OFFICE Stima Plaza

Kolobot Road, Parklands
P.O. Box 30099 – 00100, Nairobi
BANKERS Standard Chartered Bank Kenya Plc Citi N.A.

Harambee Avenue Upper Hill Road
P.O. Box 20063- 00200, Nairobi P.O. Box 30711- 00100, Nairobi
Kenya Commercial Bank Plc Equity Bank Kenya Plc

Moi Avenue Hospital Road
P.O. Box 30081 – 00100, Nairobi P.O. Box 75104 – 00100, Nairobi
The Co-operative Bank of Kenya Plc Commercial Bank of Africa

Stima Plaza Ragati Road
Stanbic Bank Plc Absa Bank Kenya Plc

Kenyatta Avenue Absa Headquarters, Waiyaki Way
PRINCIPAL AUDITOR The Auditor General
Anniversary Towers
P.O. Box 30084 – 00100, Nairobi
DELEGATED AUDITOR Ernst & Young LLP

Kenya Re Towers, Upper Hill
Off Ragati Road
P.O. Box 44286 – 00100, Nairobi
PRINCIPAL LEGAL ADVISOR Hamilton Harrison & Mathews Advocates
Delta Office Suites, Waiyaki Way

P.O. Box 30333 – 00100, Nairobi
BUSINESS HIGHLIGHTS
Wind Wind
Hydro 12% Hydro
29.40% 30%
Thermal
26.41%
Thermal
26%
30.43%
Geothermal
30%
Generation Mix
50.00% 47.22% 46.69%
45.00% 43.79%
Hydro
40.00% Geothermal
Thermal
35.00% 32.55% 32.22% Cogeneration
30.13%
30.00% Solar
Wind
25.00%
Imports
20.58%
20.00%
15.00%
11.29%
10.00% 7.69%
5.00%
0.00%
2017/18 2018/19 2019/20
Energy Purchased (GWh) Generation Mix 2019/20

12,000 11,462
Solar Cogeneration Imports
0.80% 0.00% 1.40%
10,000
9,217 Thermal Wind
7.69%
Wind 11.20%
Impo
8,000
32.22% 1.40%
GWh
6,000 Hydro
32.22%
4,000
Geothermal
Geothermal
46.69%
46.69%
2,000
-
2014/15 2015/16 2016/1 2017/1 2018/19 2019/20
Electricity Sales (GWh) Peak Demand (MW)

9,000 2,500
8,800
2,000 1,802 1,882 1,926
8,600 1,586 1,656
1,512
8,400
8,200 1,500
GWh
GWh
8,000
7,800 1,000
7,600
7,400 500
7,200
7,000 0
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
A section of the 220-66-11 kV Nairobi City Centre Gas Insulated Substation.
BOARD PROFILE
Ms. Vivienne Yeda, OGW, LL.B, LL.M, MBA

Chairman of the Board of Directors
Ms. Vivienne Yeda was appointed the Chairman of the
Board on 13th November 2020. Vivienne is the Director
General, East African Development Bank. She holds a
Master of Business Administration (ECU), Master of Laws
(LLM) from the University College London, and a Bachelor
of Laws (LLB Hons.) from the University of Nairobi. She is
an expert in Foreign Relations Law, International Economic
Law, Business operations, and Financial transactions in
public and private sector operations including project
finance and structured finance. Vivienne is fifty-seven
years old. She joined the Board on 20th July 2020.
Mr. Bernard Ngugi, MCIPS, MKISM, CPA (K),

CPS (K), MBA, B. Com (Accounting)
Managing Director & CEO
Mr. Bernard Ngugi was appointed the Managing Director
and Chief Executive Officer of the Company with effect
from 28th October 2019. Mr. Ngugi has over thirty-one
years’ experience in the Company with expertise in
financial and revenue accounting, internal audit and supply
chain management. Mr. Ngugi is fifty-eight years old. He
holds a Master of Business Administration in Finance and
Bachelor of Commerce in Accounting from University of
Nairobi. He is a Certified Public Accountant of Kenya and
a member of the Institute of Certified Public Accountants
of Kenya. He is also a Certified Secretary and a member
of the Institute of Certified Secretaries of Kenya.
Additionally, he holds a Graduate Diploma from the
Chartered Institute of Purchasing and Supplies and is a
member of the Kenya Institute of Supplies Management.
Prior to his appointment, he was the Company’s General
Manager, Supply Chain.
Amb. Ukur Yatani, B.A. (Econ.), MA (Econ.), MPA
Cabinet Secretary, The National Treasury
Ambassador Ukur Yatani is the Cabinet Secretary, National
Treasury, a position he has held since 14th January 2020.
Prior to this appointment, he was the Cabinet Secretary for
Labour and Social Protection, a position he held for two
years. Mr. Yatani is fifty-four years old. He has previously
served as the pioneer Governor of Marsabit County, Member
of Parliament for North Horr constituency and Assistant
Minister for Science and Technology. He has also served
as Kenya’s Ambassador to Austria with Accreditation to
Hungary and Slovakia and Permanent Representative
to the United Nations in Vienna. Further to this, he has
held senior leadership positions at various diplomatic
and international agencies such as: International Atomic
Energy Agency (IAEA), United Nations Organization on
Drugs and Crimes (UNODC), United Nations Industrial
Development Organization (UNIDO), Vice Chairperson of
United Nations Convention Against Transnational Organized
Crime (UNTOC) and Vice President of Convention on
Crime Prevention and Criminal Justice (CCPJ).
He has a Master of Arts in Public Administration and
Public Policy degree from University of York, United
Kingdom; and a Bachelor of Arts in Economics degree,
Egerton University, Kenya. Amb. Yatani has over 30 years,
experience in public administration, politics, diplomacy
and governance.
Dr. Eng. Joseph Njoroge, CBS, PhD, MBA, BSc. (Eng.),

R. Cons. Eng., MIET, FIEK
Principal Secretary, Ministry of Energy
Dr. Eng. Joseph Njoroge is the Principal Secretary, Ministry
of Energy. He was the Managing Director of the Company
since June 2007 until he was appointed to his current
position in May 2013. He is sixty-three years old. He holds
a Doctor of Philosophy Degree in Business Studies, MBA
in Strategic Management and First Class Honours Degree
in Electrical Engineering all from University of Nairobi. He
is a Registered Consulting Engineer, a Chartered Engineer,
a member of the Institution of Engineering & Technology
(UK) and a fellow of the Institution of Engineers of Kenya.
He is also a member of the Institute of Directors of Kenya
and a trainer in Corporate Governance. He has wide
experience in power engineering and management of the
power sector, having joined the Company in 1980 and
serving in various senior positions prior to his appointment
as Principal Secretary, Ministry of Energy.
Eng. Abdulrazaq Ali, BSc. (Civ. Eng.), MSc. (Civ. Eng.),
MBA, R. Eng., FIEK
Eng. Abdulrazaq Ali holds a Master’s Degree in Civil
Engineering, a Master of Business Administration and
Bachelor’s Degree in Civil Engineering. He has over 35
years’ experience in public service having served in the
Kenya Government as a deputy and chief executive of
various state corporations, and later as the Permanent
Secretary in the ministries of Transport and Trade. Eng. Ali
is a registered Consulting Engineer with the Engineers Board
of Kenya and is a fellow of the Institution of Engineers of
Kenya. He is also an associate of the Chartered Institute of
Arbitrators (UK). He is sixty-six years old. Eng. Ali joined
the Board on 20th July 2020.
Ms. Caroline Kittony-Waiyaki, LLB, Dip. (Law)

Ms. Caroline Kittony-Waiyaki is an Advocate of the High
Court of Kenya with a Bachelor of Laws (LLB) degree
from the University of East Anglia, and a Post-Graduate
Diploma in Law from the Kenya School of Law. She is a
Senior Partner at Kittony Waiyaki Advocates and has over
30 years of experience in civil and commercial practice in
the areas of Conveyance, Civil and Commercial Practice
Intellectual Property, International Corporate Finance
and Public Private Partnerships, Project Development,
Joint Ventures, Mergers, Acquisitions and Energy Law.
She is a registered trustee with Capital Market Authority,
Commissioner of Oaths, Notary Public and Patent Agent.
She is fifty-five years old. Caroline joined the Board on
20th July 2020.
Eng. Elizabeth Rogo, BSc, B. Eng
Eng. Elizabeth Rogo is the Founder & Chief Executive
Officer of TSAVO Oilfield Services and has over 20 years’
international experience in Engineering, Operations, Project
Management, Consultancy, Business Development and
Management in Oil and Gas (onshore and offshore) for
global companies including BJ Services, Baker Hughes
and Weatherford International. Areas of operations
include Canada, USA, Europe and Africa. She holds a
BSc. from Mount Saint Vincent University and a Bachelor
of Engineering from Dalhousie University both in Halifax,
Nova Scotia, Canada. Eng. Rogo was recently appointed
the President for the Africa Energy Chamber (East Africa).
She is fifty-eight years old. Eng. Rogo joined the Board on
20th July 2020.
Mr. Sachen Gudka, BSc. (Econ.), Chartered

Accountant
Mr. Sachen Gudka holds a Bachelor of Science degree in
Economics from the London School of Economics, and is a
Chartered Accountant by profession, having qualified with
Price Waterhouse in London. He is now the Chairman, Chief
Executive Officer and Director of a diverse group of printing
companies in Kenya including Chrome Partners Limited,
The Print Exchange Limited, Skanem Interlabels Nairobi
Limited, Armor East Africa Imaging Supplies Limited and
Flexo World Limited. The group exports printed material
to over 15 countries and is an authorized label supplier
for major multinational and national companies as well
as UK and European retailers. He served as Chairman of
the Kenya Association of Manufacturers, and is the Vice
Chairman of Comesa Business Council and a Director of
the Kenya Private Sector Alliance. He is fifty-five years old.
Gudka joined the Board on 20th July 2020.
Mr. Kairo Thuo, LLB (Hons), CPA (K), CPA (T), ACII
Mr. Kairo Thuo is a consultant and a founder partner of Viva
Africa Consulting LLP and Viva Africa Consulting Limited.
He is both a lawyer and accountant by profession. He
attended Strathmore and the University of Nairobi where
he graduated with LLB (Hons) and is a CPA-K and CPA-T
holder. He was previously responsible for establishing and
running the Tax Transaction Advisory Group at Deloitte
and Touche and was the Director of the unit.
He has developed extensive experience in all areas of
taxation in Kenya, Uganda, Rwanda and Tanzania and
has also been involved in the tax matters involving other
countries in Africa. His experience involved all areas
of legal, finance and taxation and was also involved in
establishment of specialized tax service lines in direct
and indirect taxation including customs, international tax
and transfer pricing. He has conducted numerous tax and
legal training seminars in Kenya and Tanzania and specific
tax and legal workshops for various clients in Kenya. He
was recently recognised by KRA in the annual taxpayers’
awards for contribution towards tax education and by the
IFC for outstanding tax advice contribution in the Kenya
and Uganda Railways concession process. He is forty-six
years old. He joined the Board on 13th November 2020.
Mrs. Beatrice Gathirwa, B. Com, MBA, CPA(K)

Alternate Director, Cabinet Secretary, National
Treasury
Mrs. Beatrice Gathirwa is a Senior Deputy Accountant
General/Director of National Assets and Liabilities
Management Investment in the Directorate of Public
Investment and Portfolio Management in the National
Treasury. She Holds a Masters of Business Administration,
Moi University, Bachelor of Commerce (Accounting Option),
University of Nairobi and a Certified Public Accountant
(K). She has over 30 years’ experience in the Public Sector.
She is sixty-five years old. Beatrice joined the Board on
5th May 2017 as Alternate Director to Cabinet Secretary,
the National Treasury.
Eng. Isaac Kiva, OGW, BSc. (Eng.), R. Eng., MIEK
Alternate Director, Principal Secretary Ministry of
Energy
Eng. Isaac Kiva is currently the Secretary for Renewable
Energy at the Ministry of Energy. Eng. Kiva has wide
experience in public sector management, having held
senior Government positions for over 20 years. He holds a
Bachelor of Science degree in Electrical Engineering from
the University of Nairobi. He is a registered Professional
Engineer with the Engineers Board of Kenya and a member
of the Institution of Engineers of Kenya. He is also a gold
member of the Association of Energy Professionals (East
Africa). He is fifty-three years old. Eng. Kiva joined the
Board on 16th December 2009 as an Alternate Director
to the Principal Secretary Ministry of Energy.
Ms. Imelda Bore, LL.B, LL.M, Dip(Law), H.Dip (HR),

CPS(K), AMCIArb
General Manager, Legal Services, Regulatory Affairs &
Company Secretary
Ms. Imelda Bore was appointed to the position in December
2019 after acting from July 2018 and is the Secretary to the
Board of Directors. She is an Advocate of the High Court
of Kenya with over 15 years, post admission experience, a
Commissioner for Oaths and a Notary Public. She is a law
graduate from Moi University and the holder of a Masters
Degree in Law (LLM) (Public Finance) from the University
of Nairobi. Additionally, she holds a Diploma in Law from
the Kenya School of Law and a Higher Diploma in Human
Resource Management. Imelda joined Kenya Power in
November 2008 having previously worked at State Law
Office as a Litigation Counsel. She is an active member
of the Law Society of Kenya, a Certified Public Secretary
(ICPS (K) and an associate member of the Chartered
Institute of Arbitrators.
Wind generation, a renewable source of energy, constitutes more than 11% of the
installed capacity.
Company technicians carrying out maintenance work on our distribution lines.
EXECUTIVE MANAGEMENT
General Manager, Legal,

Managing Director & CEO, General Manager, Business Regulatory Affairs &
Bernard Ngugi Strategy Company Secretary
MCIPS, MKISM, CPA (K), CPS Martin John Mutuku Imelda Bore
(K), MBA (Finance), B.Com MPhil (Econ.), BA (Econ.) MKIM,
LL.B, LL.M, Dip(Law), H.Dip (HR),
(Accounting) BSMP
CPS(K), AMCIArb
General Manager, Infrastructure General Manager, Network

General Manager,
Development Management
Regional Co-ordination
Eng. Aggrey Machasio Eng. Charles Mwaura
Eng. Peter Njenga
BSc. (Elec. Tech.), R. Eng., MIEK, BSc. (Elec. Eng.), MBA, Reg. Eng.,
BSc (Elec. Eng.), MBA, R. Eng.
MIEEE MIEK
Director, Institute of Energy
General Manager, Commercial
Studies & Research
Services & Sales General Manager, ICT
Dr. Jeremiah Kiplagat
Eng. Rosemary Oduor Robert Mugo
BSc. (Appropriate Tech.), MSc.
BTech. (Elec & Comms.), MBA, BSc. (Elec. Eng.), MBA, AMP
(Tech.), PhD
R. Eng. (Engineering), MET
General Manager,
Supply Chain & General Manager, Ag. General Manager General Manager, Internal
Logistics Human Resource & Finance Audit
Dr. John Ngeno Administration CPA Stephen Vikiru Charles Cheruiyot
Bcom, Msc Cecilia Kalungu-Uvyu Bcom (Finance), MBA, B.Com (Accounting),
Procurement, PhD Bsc, MBA, MCIPD CPA(K) MBA, CIA (US), CPA (K)
Business Management
Ms. Vivienne Yeda, OGW, LL.B, LL.M, MBA
Chairman of the Board of Directors
CHAIRMAN’S REPORT
Dear Shareholders,
I
t is a great honour to have been appointed the Chairman of the Board of Directors of Kenya Power, a Company
with a great heritage and at the forefront in providing an essential service for socio-economic development of
our country. As we reflect on our performance for the year, it is also a time to review our strategies to address
challenges affecting our business performance.
As we step into a century of service to our customers, the Non-fuel power purchase costs increased from Shs 70,878
Board is privileged to guide the business turnaround strategy million the previous year to Shs 74,445 million, mainly due to
at such a time as this, and chart the course for the Company depreciation of the Shilling against major foreign currencies.
to be the energy solutions provider of choice. Fuel costs decreased to Shs 11,061 million from Shs 18,289
million the previous year due to reduced usage of thermal
The year under review was characterised by operational and
energy sources by 32%, from 1,298 GWh the previous
financial challenges in the Company, which were aggravated
period to 882 GWh.
by the outbreak of the COVID-19 pandemic in the second
half of the financial year. The Government instituted safety Transmission and distribution costs increased to Shs 47,834
measures to contain the spread of the virus including restriction million from Shs 41,043 million due to higher allowance for
of movements which led to constrained business activities. expected credit losses, provisions for obsolete and slow-moving
This adversely impacted the country’s economic growth, with inventories following review of the estimation methodology
Gross Domestic Product (GDP) contracting by 5.7 percent by the Board. However, the Company continued to adopt
in the second quarter of 2020. measures aimed at managing operational costs during the year.
The safety measures together with the negative GDP growth, Other operating income decreased by Shs 1,199 million, from
affected the Company’s electricity sales and revenue collection. Shs 8,586 million from the previous year to Shs 7,387 million,
Electricity sales decreased by an average of 14.8% in the due to a reduction in deferred income from amortization
last quarter of the year. In addition, revenue collection from of capital contributions. On the other hand, finance costs
electricity consumers was affected as customers were unable increased by Shs 2,162 million, from Shs 10,315 million to
to meet their bill payment obligations on time resulting in an Shs 12,477 million mainly caused by increased unrealised
increase of electricity debt by Shs. 3,849 million. The total foreign exchange differences due to volatility of the Kenya
revenue amounted to Shs. 133,258 million compared to Shs. shilling against major foreign currencies.
133,141 million the previous year, representing a marginal
The Company recorded a loss before tax of Shs 7,042
increase of 0.09%.
million, a decline from the previous year’s profit before tax
System losses remained relatively high at 23.46% due to of Shs 334 million.
technical and commercial factors arising from the expanded
transmission and distribution network as well as increased Dividends
electricity pilferages. The Company has instituted various The Board of Directors does not recommend payment of a
measures while leveraging on technology to curb electricity dividend on ordinary shares for the year ended 30th June 2020.
theft and reduce technical losses.
The current take-or-pay pricing model for Power Purchase
Agreements factors in fixed capacity charges or deemed
energy generation which have been unfavourable to our
business in the absence of anticipated demand growth. In the
“The total revenue amounted
last five trading periods, electricity sales grew at an average
of 3.9% against a 6% growth projected in the approved retail
to Shs. 133,258 million
tariff. The unrealised sales have consistently resulted into
lower-than-expected revenues leading to eroded financial
compared to Shs. 133,141
performance for the Company. This is further compounded
by the continued delay in review of the retail tariffs that
million the previous year,
reflect actual revenue requirements.
representing a marginal
Business Performance
During the year, basic revenue increased by Shs 3,743 million
increase of 0.09%”
from Shs 112,429 million the previous year to Shs 116,172
million. This increase is mainly attributable to improved average
yield due to increased consumption by domestic customers Future Outlook
by 6% and consumption by Small and Medium Enterprises The Company has initiated a business turnaround and
(SMEs) customer segment by 0.9%. However, the revenue transformation strategy to expeditiously improve on financial
growth was eroded by a reduction in the Commercial and and operational aspects of our business, while balancing
Industrial customers’ consumption by 3.5%. social responsibilities to enhance business sustainability.
The turnaround strategy is underpinned by four key focus Mohammed and Board members who diligently served the
areas for rapid results: growing sales, improving revenue Company during their tenure.
collection efficiency, increasing business operational efficiency
Thank you, shareholders, for your confidence in us and
and enhancing cost efficiency.
electing this Board during the last Annual General Meeting
We have initiated the process of reviewing the generation held on 13th November 2020. We reiterate our commitment
expansion programme with the aim of ensuring that the cost to turning around the Company towards profitability and
of power remains competitive for the benefit of our customers enhancing shareholder value.
and to enhance the Company’s financial sustainability.
Board Changes
On 13th of November 2020, I was appointed the Chairman
of Board of Directors.
I wish to take this opportunity to thank members of the Board Vivienne Yeda, OGW
for having confidence in me to lead this ship to prosperity. My Chairman, Board of Directors
appreciations to the previous Chairman Eng. Amb. Mahboub
RIPOTI YA MWENYEKITI
Wapendwa, Wanahisa,
N
i heshima kubwa kuteuliwa kuwa Mwenyekiti wa Bodi ya Wakurugenzi ya Kenya Power, Kampuni iliyo
na urithi mkubwa na katika mstari wa mbele katika kutoa huduma muhimu kwa maendeleo ya kijamii na
kiuchumi ya nchi yetu. Tunapotafakari juu ya utendaji wetu kwa mwaka, pia ni wakati wa kukagua mikakati
yetu ya kushughulikia changamoto zinazoathiri utendaji wetu wa biashara.
Tunapoingia katika karne, mpya ya huduma kwa wateja wetu, tarajiwa. Katika vipindi vitano vya mwisho vya biashara,
Bodi imebahatika kuongoza mkakati wa kubadilisha biashara mauzo ya umeme yalikua kwa wastani wa 3.9% dhidi ya
kwa wakati kama huu, na majadiliano yatakayowezesha ukuaji wa 6% uliotarajiwa katika ushuru ulioidhinishwa wa
kampuni hii kuwa mtoaji wa suluhisho la nishati wa kipekee . rejareja. Mauzo ya umeme yaliyo punguka yamesababisha
mapato ya chini kuliko yanayotarajiwa na kusababisha utendaji
Mwaka uliopita ulikuwa na changamoto za kiutendaji na
wa kifedha uliodhoofishwa kwa Kampuni. Hii inachangiwa
kifedha katika Kampuni, ambazo zilichochewa na kuzuka
zaidi na ucheleweshaji wa kuonge zewa kwa ushuru wa
kwa janga la COVID-19 katika nusu ya pili ya mwaka wa
rejareja unaotimiza mahitaji halisi ya mapato.
fedha. Serikali iliweka hatua za usalama kuzuia kuenea kwa
virusi ikiwa ni pamoja na kuzuia harakati za usafiri ambazo
Utendaji wa Biashara
zilisababisha shughuli ngumu za biashara. Hii iliathiri vibaya
Katika mwaka, mapato ya kimsingi yaliongezeka kwa Sh
ukuaji wa uchumi wa nchi, na Pato la Taifa (GDP) likapungua
milioni 3,743 kutoka Sh milioni 112,429 mwaka uliopita hadi
kwa asilimia 5.7 katika robo ya pili ya 2020.
Sh milioni 116,172. Hii inahusishwa hasa na kuboreshwa
Hatua za usalama pamoja na ukuaji mbaya wa Pato la Taifa, kwa wastani wa mavuno kwa sababu ya kuongezeka kwa
ziliathiri uuzaji wa umeme wa Kampuni na ukusanyaji wa matumizi kwa wateja wa nyumbani kwa 6% na matumizi ya
mapato. Mauzo ya umeme yalipungua kwa wastani wa sehemu ya wateja wa Biashara Ndogo na za Kati (SMEs) kwa
14.8% katika robo ya mwisho ya mwaka. Kwa kuongezea, 0.9%. Walakini, ukuaji wa mapato ulifutwa na kupungua kwa
ukusanyaji wa mapato kutoka kwa watumiaji wa umeme matumizi ya wateja wa Kibiashara na Viwanda kwa 3.5%.
uliathiriwa kwani wateja hawakuweza kutimiza majukumu
Gharama za ununuzi wa umeme bila bei ya wa mafuta
yao ya malipo ya bili kwa wakati na kusababisha ongezeko
ziliongezeka kutoka Sh milioni 70,878 mwaka uliopita hadi
la deni la umeme kwa Sh.3,849 milioni. Uuzaji wa umeme
Sh milioni 74,445, haswa kutokana na kushuka kwa thamani
wa Kampuni uliongezeka kidogo na 0.09%mwaka huu
ya Shilingi dhidi ya sarafu kuu za kigeni. Gharama za mafuta
ikilinganishwa na ukuaji wa 3.4% ulishuhdiwa mwaka uliopita.
zilipungua hadi Shilingi milioni 11,061 kutoka Shilingi milioni
Upotezaji wa nguvu za umeme ulibaki kuwa juu sana kwa 18,289 mwaka uliopita kwa sababu ya kupunguzwa kwa
23.46% kutukana za kiufundi na za kibiashara zinazotokana matumizi ya nishati ya joto na 37%, kutoka 1,298 GWh
na mtandao uliopanuka wa usambazaji na pia kuongezeka kipindi cha awali hadi 822 GWh.
kwa wizi wa umeme. Kampuni imeanzisha hatua kadhaa
Gharama za usafirishaji na usambazaji ziliongezeka hadi Sh
wakati wa kutumia teknolojia ili kudhibiti wizi wa umeme
milioni 47,834 kutoka Shilingi milioni 41,043 kwa sababu ya
na kupunguza upotezaji wa stima.
mabadliliko ya uhasibu wa uwekezaji mkopo unaotarajiwa,
Njia ya sasa ya kuchukua-au-kulipa ya mikataba ya ununuzi vifungu vya hesabu zilizopitwa na wakati na kufuatia polepole
was nguvu za umeme imezingatia kuongeza bei ya uwekezaji kufuatia njia mpya ya kukadiria iliyofanywa na Bodi. Walakini,
(capacity changes). Njia hii haiwezi kusaidia kikamilifu bila Kampuni iliendelea kupitisha hatua zinazolenga gharama za
kutilia maanani ukuaji wa mahitaji ya nguvu za umeme ilivyo uendeshaji wa shuguhli za kibiashara.
Mapato mengine ya uendeshaji yalipungua kwa Shilingi Tumeanzisha mchakato wa kukagua mpango wa upanuzi
milioni 1,199, kutoka Sh milioni 8,586 kutoka mwaka wa knjia uanzilishi wa nishati kwa lengo la kunakiki kuwa
uliopita hadi Sh milioni 7,387, kwa sababu ya kupunguzwa gharama ya umeme inabaki kuwa ya ushindani kwa faida ya
kwa mapato yaliyoahirishwa kutokana na upunguzaji wa
wateja wetu na kuimarisha uendelevu wa kifedha wa Kampuni.
michango ya raslimali. Kwa upande mwingine, gharama
za kifedha ziliongezeka kwa Sh milioni 2,162, kutoka Sh
Mabadiliko katika Bodi
milioni 10,315 hadi Sh milioni 12,477 yaliyo sababishwa
Mnamo tarehe 13 Novemba 2020, niliteuliwa kuwa Mwenyekiti
na kuongezeka kwa tofauti za fedha za kigeni ambazo
wa Bodi ya Wakurugenzi.
hazijatekelezwa kwa sababu ya tete ya shilingi ya Kenya
dhidi ya sarafu kuu za kigeni. Ninachukua nafasi hii kuwashukuru wajumbe wa Bodi kwa
kuwa na imani na mimi kuongoza meli hii kwa mafanikio.
Kampuni ilirekodi hasara kabla ya ushuru ya Sh milioni
Shukrani zangu kwa Mwenyekiti aliyenitangulia Eng. Amb.
7,042, kupungua kutoka kwa faida ya mwaka uliopita kabla
Mahboub Mohammed na wajumbe wa Bodi ambao walitumikia
ya ushuru wa Sh milioni 334.
Kampuni kwa bidii wakati wa uongozi wao.
Gawio Asante, wanahisa, kwa imani yenu kwetu na kuichagua Bodi
Bodi ya Wakurugenzi haipendekezi kulipwa gawio kwa hisa hii wakati wa Mkutano Mkuu wa Mwaka uliofanyika tarehe
za kawaida kwa mwaka ulioishia 30 Juni 2020. 13 Novemba 2020. Tunawahakikishia kujitolea kwetu kugeuza
Kampuni kuelekea faida na kuongeza thamani ya wanahisa.
Muonekano wa Baadaye
Kampuni imeanzisha mkakati wa kugeuza biashara na mkakati
wa mabadiliko ili kuboresha haraka mambo ya kifedha na
utendaji wa biashara yetu, wakati huo huo ikishughulikia
majukumu ya kijamii ili kuimarisha uendelevu wa biashara.
Mkakati umewekwa wa mabadiliko una osisitizwa na nguzo
nne muhimu ya kulenga matokeo ya haraka: kuongezeka Vivienne Yeda, OGW
kwa mauzo, kuboresha ufanisi wa ukusanyaji mapato, Mwenyekiti, Bodi ya Wakurugenzi.
kuongeza ufanisi wa utendaji wa biashara na kuongeza
ufanisi wa gharama.
Mr. Bernard Ngugi, MCIPS, MKISM, CPA (K), CPS (K), MBA, B. Com (Accounting)
MANAGING DIRECTOR & CEO’S REPORT
Dear Shareholders,
W
e began the year with high expectations and a tenacious determination to reverse negative trends in
our business, and improve the Company’s operations for enhanced overall performance. Our main
focus areas were and continue to be improving sales, enhancing revenue collection, reducing system
losses and managing costs. Indeed, our half year business performance portrayed an upward trajectory
with the Company’s profitability standing at Shs 1,139 million.
However, the positive gains were eroded in the second half During the year under review, we embarked on a mission
of the year with the onset of the COVID-19 pandemic which to ensure that supply to all our customers is metered and
affected the business environment. As power uptake was the metering installations are in good working condition.
adversely affected with the demand dropping significantly. This process involved replacement of faulty meters and
Consequently, the Company invoked the Force Majeure installation of meters to projects implemented under the
(FM) clauses in accordance with respective Power Purchase Rural Electrification Programme.
Agreements (PPAs) between the Company and generators,
In the period, we connected a total of 500,397 customers
with a view of sharing the arising cost burden due to drastic
largely through the Last Mile Connectivity project. Under
reduction in power demand caused by the pandemic. The
phase one and two of the project financed by the African
negotiations on Force Majeure were still ongoing at the
Development Bank (AfDB), we connected 57,251 and 76,266
close of the year.
customers respectively. We also extended supply to 49,104
During the year, the peak demand rose by only 44MW, from customers under World Bank (International Development
1,882MW in the previous year to 1,926MW registered in Agency) component of the project. These efforts contributed
February 2020. On the other hand, the effective generation to an increase in our customer base to 7,576,145 in line with
capacity increased to 2,708MW from 2,630MW the previous our sales strategy.
year, mainly due to commissioning of Olkaria V 158MW,
A stable and reliable network for our business is essential
geothermal capacity and retirement of 77.846MW after
in sustaining steady power supply to our customers and
expiry of the PPAs for Iberafrica 56.346MW thermal and
improving electricity sales growth. As such, we carried
Mumias Sugar 21.5MW cogeneration capacity.
out various network reinforcement projects which entailed
Considering the lower-than-expected demand growth, the reconductoring sections of power lines, building new
Company is pursuing rescheduling of planned generation substations and upgrading existing substations to enhance
capacity projects to maintain an optimal power demand- capacity, provide flexibility of the network and address
supply balance. overloads. Notable substation reinforcement projects completed
during the year included five 33/11kV substations namely
Meter reading and revenue collection activities were also
Kapsowar, Kiamutugu, Mosocho, Aldai and Kagumo. We
hindered by the effects of Covid-19. Restricted access to
also completed construction of power lines from the new
customer premises, widespread closure of Small and Medium
220/66 kV Kenyatta University substation to serve customers
Enterprises (SMEs) and reduced customer payments led to
in Ruaraka and Ruiru in the period.
an increase in overdue debt by Shs 3,849 million during
the financial year. To further enhance reliability in the lower voltage lines of
11kV and 33 kV, the Company initiated the use of thermal
Our business continuity measures helped to de-escalate
vision cameras. The cameras are used to identify loose
the adverse effects of the pandemic and prevent further
joints detected by variation in temperature to initiate timely
deterioration, allowing gradual recovery of demand. Despite
repairs and avoid breakdowns. In addition, we completed
the safety restrictions, the Company deployed effective
the deployment of the Live Line Maintenance Programme
emergency response strategies to ensure steady supply of
across all our business regions with deployment of a total of
power to our customers including critical facilities across
31 teams to operate 11kV – 33kV distribution networks with
the country.
4 teams to maintain the 66kV networks. With the Live-Line
Nonetheless, by the end of the financial year, we registered teams operational, we have witnessed a reduction in planned
no sales growth. Similarly, total revenues remained largely outages as we are able to carry out a sizeable percentage of
unchanged. our maintenance without switching off supply.
Below are the performance highlights of the Company In the year, we rolled out a network Okoa Transformer
during the year, based on our focus areas in line with our Programme, a network maintenance initiative conceived by
Corporate Strategy. the Company the previous year to improve quality of power
supply to customers and minimise on lost sales arising from
1. Improving Sales outages. The programme will entail an audit of all low voltage
Our business growth is primarily hinged on expanding transformers in the network to identify areas for preventive
electricity sales and selling all what we buy from generators. maintenance and reinforcing sections of the grid to enhance
its robustness.
2. Enhancing Revenue Collection metering was completed during the year with plans ongoing
Improved efficiency in revenue collection is critical in to commence County border metering.
improving the cash flow position of the Company thereby
Feeder Metering Project: So far, a total 1,184 out of 1,225
ensuring financial sustainability. During the year the Company
feeders have been metered to enable the determination of
implemented various initiatives geared at improving revenue
the amount of electricity units dispatched by the feeder. This
collection and reducing outstanding electricity bills.
is required to compute the energy balance against energy
To enhance high level of accountability, meter readers, billed to customers connected to the feeder.
revenue collectors and installation inspectors were assigned
Metering of Distribution Transformers: We are progressing this
to specific Company business zones all year round under
metering to enable us to zero-in on areas around distribution
the Know-Your-Meter (KYM) campaign. The campaign was
transformers where losses occur.
complemented by deployment of extra workforce drawn from
office-based staff countywide to enhance our field presence. Field Commercial Cycle Activities: The activities involves
Installation inspection was done targeting both post-paid meter inspection, meter installation and meter reading aimed
and prepaid meters in order to reduce commercial losses. A at reducing leakages down to the zonal level. The inspections
total of 1,124,934 meters were inspected during the period. target large power accounts, SMEs and ordinary meters in
feeders with high losses with a focus on customers with zero
Additionally, the Company set up a Field Enforcement Unit
consumption, non-vending meter, and in high-rise buildings.
(FEU) to combat theft of electricity for enhanced revenue
collection. The team was mandated to follow up on outstanding Roll out of Smart Meters for all Large Power and SMEs: In
customer payments as well as identify and address billing the year, we procured Advanced Metering Infrastructure
inconsistencies on flagged customer accounts. The team equipment in preparation of rollout of smart metering
started its operations in Nairobi and will be expanded to all technology to over 55,000 SMEs to improve billing efficiency
county business units in the next financial year. and reduce commercial losses. The Company also targets
to replace all meters for the remaining 1,000 large power
A total of Shs 607 million was recovered under the KYM and
customers with smart meters.
FEU activities. The heightened field presence activities will
be sustained going forward for improved revenue collection.
4. Cost Management
Further, the Company appointed key account managers during The Company is focused on managing costs at all levels
the year to handle revenue collection activities from various of our operations for improved business efficiency. These
categories of customers including Ministries, Government include finance, power purchase, capital expenditure and,
agencies and County Governments. transmission and distribution costs.
During the year, we scaled down implementation of projects
3. Reducing System Losses
to only Vital Maintenance programmes, with the aim to
Improving system efficiency is a top priority as the rising
prudently manage capital expenditure. In addition, to control
system losses are of great concern. Reduced system losses
our transmission and distribution costs, we instituted measures
would have immediate positive impact on our sales, revenue
to manage staff costs, office expenses, overtime, training
and business sustainability. Looking back over the recent
and other recurrent expenditures. Further, the Company
years, system losses have increased concurrently with the
closely monitored implementation of all budget items to
rapid growth in the Company’s electricity network and
avoid overruns.
number of customers.
The Company initiated measures to refinance our short-term
The high and medium voltage line network has expanded
debt to term loans. This is aimed at reducing cash flow pressures
from a total of 56,611km to 84,681km in the last seven years.
The low voltage network has also expanded from 73,594km
to 243,207km over the period. Additionally, our customer
base has increased from 2.3 million to 7.6 million over the
same period. Subsequently, given the expansive network
and growing customer base, system losses have increased
from 18.68% to 23.46% over the seven-year period. This is
therefore, an opportunity for improvement, but also a threat
‘‘In the period, we connected a
to our business if not addressed with urgency. total of 500,397 customers largely
We initiated enabler projects to reduce the system losses, as
part of our road map to enhance both system and business
through the Last Mile
efficiency. These initiatives premised on accurate measurement
of losses to facilitate optimisation of resources include:-
Connectivity project. ’’
Border Metering Project: The project involves metering
of power supply to our respective business regions and
counties. On completion of the project, we shall be able to
narrow down on points in the system experiencing higher
and reduce interest payable. In addition, the Company began
losses and take the necessary action. The Regional border
negotiations with financiers and development partners to
restructure the existing commercial debts.
5. Improving Customer Experience 6. Improving Service Delivery at the County Level
In order to inculcate a customer-centric culture, we introduced During the year, we reviewed our operational structure at
the use of Net Promoters Score (NPS) which measures the the county level to empower them as standalone business
willingness of customers to recommend Company products units with the aim of making them profit centers and taking
or services. NPS also gauges customers’ overall satisfaction services closer to our customers. Previously, decision-making
with a Company’s products or services and the customers’ and allocation of resources were done from the regional
loyalty to the brand. offices, a situation that impeded operational efficiency and
employee accountability. The new county structure promotes
In a recent NPS survey, our customers expressed the need
ownership, inculcates a business mindset and enhances our
for the Company to improve on issues relating to inaccurate
field presence for improved service delivery.
billings, frequent outages, slow response to emergency
calls and unsatisfactory customer service through failure The new county structure is divided into sectors and zones
to comprehensively address customer complaints. Indeed, for ease of meter reading and revenue collection. Counties
we agree that these are critical issues that require urgent are further clustered into distribution areas to make it easier
interventions. To address the concerns raised, the Company for network management teams to efficiently operate and
is implementing various initiatives aimed at resolving these maintain the network for delivery of quality and reliable
issues to improve our customer experience:- power supply. The regional office ensures counties within
their operational boundaries are well supported and resourced
Improving our Customer Touch Points: The Company’s
to operate effectively and profitably. To operationalize the
National Contact Center is the nerve center that receives
new structure, the Company internally filled all positions for
and directs customer queries and feedback to operational
the County Business Managers and realigned staff to sectors,
teams for action. Acknowledging the important role that
zones and distribution areas. The structure was successfully
the National Contact Centre plays in enhancing customer
rolled out in Nairobi and Kiambu counties during the year
experience, we are implementing key reforms to transform
before it was extended to other counties.
this critical communication hub between the Company and
customers. These reforms include expansion and resourcing
7. Conclusion
of the existing infrastructure, retraining customer facing staff
We are on a mission to transform Kenya Power into an
for business continuity and better customer service.
efficient and respected Company, trusted by customers to
Self Service Modules: In the year under review, we deployed deliver exemplary service, and valued by shareholders as a
a new telephone short code number 97771 to make it easy worthwhile investment. In this regard, we are establishing an
for customers to communicate with the Company. We also efficient business ecosystem through continual improvement
launched two self-service modules namely quick code *977# of processes, building a robust electricity network: leveraging
and my Power App to create a faster and convenient way in technology and innovative solutions to meet customers’
which customers interact with the Company. Through the current and emerging needs.
platforms, our customers are now able to independently
In addition, empowering counties as semi-autonomous
carry out various transactions including post-paid bill
business units will entrench accountability in our business
payment, electricity token purchases and incident reporting
operations, enhance efficiency, and take services closer to
among others.
our customers.
Additionally, the self-service modules enable customers
I wish to appreciate all our customers and assure them of
to submit their meter readings, make bill balance queries,
our commitment to improve our services and to meet their
report bill complaints and register for E-Bill service. This
expectations. I call upon our employees, to step up the zeal
solution has helped to minimise estimation of bills and
in serving our customers, guided by our internal clarion call
reduce customer complaints on billing. Further, customers
“Tunza Customer, Kuza Biashara” which is aligned to our
can apply for new electricity connection from a recently
culture change strategy we must embed a spirit of customer
launched online application portal.
centricity, to win stakeholder support and nurture brand
In the period under review, we carried out several customer loyalty as we position the business on a growth trajectory
outreach programmes and awareness campaigns to address into a brighter future.
customer issues and create awareness on the available self-
I would like to thank the Board of Directors for the strategic
service platforms.
support and guidance.
Enhancing Reliability of Customer Service Systems: The
To all our stakeholders, we say “asante sana”.
Company has installed Network Operations Control (NOC),
a new system to monitor the ICT infrastructure on a 24-hour
basis. Since installation, NOC has considerably improved
responses to faults and incidences thereby enhancing
system availability for critical business systems for improved
customer satisfaction.
Bernard Ngugi
RIPOTI YA MKURUGENZI MKUU / AFISA MKUU MTENDAJI
Wapendwa Wanahisa,
T
ulianza mwaka tukiwa na matarajio makubwa na dhamira ya uthabiti wa kubadili mwelekeo katika biashara
yetu, na kuboresha shughuli za Kampuni kwa utendaji bora wa jumla. Sehemu zetu kuu za kulenga zilikuwa
na zinaendelea kuwa, kuboresha mauzo, kuongeza ukusanyaji wa mapato, kupunguza upotezaji wa mfumo
na kudhibiti gharama. Kwa kweli, utendaji wetu wa biashara wa nusu mwaka ulionyesha mwelekeo wa juu
na faida ya Kampuni ilifikia kiasicha Sh 1,139 milioni.
Walakini, maendelo haya katika nusu ya pili ya mwaka na Katika kipindi hicho, tuliunganisha jumla ya wateja 500,397
mwanzo wa janga la COVID-19 ambalo yaliathiri mazingira kwa kiasi kikubwa kupitia mradi wa last mile connectivity .
ya biashara. Kutokana na athari za janga la Covid-19, ununuzi Chini ya awamu ya kwanza na pili ya mradi uliofadhiliwa na
wa umeme uliathiriwa vibaya na upungufu wa mahitaji. Kwa Benki ya Maendeleo ya Afrika (AfDB), tuliunganisha wateja
sababu hiyo, Kampuni iliomba vifungu vya Force Majeure 57,251 na 76,266 mtawaliwa. Tulipanua pia usambazaji kwa
(FM) kulingana na Makubaliano ya Ununuzi wa Nguvu za wateja 49,104 chini ya sehemu ya mradi wa Benki ya Dunia
(PPAs) kati ya Kampuni na wazalishaji, kwa nia ya gawana (Shirika la Maendeleo ya Kimataifa). Jitihada hizi zilichangia
mzigo wa gharama unaotokana na kupungua kwa mahitaji kuongezeka kwa wateja wetu hadi 7,576,145 kulingana na
ya umeme yaliyosababishwa na janga hilo. Mazungumzo mkakati wetu wa mauzo.
haya bado yalikuwa yakiendelea mwishoni mwa mwaka.
Mtandao thabiti na wa kuaminika kwa biashara yetu ni
Katika mwaka, mahitaji ya kilele yaliongezeka kwa 44MW tu, muhimu kutosheleza usambazaji wa nguvu kwa wateja
kutoka 1,882MW mwaka uliopita hadi 1,926MW iliyosajiliwa wetu na kukuza ukuaji wa mauzo ya umeme. Kwa hivyo,
mnamo Februari 2020. Kwa upande mwingine, uwezo wa tulifanya miradi anuwai ya uimarishaji wa mtandao ambayo
uzalishaji uliongezeka hadi 2,708MW kutoka 2,630MW ilijumuisha sehemu za kuboresha laini za umeme, kujenga
mwaka uliopita, haswa kwa sababu ya kuzidua Olkaria V vituo vipya na kuboresha vituo vidogo vilivyopo ili kuongeza
158MW uwezo wa jotoardhi na kustaafu kwa 77.846MW uwezo, kubadilika kwa mtandao na kupunguza mzigo. Miradi
baada ya kumalizika kwa PPAs na Iberafrica 56.346MW ya mashuhuri ya kuongeza nguvu iliyokamilishwa mwaka huu
mafuta na 21.5MW Mumias Sugar. ilikuwa pamoja na vituo vitano vya 33/11kV ambavyo ni
Kapsowar, Kiamutugu, Mosocho, Aldai na Kagumo. Pia
Kwa kuzingatia ukuaji wa mahitaji ya chini kuliko iliviyo
tumekamilisha ujenzi wa laini mbili za umeme kutoka
tarajiwa, Kampuni inafuwatilia upangaji upya wa miradi ya
kituo kipya cha Chuo Kikuu cha Kenyatta cha 220/66 kV ili
uwezo wa uzalishaji iliyopangwa kwa nia ya kudumisha
kuhudumia wateja huko Ruaraka na Ruiru katika kipindi hicho.
usawa wa usambazaji wa mahitaji ya nguvu za umeme.
Ili kuimarisha zaidi laini za chini za voltage ya 11kV na 33
Shughuli za kusoma mita na ukusanyaji wa mapato pia
kV, Kampuni ilianzisha utumiaji wa kamera za maono ya
ziliathiriwa na athari za Covid-19. Vikwazo fya kuigia
joto. Kamera hizi hutumiwa kutambua viungo vilivyo huru
katika majengo ya wateja, kufungwa kwa wafanyabiashara
vinavyotambuliwa na tofauti ya joto na hivyo kuanzisha ukarabati
ndogondogo na wa kati (SMEs) na kupunguza malipo ya
kwa wakati unaofaa ili kuepuka uharibifu. Kwa kuongezea,
wateja kulisababisha kuongezeka kwa deni lililochelewa
tulikamilisha kupelekwa kwa Programu ya marekebisho ya
kwa Sh milioni 3,849 wakati wa mwaka wa fedha.
Live Line katika maeneo yetu yote ya biashara na kupelekwa
Hatua zetu za mwendelezo wa biashara zilisaidia kupunguza kwa jumla ya timu 31 za kuendesha mitandao ya usambazaji
athari mbaya za janga hilo na kuzuia kuzorota zaidi, ikiruhusu ya 11kV - 33kV na timu 4 kudumisha mitandao ya 66kV.
kukua kwa kwa mahitaji. Licha ya vizuizi vya usalama, Pamoja na timu za Live-Line kufanya kazi, tumeshuhudia
Kampuni ilitumia mikakati madhubuti ya kukabiliana na kupungua kwa usitishaji wakusambaza kwa umeme wakati
dharura ili kuhakikisha usambazaji wa nguvu za umeme wa urekebishangi was nyaya kwani tunaweza kutekeleza
kwa wateja wetu pamoja na maeneo muhimu kote nchini. asilimia kubwa ya ukarabati bila kuzima stima.
Walakini, hadi mwisho wa mwaka wa kifedha, hatukusajili Mwaka huu, tulianzisha mradi wa Okoa Transformer
ukuaji wowote wa mauzo. Vivyo hivyo, mapato ya jumla Programme, mpango wa kerekebisha mtandao uliopuniwa na
yalibaki bila kubadilika. Kampuni mwaka uliopita ili kuboresha ubora wa usambazaji
wa umeme kwa wateja na kupunguza mauzo yaliyopotea
Ufuatao ni muhtasari wa utendaji wa kazi mwaka huu, yanayotokana na kukatika kwa usabazaji. Mpango huo
kulingana na mkakati wetu wa Kampuni: utajumuisha ukaguzi wa transfoma zote zenye viwango
vidogo cha umeme kwenye mtandao ili kubaini maeneo
1. Kuboresha Mauzo ya matengenezo ya kinga na kuimarisha sehemu za gridi
Ukuaji wa biashara yetu kimsingi unategemea kupanua ya taifa ili kuongeza uimara wake.
mauzo ya umeme na kuuza umeme wote tunayonunua
kutoka kwa wazalishaji. Katika mwaka huu wa ukaguzi, 2. Kuongeza Ukusanyaji wa Mapato
tulianzisha dhamira ya kuhakikisha kuwa usambazaji kwa Ufanisi ulioboreshwa katika ukusanyaji wa mapato ni muhimu
wateja wetu wote umepimwa na mitambo iko katika hali katika kuboresha nafasi ya mtiririko wa fedha wa Kampuni na
nzuri ya kufanya kazi. Hii ilihusisha ubadilishaji wa mita hivyo kuhakikisha uendelevu wa kifedha. Kampuni ilitekeleza
mbovu na uwekaji wa mita kwa miradi iliyotekelezwa chini mipango mbali mbali inayolenga kuboresha ukusanyaji wa
ya Programu ya Umeme Vijijini. mapato na kupunguza madeni za umeme.
Ili kuongeza uwajibikaji wa hali ya juu, wasomaji wa mita, feeder. Hii inahitajika kuhesabu usawa wa nishati dhidi ya
watoza mapato na wakaguzi wa usanikishaji walipewa umeme unayotozwa kwa wateja waliounganishwa na feeder.
maeneo maalum ya kibiashara ya Kampuni mwaka mzima
Upimaji wa Transfoma ya Usambazaji: Tunaendeleza upimaji
chini ya kampeni ya Know-Your-Meter (KYM). Kampeni
huu ili kutuwezesha kutambua maeneo katika transfoma za
hiyo ilikamilishwa na kupelekwa kwa wafanyikazi wa ziada
usambazaji ambapo hasara hutokea nyanjani.
walitolewa katika idara na afisi mbambali za kumpuni ili kukuza
upwepo wetu nyanjani Ukaguzi wa usanikishaji ulifanywa Shughuli za Kibiashara Nyajani: Hii shughuli inahusisha
ukilenga mita zote ili kupunguza hasara za kibiashara. Jumla ukaguzi wa mita, upimaji wa mita, usomaji wa mita unaolenga
ya mita 1,124,934 zilikaguliwa. kupunguza uvujaji wa kimaeneo. Ukaguzi unalenga akaunti
kubwa za umeme, SMEs na mita za kawaida katika feeders
Kwa kuongeza, Kampuni ilianzisha Kitengo cha kupambana
zilizo na hasara kubwa kwa kuzingatia wateja ambao hawa
na wizi wa umeme( Field Enforcement Unit) ili kuberesha
tumie umeme na majengo ya juu.
ukusanyaji mapato. Timu hiyo ilipewa jukumu la kufuatilia
malipo bora ya wateja na vile vile kutambua na kushughulikia Kuweka Mita za Smart kwa wateja Wote Wakubwa na
kutofautiana kwa malipo kwenye akaunti za wateja SMEs: Katika mwaka, tulinunua vifaa vya Miundombinu
zilizotambuliwa. Timu hiyo ilianza shughuli zake Nairobi ya kiwango cha juu kwa kuandaa utoaji wa teknolojia ya
na itapanuliwa kwa vitengo vyote vya kaunti katika mwaka upimaji wa kidigitali kwa zaidi ya bihashara ndongo ndogo
ujao wa fedha. (SMEs) 55,000 ili kuboresha ufanisi wa utozaji na kupunguza
hasara ya kibiashara. Kampuni pia inalenga kubadilisha mita
Jumla ya Sh milioni 607 zilipatikana chini ya shughuli za
zote kwa wateja wakubwa wa umeme na kuwawe kea mita
KYM na FEU. Shughuli zilizoongezeka za uwepo nyajani
za kidigitali.
zitaendelezwa mbele kwa ukusanyaji bora wa mapato.
Kwa kuongezea, Kampuni iliteua mameneja muhimu wa 4. Uthibiti wa Gharama
akaunti wakati wa mwaka kushughulikia ukusanyaji mapato Kampuni inazingatia kuthibiti gharama katika ngazi zote
kutoka kwa anuwai ya wateja pamoja na Wizara, Wakala za shughuli zetu ili kuboresha ufanisi wa biashara. Hizi ni
wa Serikali na Serikali za Kaunti. pamoja na fedha, ununuzi wa umeme, matumizi ya mtaji
na, gharama za usafirishaji na usambazaji.
3. Kupunguza Hasara za Mfumo
Mwaka huu, tulipunguza utekelezaji wa miradi ila kwa
Kuboresha ufanisi wa mfumo umepewa kipaumbele kwa
mipango muhimu tu ya ukarabati, kwa lengo la kuthibiti
kuwa hasara inayotokana na upotezaji wa mfumo inatua
matumizi ya mtaji. Kwa kuongezea, kudhibiti gharama za
wasiwasi. Kupungua kwa upotezaji wa mfumo utakuwa
usafirishaji na usambazaji, tulianzisha hatua za kudhibiti
na hathari chanya kwa mapato na uendelevu wa biashara.
gharama za wafanyikazi, gharama za ofisi, malipo ya muda
Kuangalia nyuma katika miaka ya hivi karibuni, upotezaji wa
wa ziada, mafunzo na matumizi mengine ya kawaida.
mfumo umeongezeka wakati huo huo na ukuaji wa haraka
wa mtandao wa umeme wa kampuni na idadi ya wateja. Kampuni ilianzisha hatua za kurekebisha deni letu la muda
mfupi kwa mkopo wa muda. Hii inakusudia kupunguza
Mtandao wa laini na umepanuka kutoka jumla ya 56,611km
shinikizo za mtiririko wa fedha na kupunguza riba inayolipwa.
hadi 84,681km katika miaka saba iliyopita. Mtandao wa
Kwa kuongezea, Kampuni ilianza mazungumzo na wafadhili
voltage ndogo pia umepanuka kutoka 73,594km hadi
na washirika wa maendeleo kurekebisha madeni ya kibiashara
243,207km kwa kipindi hicho. Kwa kuongezea, msingi wetu
yaliyopo.
wa wateja umeongezeka kutoka milioni 2.3 hadi milioni 7.6
katika kipindi hicho hicho. Baadaye, kutokana na mtandao
mpana na kuongezeka kwa wateja hasara kutokana na 5. Kuboresha Uzoefu wa Wateja
upotezaji wa mfumo umeongezeka kutoka 18.68% hadi Ili kukuza utamaduni unaozingatia mteja, tulianzisha utumiaji
23.46% katika kipindi cha miaka saba. Kwa hivyo hii ni fursa wa alama ya net promoter score (NPS) ambayo inapima utayari
ya kuboreshwa, lakini pia ni tishio kwa biashara yetu ikiwa wa wateja kupendekeza bidhaa au huduma za kampuni. NPS
haitafanyiwa kazi kwa haraka. pia inapima kuridhika kwa jumla kwa wateja na bidhaa au
huduma za kampuni na uaminifu wa wateja.
Tulianzisha miradi ya kuwezesha kupunguza upotezaji wa
mfumo, kama sehemu ya ramani yetu ya barabara ili kuongeza Katika uchunguzi wa hivi karibuni wa NPS, wateja wetu
ufanisi wa mfumo na biashara. Mipango hii inategemea walionyesha hitaji la Kampuni kuboresha maswala
kipimo sahihi cha hasara ili kuwezesha utumiaji wa rasilimali. yanayohusiana na malipo yasiyo sahihi, kukatika kwa umeme
kwa mara kwa mara, kujibu polepole simu za dharura na
Mradi wa Upimaji katika Mipaka: Mradi unajumuisha upimaji huduma ya wateja isiyoridhisha kwa kukosa kushughulikia
wa umeme kwa maeneo yetu ya biashara na kaunti. Baada malalamiko ya wateja. Hakika, tunakubali kuwa haya ni
ya kukamilisha mradi huo, tutaweza kupunguza maeneo maswala muhimu ambayo yanahitaji hatua za haraka. Katika
kwenye mfumo yanayo pata hasara kubwa na kuchukua azma yetu ya kushughulikia shida zilizoibuliwa, Kampuni
hatua zinazohitajika. Upimaji katika mpaka ya mikoa inatekeleza mipango mbali mbali inayolenga kutatua masuala
ulikamilishwa mwaka huu na mipango endelea kuanza haya ili kuboresha uzoefu wetu wa wateja.
upimaji wa mipaka ya Kaunti.
Kuimarisha Maeneo Yetu ya Kutangamana na Wateja: Kituo
Mradi wa Upimaji wa Line za Stima: Hadi sasa, jumla ya cha Mawasiliano cha Kitaifa cha Kampuni ni kituo cha neva
laini 1,184 kati ya 1,225 zimepimwa ili kuwezesha kuamua kinachopokea na kuelekeza maswali ya wateja na maoni
kiwango cha vitengo vya umeme uilivyotumwa kwa kila kwa timu za utendaji nyanjani. Kutambua jukumu muhimu
ambalo Kituo cha Mawasiliano cha Kitaifa kinachukua ndani ya mipaka yao ya kiutendaji zinaungwa mkono vizuri
katika kukuza uzoefu wa wateja, tunatekeleza mageuzi na zina vifaa vya kufanya kazi kwa ufanisi na kwa faida. Ili
muhimu kubadilisha kituo hiki muhimu cha mawasiliano kutekeleza muundo mpya, Kampuni ilijaza nafasi zote za
kati ya Kampuni na wateja. Marekebisho haya ni pamoja Wasimamizi wa Biashara wa Kaunti na wafanyikazi waliowekwa
na upanuzi na uwezeshaji wa miundombinu iliyopo, kutoa tena kwa sekta, kanda na maeneo ya usambazaji. Muundo
mafunzo kwa wafanyikazi wanao tangama na wajeja ili ulifanikiwa kutekelezwa katika kaunti za Nairobi na Kiambu
kutoa huduma bora kwa wateja. wakati mwaka huu kabla ya kupanuliwa kwa kaunti zingine.
Moduli za Huduma ya Kibinafsi: mwaka huu wa ukaguzi,
7. Hitimisho
tulizidua nambari mpya ya simu fupi nambari 97771 ili
Tuko kwenye dhamira ya kubadilisha Kenya Power kuwa
kurahisisha wateja kuwasiliana na Kampuni. Tulizindua pia
Kampuni yenye ufanisi na inayoheshimiwa, inayoaminiwa na
moduli mbili za huduma za kibinasi ambazo ni nambari ya
wateja kutoa huduma ya mfano, na kuthaminiwa na wanahisa
haraka * 977# na MyPower app to kutoa njia ya haraka na
kama ya uwekezaji mzuri. Katika suala hili, tunaanzisha
rahisi ambayo wateja hutangamana na Kampuni. Kupitia
mazingira bora ya biashara kupitia uboreshaji endelevu wa
majukwaa, wateja wetu sasa wanaweza kujitegemea kufanya
michakato, kujenga mtandao thabiti wa umeme, na kutumia
miamala anuwai ikiwa ni pamoja na malipo ya bili ya baada
teknolojia na suluhisho za ubunifu ili kukidhi mahitaji ya
ya kulipwa, ununuzi wa token za umeme na kuripoti matukio
wateja ya sasa na yanayojitokeza.
kati ya mengine.
Kwa kuongezea, kuziwezesha kaunti kama sehemu za
Kwa kuongezea, moduli za huduma za kibinafsi zinawezesha
biashara zenye uhuru-nusu kutaimarisha uwajibikaji katika
wateja kuwasilisha usomaji wao wa mita, kufanya maswali
shughuli zetu za biashara, kuongeza ufanisi na kubeleka
ya usawa wa bill zao, kuripoti malalamiko na kujiandikisha
huduma karibu na wateja wetu.
kwa huduma ya E-Bill. Hii imesaidia kupunguza makadirio
ya bili na kupunguza malalamiko ya wateja juu ya malipo. Tuna thamini wateja wetu wote na kuwahakikishia kujitolea
Kwa kuongezea, wateja wanaweza omba kuunganishiwa kwetu kuboresha huduma zetu na kutimiza matarajio yao.
umeme kutoka kwa lango lililozinduliwa hivi karibuni Natoa wito kwa wafanyikazi wetu, kuongeza bidii katika
kupitia tovuti yetu. kuwahudumia wateja wetu, wakiongozwa na wito wetu wa
ndani “Tunza Wateja, Kuza Biashara” ambao umewekwa
Katika kipindi kinachoangaliwa, tulifanya mipango kadhaa ya
kwa mkakati wetu wa mabadiliko ya utamaduni kupachika
kuwafikia wateja na kampeni za uhamasishaji kushughulikia
umakini wa mteja, kushinda msaada wa wadau na kukuza
maswala ya wateja na kuwaelimisha juu ya majukwaa ya
uaminifu wa chapa yetu tunapoweka biashara kwenye njia
huduma za kibinafsi zinazopatikana.
ya ukuaji katika siku zijazo za baadaye.
Kuimarisha Uaminifu wa Mifumo ya Huduma za Wateja:
Napenda kuishukuru Bodi ya Wakurugenzi kwa msaada wa
Kampuni imeweka Udhibiti wa Uendeshaji wa Mitandao
kimkakati na mwongozo.
(NOC), mfumo mpya wa kuchunguza miundombinu ya ICT
kwa masaa 24. Tangu usanikishaji, NOC imeboresha majibu Kwa wadau wetu wote, tunasema asante sana.
kwa makosa na matukio na hivyo kuongeza upatikanaji wa
mfumo kwa mifumo muhimu ya biashara kwa kuridhika
kwa wateja.
6. Kuboresha Utoaji wa Huduma katika Ngazi ya Kaunti

Mwaka huu, tulibadili utendakazi wetu katika counti ili kuzipa
nguvu kama sehemu za kibiashara kwa lengo la kuzifanya Bernard Ngugi
vituo vya faida na huduma karibu na wateja wetu. Hapo Mkurugenzi Mkuu na Afisa Mkuu Mtendaji
awali, uamuzi na ugawaji wa vyanzo vilifanywa kutoka ofisi
za mkoa, hali ambayo ilizuia ufanisi wa utendaji na uwajibikaji
wa mfanyakazi. Muundo mpya wa kaunti unakuza umiliki,
unasisitiza mawazo ya biashara na inaboresha uwepo wetu
wa nyanjani kwa kuboreshwa kwa utoaji wa huduma.
Muundo mpya wa kaunti umegawanywa katika sekta na
kanda kwa urahisi wa kusoma mita na ukusanyaji wa mapato.
Kaunti zinajumuishwa zaidi katika maeneo ya usambazaji
ili kurahisisha timu za usimamizi wa mtandao kufanya kazi
vizuri na kudumisha mtandao wa utoaji wa umeme bora
na wa kuaminika. Ofisi ya mkoa inahakikisha kaunti zilizo
CORPORATE GOVERNANCE REPORT
1. Composition and Appointment of the Board

The Code of Governance for State Corporations (Mwongozo) which the Company ascribes to requires a maximum of
nine Directors. In this regard, our current Board is composed of six Independent Non- Executive Directors including
the Chairman; two Non-Independent Directors representing The National Treasury and the Ministry of Energy; and one
Executive Director who is also the Managing Director and Chief Executive Officer. The constitution of our Board takes
into consideration diversity in gender, age, ethnicity and culture.
The appointment to Board is guided by Memorandum and Articles of Association of our Company. The Company’s Article
120 stipulates that at every Annual General Meeting (AGM), at most one third of the Board members retire by rotation and
are eligible for re-election based on first in first out basis. Whereas Article 123 indicates that if for any reason a vacancy
occurs in the Board, the Directors may appoint a person to fill in the vacancy temporarily until the next AGM when he or
she is expected to stand down but is eligible for election.
2. Board Commitment
We are committed to building a strong corporate governance system underpinned by ethically driven business structures,
procedures and processes. Good governance practice enables us to achieve our mandate, create shareholder value and
meet stakeholder expectations as we steer the Company towards sustainable growth.
We remain steadfast in complying with statutory and regulatory requirements as outlined in the Companies Act 2015, the
Capital Markets Authority’s Code of Corporate Governance Practices for Issuers of Securities to the Public 2015, Capital
Markets (Securities) (Public Offers, Listing and Disclosures) Regulations and the Code of Governance for State Corporations
among others.
Our operations are defined in the Board Charter which clearly outlines the roles, responsibilities and functions for the Board
members and its committees. We are also guided by the Company’s Memorandum and Articles of Association and Code
of Conduct which sets out rules that govern the conduct of individual Directors in order to enable the Board to operate
effectively in the best interests of the Company.
The Board is devoted to providing leadership that advocates for transparency, accountability, ethics and integrity as pillars
of good corporate governance. We will continue to strengthen our internal controls and enterprise risk management and
promote a culture of integrity to support the Company in achieving our strategic and financial objectives.
3. Responsibilities of the Board

The following are the key roles and responsibilities of the Board:
i. The stewardship of the Company and in discharging its obligations, it assumes responsibility for oversight, strategy,
risk management, compliance and control, stakeholder relations and timely and accurate disclosures.
ii. Establishing sound system of internal control for the Company.
iii. Overseeing the corporate governance framework.
iv. Adoption of strategic plans and policies; monitoring the operational performance; establishing policies and processes
that ensure integrity of the Company’s internal controls; and risk management.
v. Establishing clear roles and responsibilities in discharging its fiduciary and leadership functions.
vi. Ensuring that Management actively cultivates a culture of ethical conduct and sets the values to which the Company
will adhere.
vii. Ensuring that the strategies adopted promote the sustainability of the Company.
viii. Establishing policies and procedures for effective operations of the Company.
ix. Establishing appropriate staffing and remuneration policies for all employees as required.
x. Ensuring compliance with all applicable laws, regulations, governance codes, guidelines and regulations and
establish systems to effectively monitor and control compliance across the Company.
4. Current Board Committees
Audit Committee Corporate Governance Committee

Members Members
1. Sachen Gudka (Chair) 1. Caroline Kittony (Chair)
2. Caroline Kittony-Waiyaki 2. Abdulrazaq Ali
3. Beatrice Gathirwa 3. Isaac Kiva
4. Elizabeth Rogo 4. MD & CEO
Finance & Risk Committee Strategy & Innovation Committee

Members Members
1. Kairo Thuo (Chair) 1. Elizabeth Rogo (Chair)
2. Abdulrazaq Ali 2. Isaac Kiva
3. Beatrice Gathirwa 3. Kairo Thuo
4. MD & CEO 4. Sachen Gudka
5. MD & CEO
Technical Committee (Ad-hoc) Committee
Members
1. Abdulrazaq Ali (Chair)
2. Elizabeth Rogo
3. Beatrice Gathirwa
4. MD & CEO
CURRENT GOVERNANCE FRAMEWORK
OT OLDERS
ovides strategic direc

value sys the ness.
Corporate
Audit
Innovation Governance
COMMITTEE(Headed by MD & CEO)
Consider a ormance, monitors

perfo e es
to day operations of
GENERAL MANAGERS
(Reports to t e Mana n ﬃcer)

Business Strategy
Development
Sales
Legal, Regulatory Aﬀairs &
Network Management
Infrastructure
Commercial Services &

Company Secretary
Regional Coordination
Technology
Information Comm. &
& Research
Institute of Energy Studies
Supply Chain & Logistics
Administration
Human Resource &
Finance
Internal Audit
REGIONAL, COUNTY AND DEPARTMENTAL MANAGERS
(Coordinates diverse Company business functions)
5. Board Work Plan, Membership and Meetings
The Board recognizes that the development of a workplan with clearly defined annual goals is critical for effective
management and execution of Board agenda. The work plan details out scheduled meetings and agenda and is circulated
ahead of Board meetings.
During the year, the Board held 14 meetings to consider key issues relating to business performance, strategy and sustainability.
Board membership and meetings for the year ended 30th June 2020
Board Member Board Position 14 Meetings
Amb. (Eng.) Mahboub Mohamed Chairman 14/14
Mr. Henry Rotich Cabinet Secretary, The National Treasury -
Dr. Eng. Joseph Njoroge Principal Secretary, Ministry of Energy 1/1
Mr. Bernard Ngugi Managing Director & CEO (Joined in Oct. 2019) 9/9
Mr. Wilson Mugung’ei Member 13/14
Mr. Adil Khawaja Member 11/14
Mr. Kairo Thuo Member 13/14
Mrs. Brenda Eng’omo Member 13/14
Hon. Zipporah Kering Member 14/14
Eng. Isaac Kiva Alternate PS, Ministry of Energy 14/14
Mrs. Beatrice Gathirwa Alternate to CS, The National Treasury 12/14
Eng. Jared Othieno Ag. MD & CEO (Left in Oct.2019) 5/5
Note:
There are no inter-se relationships between our Board Members.
6. Board Evaluation
In order to improve on performance of the Board, we undertook annual Board evaluation assisted by the State Corporations
Advisory Committee (SCAC). The Board achieved a score of 95% and an action plan was developed focusing on areas
that require improvement. The assessment is aimed at improving members’ individual and collective performance for
continuous growth and sustainability of the Company.
7. Governance Audit
The Board conducted a Governance Audit during the year with the aim of ensuring that the Company complied with
relevant areas of corporate governance. The action points have been development and will be implemented in the current
financial year.
8. Insider Trading Policy

The Board is in the process of reviewing of insider trading policy and the same will be communicated to all employees of
the Company. The Board wish to report that there were no insider dealings for the year ended 30 June 2020.
9. Board Capacity Development

The Board of Directors prepare a training calendar where specific training needs are identified and scheduled. During the
year, Directors attended various capacity building programmes focusing on leadership, risk management, governance,
finance and other relevant areas.
10. Board Committees

There were four committees during the year established to enhance efficiency and effectiveness of the Board: Audit; Strategy
& Investment; Corporate Governance & Nomination; and Finance and Risk. An ad hoc committee may be constituted by
the Board to consider specific issues outside the mandate of existing committees.
The membership, responsibilities and attendance of Board committees in the year ended 30th June 2020 is summarised below:
Audit Committee
Responsibility Members Meetings (6)
Assist the Board in fulfilling its obligations and Chairman: Kairo Thuo 6/6
oversight responsibility for:
Members:
•• Financial and corporate performance,
Wilson Mugung’ei 4/6
•• Financial disclosures and accounting
Brenda Eng’omo 5/6
practices,
Beatrice Gathirwa 6/6
•• Internal controls and internal and external
audit processes. In attendance:
Bernard Ngugi (Joined in Oct. 2019) 2/2
Jared Othieno (Left in Oct. 2019) 4/4
Composition
The Committee comprises four non-executive Directors and regularly invites the Managing Director and CEO, and
General Manager Internal Audit to its meetings. External auditors are also invited to attend the meetings when necessary.
Strategy & Investment Committee

Considering and making Chairman: Wilson Mugung’ei 4/4

recommendations to the Board
Members:
regarding:
Zipporah Kering 4/4
•• Company’s strategic
direction. Isaac Kiva 4/4
•• Company’s investment Kairo Thuo 3/4
decisions.
Adil Khawaja 1/4
Composition
The Committee comprise 6 members and regularly invites General Managers in charge of Finance and Business Strategy
to its meetings.
Corporate Governance & Nomination Committee

Assist the Board in overseeing Human Resource Chairman: Brenda Eng’omo 4/4
issues in the Company and :
Members:
•• Evaluating the Board’s performance,
Adil Khawaja 4/4
•• Nominations to the Board,
Zipporah Kering 4/4
•• Recommending to the Board of directors
Isaac Kiva 3/4
who will serve in each standing committee,
•• Succession planning for the Chair, MD &
CEO and the senior management.
Composition
The Committee comprises 5 members and regularly invites the General Manager in charge of Human Resource and
Administration to the its meetings.
Finance & Risk Committee
To oversee: Chairman: Adil Khawaja 2/2

•• Financial performance and issues impacting Members:
on the financial structure of the Company.
Zipporah Kering 2/2
•• Enterprise Risk Management.
Isaac Kiva 2/2
Composition
The Committee comprises 5 members and regularly invites the General Manager Finance to its meetings to provide
information and clarifications.
11. Accountability and Audit

The Statement of Directors Responsibility is set out on page 56 and the Independent Auditors report is on page 57.
12. Directors’ Remuneration

Directors are entitled to sitting allowances for meetings attended as guided by government set limits for state corporations.
Directors’ fees are approved by shareholders during the Annual General Meeting and paid annually in accordance with
Government’s guidelines for all state corporations. Where applicable, Directors are entitled to a sitting allowance, lunch
allowance (to compensate for lunch, being provided), accommodation allowance and mileage reimbursement. The Chairman
of the Board is paid a monthly honorarium.
It is proposed that in the financial year ended 30th June 2020, each non-executive Director be paid a total of Shs 600,000
or on pro rata basis for period served. Details of Directors’ emoluments during the year are shown on page 53 in the
financial statements.
13. Directors’ Shareholding

None of the Directors owned more than 1 percent of the shareholding during the year as shown in the table below.
Director Shares
Joseph Njoroge 68,333
Bernard Ngugi 5,850
Wilson Mugung’ei 1,537
Total 75,720
14. Enterprise Risk Management

The Company has implemented an Enterprise Risk Management approach across the business in line with the Mwongozo
Code and ISO 31000, aimed at managing risks that impact the achievement of its strategic objectives. Top-level accountability
rests with the Board of Directors and Management who, in their roles, maintain oversight of the corporate risk profile.
The respective functional heads are tasked with embedding the risk management process in their respective operations.
During the year, the key areas of exposure that required immediate interventions to ensure the going concern of the
Company are highlighted as follows:
Financial Risks: Kenya experienced an economic down turn across most sectors in the year ended, mostly fueled by the
far-reaching impacts of the WHO-declared Covid-19 Pandemic. These effects, coupled with enhanced reporting and
provision standards, have adversely reverberated across the Company’s financial risks and performance indicators. The
outlook indicates slow economic recovery in the near-to-midterm thus the Company expects to continue experiencing
these adverse impacts despite the ongoing mitigations to stem the same.
Compliance (Legal & Regulatory) Risks: Regulations in support of the Energy Act 2019 are also expected to be finalized in
the near-to-midterm. The Company is particularly cognisant of the ‘Reliability, Quality of Supply and Quality of Service
Regulations’ which will, inter alia, stipulate fines and compensation for defaults in supply or service. There is also a likelihood
of an increase in litigation attributed to by public liability arising from billings, trespass and public safety.
Sovereign/Political Risks: As the country draws closer to the next general elections, the business environment is likely to
be affected since the product we serve relates directly to the social well-being of the general public. Electricity access is
regularly quoted as a political milestone; thus it is expected that there will be significant push towards realisation of this goal.
Operational Risks: Electricity theft and illegal connections continue to feature on the Company’s risk profile as evidenced by
increased system (commercial) losses. Additional resources and campaigns have been deployed to mitigate this exposure.
Implementation of additional initiatives is required to sustain the gains made.
Emerging Risks: Self-generation and perceived high cost of electricity have potential to reduce energy uptake from the grid
in the backdrop of increasing national generation capacity. This can affect the Company’s market-share and electricity.
Company Risk Web

The risk interconnection map shows the top 10 risks the Company faced during the year. It indicates the impact, likelihood,
and their respective interconnections. The risk rating is represented by the size of the circular node, the risk severity by the
respective node shading and the degree of correlation by the thickness of interconnecting lines.
Risk Web
Strategic
Competition
Technology & Innovation
Financial
Demand
Integrity
Human Resource
Information Security
Compliance
Sovereign/Political
15. Internal Controls

The Company has a policy to maintain an Internal Audit function that undertakes Internal Audit work throughout the
Company. The Internal Audit function offers independent, objective assurance and consulting services designed to add
value and improve the Company’s operations. It helps accomplish our objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control and governance process. This is with the
aim to enhance and protect the organizational value by providing risk-based and objective assurance, advice and insight.
16. Ethics and Code of Conduct

The Board, Management and staff are required to conduct themselves with Integrity and professionalism in accordance
with the Company’s Code of Conduct and Ethics. The Code defines our ethical standards and holds us accountable for our
business conduct. It is a resource for helping us to align our conduct and practices with our values. This is key in ensuring
that we do the right thing and are accountable at all times, while adhering to our standards and principles as we interact
with customers, communities and other stakeholders.
During the year under review, the Company continued to entrench a strong ethical conduct through training and sensitisation
of staff, corruption risk assessments and enforcement of prevention measures.
In addition, the Company has put in place various mechanisms for receiving complaints and making follow-ups on allegations
and cases of unethical conduct. Objective analysis of reported cases is done and appropriate action instituted to control
and mitigate the risk. The mobile application and short code *977# are viable instruments in helping customers and other
stakeholders to navigate the challenges including staff identifications and misconduct among other issues.
17. Shareholding Structure

The Company complies with the rules and regulations of the Capital Market Authority and the principles of disclosure and
transparency as provided under Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, Nairobi
Securities Exchange Listing Rules and the Companies Act 2015.
The top 20 major shareholders as at 30th June 2020 were as follows:

Ordinary 4% Pref. 7% Pref.
(Nominal (Nominal (Nominal
No. Name of Shareholder Total %
Value Shs. Value Shs. Value Shs.
2.50 Each) 20/= Each) 20/= Each)
1
THE NATIONAL TREASURY 977,641,695 656,808 193,531 978,492,034 50.086
2 STANDARD CHARTERED
32,518,589 - - 32,518,589 1.665
NOMINEES RESD A/C KE11450
24,076,800 - - 24,076,800 1.232
NOMINEES NON-RESD A/C KE11794
4 KENYA COMMERCIAL BANK
22,887,288 - - 22,887,288 1.172
NOMINEES LIMITED A/C 915B
20,959,975 - - 20,959,975 1.073
NOMINEES NON-RESD. A/C KE9053
6 THE JUBILEE INSURANCE
20,315,096 59,828 17,160 20,392,084 1.044
COMPANY OF KENYA LIMITED
19,250,681 - - 19,250,681 0.985
8
SURESH NARAN RATNA VARSANI 17,221,225 - - 17,221,225 0.882
9 NARAN KHIMJI AND VIRJI KHIMJI
17,080,964 - - 17,080,964 0.874
HIRANI
10
NIC CUSTODIAL SERVICES A/C 245 16,000,000 - - 16,000,000 0.819
15,333,260 - - 15,333,260 0.785
NOMINEES LIMITED A/C 915A
12 MAHENDRA KUMAR KHETSHI
13,458,000 - - 13,458,000 0.689
SHAH
13 STANBIC NOMINEES LIMITED A/C
12,400,226 - - 12,400,226 0.635
R5551484
14 STANBIC NOMINEES LTD A/C
10,954,012 - - 10,954,012 0.561
NR1030682
15 RAMABEN SUMANTRAI
PURSOTTAM PATEL & SUMANTRAI 10,397,300 - - 10,397,300 0.532
PURSOTTAM MANGALBHAI PATEL
16 STANDARD CHARTERED KENYA
8,920,415 - - 8,920,415 0.457
NOMINEES LTD A/C KE002333
8,551,279 - - 8,551,279 0.438
18
NIC CUSTODIAL SERVICES A/C 077 8,273,199 - - 8,273,199 0.423
19
JOHN NJUGUNA NGUGI 7,987,800 - - 7,987,800 0.409
7,380,954 - - 7,380,954 0.378
NOMINEES NON-RESID A/C 9342
Ordinary 4% Pref. 7% Pref.
(Nominal (Nominal (Nominal
No. Name of Shareholder Total %
Value Shs. Value Shs. Value Shs.
2.50 Each) 20/= Each) 20/= Each)
SUB - TOTAL
1,271,608,758 716,636 210,691 1,272,536,085 65.137
OTHER SHAREHOLDERS
679,858,287 1,083,364 139,309 681,080,960 34.863
TOTAL ISSUED SHARES

1,951,467,045 1,800,000 350,000 1,953,617,045 100.00
Shares distribution of Ordinary Shareholders as at 30th June 2020
Range No. of Shareholders Shares
<1,000 14,463 4,502,564

1001–10,000 11,142 36,418,077
10,001–50,000 3,039 66,172,012
50,001–100,000 616 44,145,848
Over 100,000 934 1,800,228,544
Total 30,194 1,951,467,045
Shares distribution of 4 percent Preference Shareholders as at 30th June 2020
<1,000 362 64,209

1001–10,000 57 152,792
10,001–50,000 13 327,184
50,001–100,000 2 133,564
Over 100,000 3 1,122,251
Total 437 1,800,000
Shares distribution of 7 percent Preference Shareholders as at 30th June 2020
<1,000 81 21,862
1001–10,000 15 44,141
10,001–50,000 3 86,432
50,001–100,000 1 57,617
Over 100,000 1 139,948
Total 101 350,000
Vivienne Yeda, OGW

Chairman, Board of Directors
RIPOTI YA MAONGOZI YA KAPUNI
1. Muundo na Uteuzi wa Bodi
Kanuni za Utawala kwa Mashirika ya Serikali (Mwongozo) ambazo Kampuni linazingatia inahitaji upeo wa Wakurugenzi
tisa. Katika suala hili, Bodi yetu ya sasa Wakurugenzi sita Wasio Watendaji linajumuisha ikiwa ni pamoja na Mwenyekiti;
Wakurugenzi wawili wasio wa Kujitegemea wanaowakilisha Hazina ya Kitaifa na Wizara ya Nishati; na Mkurugenzi
Mtendaji mmoja ambaye pia ni Mkurugenzi Mkuu na Afisa Mtendaji Mkuu. Katiba ya Bodi yetu inazingatia utofauti katika
jinsia, umri, kabila na utamaduni.
Uteuzi wa Bodi unaongozwa na Mkataba na Nakala za Chama cha Kampuni yetu. Kifungu cha 120 cha Kampuni kinasema
kwamba katika kila Mkutano Mkuu wa Mwaka (AGM), karibu theluthi moja ya wajumbe wa Bodi wanastaafu kwa kuzunguka
na wanastahili kuchaguliwa. Ingawa Kifungu cha 123 kinathibitisha kwamba ikiwa kwa sababu yoyote nafasi wazi katika
Bodi, Wakurugenzi wanaweza kuteua mtu kujaza nafasi hiyo kwa muda hadi Mkutano Mkuu ujao wakati atatarajiwa
kujiuzulu lakini ako huru kuchaguuliwa tena.
2. Kujitolea kwa Bodi

Tumejitolea kujenga mfumo thabiti wa utawala wa ushirika unaoungwa mkono na miundo ya biashara inayoendeshwa
kimaadili, taratibu na michakato. Utaratibu mzuri wa utawala unatuwezesha kufikia agizo letu, kuunda thamani ya wanahisa
na kukidhi matarajio ya wadau tu kuwezesha Kampuni kukuza ukuaji endelevu.
Tuko thabiti kwa kufuata kanuni za za kisheria na kisheria kama ilivyoainishwa katika Sheria ya Makampuni ya 2015, Kanuni
za Mamlaka ya Masoko ya Mitaji ya Utawala wa Kampuni kwa Watoaji wa Dhamana kwa Umma 2015, Masoko ya Mitaji
(Usalama) (Ofa za Umma, Orodha na Utangazaji) Kanuni na sheria za Utawala kwa Mashirika ya Serikali kati ya zingine.
Shughuli zetu zimeainishwa katika Hati ya Bodi ambayo inaelezea wazi majukumu, wafilo kwa wajumbe wa Bodi na kamati
zake. Tunaongozwa pia na Mkataba wa Kampuni na Nakala za Chama na Kanuni za Maadili ambazo zinaweka sheria
zinazosimamia mwenendo wa kila mkurugenzi ili kuiwezesha Bodi kufanya kazi kwa ufanisi kwa masilahi bora ya Kampuni.
Bodi imejitolea kutoa uongozi unaotetea uwazi, uwajibikaji, maadili na uadilifu kama nguzo za utawala bora wa kampuni.
Tutaendelea kuimarisha udhibiti wetu wa ndani na udhibiti wa hatari za kibiashara na kukuza utamaduni wa uadilifu
kusaidia Kampuni katika kufanikisha mkakati wetu, malengo ya kifedha.
3. Wajibu wa Bodi
Yafuatayo ndio majukumu muhimu ya Bodi:
i. Usimamizi wa Kampuni na katika kutekeleza majukumu yake, inachukua jukumu la usimamizi, mkakati, udhibiti
wa hatari, kibiarasha na kudhibiti, uhusiano wa wadau na kutua taarfa sahihi za kampuni.
ii. Kuanzisha mfumo sahini wa udhibiti wa ndani katika Kampuni.
iii. Kusimamia mfumo wa utawala wa ushirika.
iv. Kupitishwa kwa mipango mkakati na sera; kufuatilia utendaji wa kazi; kuanzisha sera na michakato ambayo
inahakikisha uadilifu wa udhibiti wa ndani uwajibikaji wa kampuni; na udhibili wa hatari.
v. Kuanzisha majukumu wazi na majukumu katika kutekeleza majukumu yake na uongozi.
vi. Kuhakikisha kuwa usimamizi unakuza kikamilifu utamaduni wa maadili na unaweka maadili ambayo Kampuni
itazingatia.
vii. Kuhakikisha kuwa mikakati iliyopitishwa inakuza uendelevu wa Kampuni.
viii. Kuanzisha sera na taratibu za utendaji mzuri wa Kampuni.
ix. Kuanzisha sera zinazofaa za wafanyikazi na malipo kwa wafanyikazi wote kama inavyotakiwa.
x. Kuhakikisha kufuata sheria zote zinazotumika, kanuni za utawala, miongozo na kuanzisha mifumo ya kusimamia
na kudhibiti ufanisi katika Kampuni.
4. Mpango Kazi wa Bodi, Uanachama na Mikutano
Bodi inatambua kuwa maendeleo ya mpango wa kazi na malengo yaliyofafanuliwa wazi ya kila mwaka ni muhimu kwa
usimamizi mzuri na utekelezaji wa ajenda za Bodi. Mpango wa kazi unafafanua mikutano na ajenda iliyopangwa na
inasambazwa kabla ya mikutano ya Bodi.
Mwaka huu, Bodi ilifanya mikutano 14 kuzingatia maswala muhimu yanayohusiana na utendaji wa biashara, mkakati na
uendelevu.
Uanachama wa bodi na mikutano kwa mwaka ulioishia 30 Juni 2020
Wajumbe wa bodi Nafasi katika bodi Mikutano 14
Balozi. (Mhandisi.) Mahboub Mohamed Mwenyekiti 14/14
Bw. Henry Rotich Waziri, Wizara ya Fedha -
Dkt. Mhandishi. Joseph Njoroge Katibu mkuu, wizara ya kawi 1/1
Mkurugenzi mkuu & mkurugenzi mtendaji

Bw. Bernard Ngugi 9/9
(alijiunga Oct.2019)
Bw. Wilson Mugung’ei Mjumbe 13/14
Bw. Adil Khawaja Mjumbe 11/14
Bw. Kairo Thuo Mjumbe 13/14
BI. Brenda Eng’omo Mjumbe 13/14
Mweshimiwa. Zipporah Kering Mjumbe 14/14
Mhandisi. Isaac Kiva Katibu, Wizara ya Kawi 14/14
Bi. Beatrice Gathirwa Mwakilishi wa Waziri wa Fedha 12/14
Kaimu mkurugenzi mkuu na mkurugunzi mtendaji

Mhandisi. Jared Othieno 5/5
(aliondoka Oct.2019)
Kumbuka:
Hakuna uhusiano baina ya watu kati ya Wajumbe wa Bodi yetu.
5. Tathmini ya Bodi
Ili kuboresha utendaji wa Bodi, tulifanya tathmini ya kila mwaka ya Bodi ikisaidiwa na Kamati ya Ushauri ya Mashirika ya
Serikali (SCAC). Bodi ilipata alama ya 95% na mpango wa utekelezaji ulibuniwa kila ukizingatia maeneo ambayo yanahitaji
kuboreshwa. Tathmini hiyo inakusudia kuboresha utendaji wa mtu mmoja mmoja na wa umoja kwa ukuaji endelevu na
kuimanka kwa Kampuni.
6. Ukaguzi wa Utawala
Bodi ilifanya Ukaguzi wa Utawala wakati wa mwaka kwa lengo la kuhakikisha kuwa Kampuni inatii maeneo husika ya
utawala wa ushirika. Sehemu za utekelezaji zimekuwa maendeleo na zitatekelezwa katika mwaka wa fedha wa sasa.
7. Sera ya Biashara ya ndani

Bodi iko katika mchakato wa kukagua sera ya biashara ya ndani na hiyo itafahamishwa kwa wafanyikazi wote wa Kampuni.
Bodi inataka kuripoti kwamba hakukuwa na kiizi wandani kwa mwaka ulioishia 30 Juni 2020.
8. Ukuzaji wa Uwezo wa Bodi

Bodi ya Wakurugenzi huandaa kalenda ya mafunzo ambapo mahitaji maalum ya mafunzo yanatambuliwa na kupangwa.
mwaka, Wakurugenzi walihudhuria programu anuwai za kuwajengea uwezo zinazozingatia uongozi, udhibitiwa hatari,
utawala, fedha na maeneo mengine husika.
9. Kamati za Bodi
Kulikuwa na kamati nne wakati wa mwaka iliyoundwa ili kuongeza ufanisi na mambo utendaji bora wa Bodi: Ukaguzi;
Mkakati na Uwekezaji; Utawala wa Kampuni na Uteuzi; na Fedha na Hatari. Kamati ya muda inaweza kuundwa na Bodi
ili kuzingatia masuala maalum nje ya mamlaka ya kamati zilizopo. Uanachama, majukumu na mahudhurio ya kamati za
Bodi katika mwaka ulioishia 30 Juni 2020 imefupishwa hapa chini:
Ukaguzi
Majukumu Bodi Mikutano (6)
Kusaidia Bodi kutimiza majukumu yake Mwenyekiti: Kairo Thuo 6/6

na jukumu la usimamizi kwa:
Wanachama:
• Utendaji wa kifedha na ushirika,
Wilson Mugung’ei 4/6
• Utoaji wa fedha na mazoea ya uhasibu,
Brenda Eng’omo 5/6
• Udhibiti wa ndani na michakato ya
ukaguzi wa ndani na nje.
Kuhudhuria:
Bernard Ngugi (Alijiunga Oktoba 2019) 2/2
Jared Othieno (Kushoto mnamo Oktoba 2019) 4/4
Muundo
Kamati inajumuisha Wakurugenzi wanne wasio watendaji na hualika mara kwa mara Mkurugenzi Mtendaji na Meneja
Mkuu wa Ukaguzi wa ndani wa Mikutano yake. Wakaguzi kwa nje pia wanaalikwa kuhudhuria mikutano inapohitajika.
Mkakati & Kamati ya Uwekezaji

Kuzingatia na kutoa mapendekezo kwa Mwenyekiti: Wilson Mugung’ei 4/4
Bodi kuhusu:
Wanachama:
• Mwelekeo wa kimkakati wa Kampuni
Zipporah Kering 4/4
• Maamuzi ya uwekezaji wa Kampuni
Isaac Kiva 4/4
Kairo Thuo 3/4
Adil Khawaja 1/4
Bernard Ngugi (Alijiunga Okt. 2019) 3/3
Jared Othieno(aliondoka Okt. 2019) 1/1
Muundo
Kamati inajumuisha wanachama 6 na huwaalika mara kwa mara Wasimamizi Wakuu wanaosimamia Mkakati wa Fedha
na Biashara kwenye mikutano yake.
Kamati ya Utawala na Uteuzi
Kusaidia Bodi katika Kusimamia masuala Mwenyekiti: Brenda Eng’omo 4/4

ya Rasilimali Watu katika Kampuni:
Wanachama:
• Kutathmini utendaji wa Bodi,
Adil Khawaja 4/4
• Uteuzi kwa Bodi,
Zipporah Kering 4/4
• Kupendekeza kwa Bodi ya wakurugenzi
Isaac Kiva 3/4
ambao watahudumu katika kila kamati
ya kudumu, Bernard Ngugi (Alijiunga Oktoba 2019) 3/3
• Kupanga mpangilio wa Mwenyekiti, MD
& Mkurugenzi Mtendaji na uongozi wa juu.
Muundo
Kamati inajumuisha wanachama 5 na hualika mara kwa mara Meneja Mkuu anayesimamia Rasilimali Watu na Utawala
kwenye mikutano yake.
Kamati ya Fedha na Hatari
Kusimamia Mwenyekiti: Adil Khawaja 2/2

• Utendaji wa kifedha na masuala Wanachama:
yanayoathiri muundo wa kifedha wa
Zipporah Kering 2/2
Kampuni
Isaac Kiva 2/2
Usimamizi wa Hatari za Kibiashara.
Bernard Ngugi (Alijiunga Oktoba 2019) 1/1
Jared Othieno (Aliondoka Oktoba 2019) 1/1
Muundo
Kamati inajumuisha wajumbe 5 na mara kwa mara hualika Meneja Mkuu wa Fedha kwenye mikutano yake ili kutoa
habari na ufafanuzi.
10. Uwajibikaji na Ukaguzi

Taarifa ya Wajibu wa Wakurugenzi imewekwa kwenye ukurasa 56, na ripoti ya Wakaguzi huru iko kwenye ukurasa 57 .
11. Mshahara wa Wakurugenzi

Wakurugenzi wanastahili kupata posho za mikutano waliohudhuriwa kulinga serikali na urotibu wa kwa mashirika ya
serikali. Ada ya wakurugenzi inakubaliwa na wanahisa wakati wa Mkutano Mkuu wa Mwaka na hulipwa kila mwaka
kulingana na miongozo ya Serikali kwa mashirika yote ya serikali. Inapoweza kutumika, Wakurugenzi wanastahiki posho
ya kukaa, posho ya chakula cha mchana (kufidia chakula cha mchana kinachotolewa), posho ya malazi na malipo ya
mileage. Mwenyekiti wa Bodi analipwa heshima ya kila mwezi.
Inapendekezwa kuwa katika mwaka wa kifedha uliomalizika tarehe 30 Juni 2020, kila Mkurugenzi asiye mtendaji alipwe
jumla ya Sh 600,000 au kwa msingi wa pro rata kwa muda uliotumika. Maelezo ya fidia za Wakurugenzi wakati wa mwaka
imeonyeshwa kwenye ukurasa 53 katika taarifa za kifedha.
12. Hisa ya Wakurugenzi

Hakuna Wakurugenzi aliyemiliki zaidi ya asilimia 1 ya hisa katika mwaka kama inavyoonyeshwa kwenye jedwali hapa chini.
Hisa za Mkurugenzi
Mkurugenzi Hisa
Joseph Njoroge 68,333
Bernard Ngugi 5,850
Wilson Mugung’ei 1,537
jumla 75,720
13. Usimamizi wa Hatari za Biashara

Kampuni imetekeleza mbinu ya Usimamizi wa Hatari katika biashara yote kulingana na Mwongozo Code na ISO 31000,
inayolenga kudhibiti hatari zinazoathiri kufanikiwa kwa malengo yake ya kimkakati. Uwajibikaji wa kiwango cha juu uko
mikono mwa Bodi ya Wakurugenzi na usimamiaji ambao, katika majukumu yao, wanasimamia usimamizi wa wasifu wa
hatari ya ushirika. Vichwa vya kazi husika vina jukumu la kupachika mchakato wa kudhibiti hatari katika shughuli zao.
Katika mwaka, maeneo muhimu ya mfiduo ambayo yanahitaji hatua za haraka ili kuhakikisha wasiwasi wa Kampuni
unaangaziwa kama ifuatavyo:
Hatari za kifedha: Kenya ilipata kushuka kwa uchumi katika sekta nyingi katika mwaka uliomalizika, ikichochewa sana
na athari kubwa za Janga la Covid-19 lililotangazwa na WHO. Athari hizi, pamoja na viwango vya utoaji wa taarifa
vilivyoimarishwa, zimeripotiwa vibaya katika hatari za kifedha za Kampuni na viashiria vya utendaji. Mtazamo unaonyesha
kupona polepole kwa uchumi katika kipindi cha karibu na katikati kwa hivyo Kampuni inatarajia kuendelea kupata athari
hizi mbaya licha ya uwepo mipango za kudhibiti hivi karibuni.
Utekelezaji (Sheria na Udhibiti) Hatari: Kanuni za kuunga mkono Sheria ya Nishati ya 2019 pia zinatarajiwa kukamilika
hivi karibuni. Kampuni inatambua haswa Sheria ya ‘Uaminifu, Ubora wa Ugavi na Ubora wa Huduma’ ambayo, pamoja
na mambo mengine, itaainisha faini na fidia ya kasoro ya usambazaji au huduma. Kuna uwezekano pia wa kuongezeka
kwa madai yanayosababishwa na dhima ya umma inayotokana na malipo, makosa na usalama wa umma.
Mtawala /Kisiasa: Wakati nchi inakaribia uchaguzi mkuu ujao, mazingira ya biashara yanaweza kuathiriwa kwani bidhaa
tunayohudumia inahusiana moja kwa moja na ustawi wa kijamii wa umma kwa jumla. Upataji wa umeme unanukuliwa
mara kwa mara kama hatua ya kisiasa; kwa hivyo inatarajiwa kuwa kutakuwa na msukumo mkubwa kuelekea utekelezwaji
wa lengo hili.
Hatari za Uendeshaji: Wizi wa umeme na unganisho haramu vinaendelea kuonekana kwenye wasifu wa Kampuni kama
inavyothibitishwa na kuongezeka kwa upotezaji wa mfumo (wa kibiashara). Rasilimali na kampeni za ziada zimepelekwa
kupunguza mfiduo huu. Utekelezaji wa mipango ya ziada inahitajika ili kupata mafanikio yaliyopatikana.
Hatari zinazojitokeza: Kuzaa kibinafsi na kuona gharama kubwa za umeme zina uwezo wa kupunguza matumizi ya nishati
kutoka gridi ya kuongezeka kwa uwezo wa kizazi cha kitaifa. Hii inaweza kuathiri soko-hisa na umeme wa Kampuni.
Wavu wa Hatari ya Kampuni
Ramani ya unganisho la hatari inaonyesha hatari 10 za juu ambazo Kampuni ilikabiliwa na mwaka. Inaonyesha athari,
uwezekano, na unganisho lao. Ukadiriaji wa hatari unawakilishwa na saizi ya node ya mviringo, ukali wa hatari na kivuli
cha nodi husika na kiwango cha uwiano na unene wa mistari inayounganisha.
Wavu wa hatari
Strategic
Competition
Technology & Innovation
Financial
Demand
Integrity
Human Resource
Information Security
Compliance
Sovereign/Political
14. Udhibiti wa ndani

Kampuni ina sera ya kudumisha kazi ya Ukaguzi wa ndani ambao hufanya kazi ya Ukaguzi wa ndani katika Kampuni
yote. Kazi ya Ukaguzi wa ndani hutoa huduma huru, dhamana ya dhumuni na huduma za ushauri iliyoundwa ili kuongeza
thamani na kuboresha shughuli za Kampuni. Inasaidia kutimiza malengo yetu kwa kuleta utaratibu, utaratibu wenye
nidhamu wa kutathmini na kuboresha ufanisi wa usimamizi wa hatari, udhibiti na mchakato wa utawala. Hii ni kwa lengo
la kuongeza na kulinda thamani ya shirika kwa kutoa uhakikisho wa msingi wa hatari na dhamira, ushauri na ufahamu.
15. Maadili na kanuni za kampuni

Bodi, idasimamizi na wafanyikazi wanahitajika kufanya kazi kwa Uadilifu na weledi kulingana na Kanuni za Maadili na
Maadili ya Kampuni. Kanuni hufafanua viwango vyetu vya maadili na inatuwajibisha kwa mwenendo wetu wa biashara.
Ni rasilimali ya kutusaidia kuoanisha mwenendo na mazoea yetu na maadili yetu. Hii ni muhimu katika kuhakikisha kuwa
tunafanya jambo linalofaa na tunawajibika wakati wote, huku tukizingatia viwango na kanuni zetu tunaposhirikiana na
wateja, jamii na wadau wengine.
Katika mwaka ulioangaziwa, Kampuni iliendelea kusisitiza maadili thabiti kupitia mafunzo na uhamasishaji wa wafanyikazi,
tathmini ya hatari za rushwa na utekelezaji wa hatua za kuzuia.
Kwa kuongezea, Kampuni imeweka utaratibu anuwai wa kupokea malalamiko na kufanya ufuatiliaji juu ya madai na kesi
za mwenendo mbaya. Uchambuzi wa malengo ya kesi zilizoripotiwa hufanyika na hatua sahihi zinawekwa kudhibiti
na kupunguza hatari. Matumizi ya rununu na nambari fupi * 977# ni nyenzo zinazofaa katika kusaidia wateja na wadau
wengine kushughulikia changamoto hizo ikiwa ni pamoja na utambuzi wa wafanyikazi na utovu wa nidhamu kati ya
maswala mengine.
16. Muundo wa Hisa

Kampuni inatii sheria na kanuni za Mamlaka ya Soko la Mitaji na kanuni za ufichuzi na uwazi kama inavyotolewa chini
ya Masoko ya Mitaji (Dhamana) (Kanuni za Utoaji wa Hesabu za umma, Orodha na Utangazaji), Sheria za Orodha ya
Kubadilishana Usalama wa Nairobi na Sheria ya Kampuni ya 2015.
Wanahisa wakuu 20 bora mnamo 30 Juni 2020 walikuwa kama ifuatavyo:
Kawaida 7%
4% pendwa
(Thamani ya pendwa.
No. Jina la mwanahisa ( Shs. 20/= Jumla Asilimia
Jina Shs. 2.50 ( Shs. 20/=
kila moja) kila moja)
kila moja)
1
THE NATIONAL TREASURY 977,641,695 656,808 193,531 978,492,034 50.086
2
STANDARD CHARTERED
32,518,589 - - 32,518,589 1.665
NOMINEES NON-RESD A/C 24,076,800 - - 24,076,800 1.232
KE11794
22,887,288 - - 22,887,288 1.172
NOMINEES NON-RESD. A/C 20,959,975 - - 20,959,975 1.073
KE9053
6 THE JUBILEE INSURANCE
COMPANY OF KENYA 20,315,096 59,828 17,160 20,392,084 1.044
LIMITED
19,250,681 - - 19,250,681 0.985
8 SURESH NARAN RATNA
17,221,225 - - 17,221,225 0.882
VARSANI
9 NARAN KHIMJI AND VIRJI
17,080,964 - - 17,080,964 0.874
KHIMJI HIRANI
10 NIC CUSTODIAL SERVICES
16,000,000 - - 16,000,000 0.819
A/C 245
11
KENYA COMMERCIAL BANK
15,333,260 - - 15,333,260 0.785
NOMINEES LIMITED A/C 915A
12 MAHENDRA KUMAR
13,458,000 - - 13,458,000 0.689
KHETSHI SHAH
13 STANBIC NOMINEES LIMITED
12,400,226 - - 12,400,226 0.635
A/C R5551484
14 STANBIC NOMINEES LTD A/C
10,954,012 - - 10,954,012 0.561
NR1030682
15
RAMABEN SUMANTRAI
PURSOTTAM PATEL &
10,397,300 - - 10,397,300 0.532
SUMANTRAI PURSOTTAM
MANGALBHAI PATEL
Kawaida 7%
4% pendwa
(Thamani ya pendwa.
No. Jina la mwanahisa ( Shs. 20/= Jumla Asilimia
Jina Shs. 2.50 ( Shs. 20/=
kila moja) kila moja)
kila moja)
KENYA NOMINEES LTD A/C 8,920,415 - - 8,920,415 0.457
KE002333
8,551,279 - - 8,551,279 0.438
18 NIC CUSTODIAL SERVICES
8,273,199 - - 8,273,199 0.423
A/C 077
19 JOHN NJUGUNA NGUGI 7,987,800 - - 7,987,800 0.409
NOMINEES NON-RESID A/C 7,380,954 - - 7,380,954 0.378
9342
Idadi ndogo
716,636 210,691 1,272,536,085 65.137
1,271,608,758
Wanahisa wengine 679,858,287 1,083,364 139,309 681,080,960 34.863
Jumla ya hisa zilizotolewa
1,951,467,045 1,800,000 350,000 1,953,617,045 100.00
Kufumushiwa kwa Wanahisa wa Kawaida tarehe 30 Juni 2020
Kiwango Idadi ya wanahisa Hisa
Chini ya 1,000 14,463 4,502,564
1001–10,000 11,142 36,418,077
10,001–50,000 3,039 66,172,012
50,001–100,000 616 44,145,848
Zaidi ya 100,000 934 1,800,228,544
Jumla 30,194 1,951,467,045
Kufumushiwa kwa Wanahisa wa asilimia 4 mnamo 30 Juni 2020
Chini ya 1,000 362 64,209
1001–10,000 57 152,792
10,001–50,000 13 327,184
50,001–100,000 2 133,564
Zaidi ya100,000 3 1,122,251
Jumla 437 1,800,000
Kufumushiwa kwa Wanahisa wa asilimia 7 mnamo 30 Juni 2020
Chini ya 1,000 81 21,862
1001–10,000 15 44,141
10,001–50,000 3 86,432
50,001–100,000 1 57,617
Zaidi ya 100,000 1 139,948
Jumla 101 350,000
Vivienne Yeda, OGW

Mwenyekiti, Bodi ya Wakurugenzi
BUSINESS SUSTAINABILITY
The global health crisis experienced with the outbreak of COVID-19 pandemic brought about the need for organisational
agility in response to adverse challenges that can threaten business continuity. The pandemic is a clear demonstration of
why sustainability and preparedness for any emerging risks should be at the fore of every business.
Our sustainability strategy entails managing and coordinating environmental, social and financial aspects of our business.
This strategies aims at ensuring that we are a responsible, ethical, financially stable and progressive Company. We continued
to implement measures geared towards ensuring sustainability of our business along the three strategic pillars.
1. Environmental Sustainability
In the process of transmitting and distributing electricity to our customers, our power network traverses through diverse
environmental ecosystems, forests and grasslands which pave way for the electricity infrastructure. In addition, our business
depends on the environment in various ways including wooden poles for power distribution and water for hydro power
generation. The Company therefore promotes programmes that help conserve the environment.
Tree planting
During the year, we planted 20,000 seedlings on Company-owned land throughout the country and an additional 10,000
seedlings were planted in South Nyanza region in partnership with the Kenya Forest Service.
Use of concrete poles

To minimize effects on the environment, the Company has in the last seven years incrementally used concrete poles in
place of wooden poles for power line construction. A total of 34,455 concrete poles were procured during the year. The
procured number of concrete poles will enable us save equivalent number of trees. Concrete poles are more durable and
complement wooden poles in expansion of the network and connecting more customers. This helps to reduce deforestation
and maintains forest cover hence mitigating climate change.
Solar PV for off-grid stations

The Company continued with the implementation of hybridization project for existing off-grid diesel generation plants
through introduction of solar photovoltaic (PV) generation to reduce on thermal power in the energy mix. This project is
in line with our decarbonization initiative which aims at enhancing uptake of clean renewable energy. Retrofitting of the
initial 23 diesel generation plants continued with funding of 33 million Euros by French Development Agency (AFD). A
further 26 solar mini-grids have been commissioned by Rural Electrification and Renewable Energy Corporation (REREC)
in collaboration with the Company. The newly commissioned 60kW solar - 40kW diesel hybrid plants in off-grid areas
will reduce the carbon footprint, and help protecting the environment.
Environmental Assessments and Compliance

In compliance with environmental regulations, the Company conducts environmental and social impact assessments for
all new infrastructure projects. In addition, we conduct environmental audits and monitoring for existing projects to ensure
that they continue to be environmentally sustainable.
De-carbonising the Energy Mix

Decarbonisation of the energy mix is one of the initiatives identified in our Corporate Strategic Plan. The Company has
progressively improved the energy mix by dispatching more hydro, geothermal, wind and solar energy, thus lowering the
contribution from fossil oil-fired thermal plants. During the year, renewable energy sources supplied 93% of the energy
purchased.
2. Social Sustainability
(i) Promoting a Safety Culture
The safety of our employees, customers and the general public is of great concern to the Company as we transact our
business. In the period, we reviewed our electrical safety rules to align them with the dynamic business environment
and regulatory changes. In addition, we have updated our safety procedures to accommodate safety exposures with the
adoption of new technology such as Live Line equipment and Gas Insulated Substations (GIS).
(ii) Safety awareness Campaigns:

During the year, we enhanced public electrical safety awareness campaigns with the aim of sensitising the public on safe
use of electricity. Reduction of both public and staff accidents is beneficial to the Company because it reduce and liability
to the Company. We conducted public safety campaigns through various mediums including community sensitization
forums, school talks, trade fairs and multi-sectoral consultative committees. We also conducted training for staff and
contractors covering key areas of statutory safety compliance, general health, first aid, fire protection and operational safety.
Obalwanda School in Homabay County, where one of our projects involved construction
of a workshop for children living with disabilities.
We sponsored Beyond Zero marathon in support of maternal healthcare.

(iii) Corporate Social Investment
Our Corporate Social Investment (CSI) Policy affirms our commitment to sustain good relationships with communities in
which we operate in. Our CSI strategy aims at contributing to the wellbeing of our communities, winning their support,
and fostering loyalty and goodwill for business continuity.
We implemented our CSI plan during the year which covered key support areas in promoting education, social welfare
and environmental conservation.
Promoting Education: Over the years we have invested heavily in promoting education through provision of learning facilities
and school fees for bright and disadvantaged students. During the year, we supported underprivileged in Starehe Boys
and Starehe Girls Centers through our endowment plan. We also invested in construction and renovation of classrooms
at Chesitia Primary School in Trans Nzoia County and Masumbi Primary School in Siaya County. In addition, we funded
the electrification of Kiminini Primary School in Trans Nzoia County.
Under our Wezesha Jamii Programme, where employees are given an opportunity to propose and champion community-
based projects, we funded various disability and education projects across the country during the year.
Some of the key projects that were funded through the Wezesha Jamii Programme include completion of a workshop for
children living with disability at Obalwanda School in Homabay County; construction and renovation of classrooms at
Kyome Primary School in Makueni County and Kenet Early Childhood Education and Primary School in Baringo County and
Funannyata Primary School in Marsabit County. In addition, we funded the construction of ablution block for Ruiru Primary
School in Nakuru County Solai, and provided school desks for Moyeni Primary School in Kwale County among others.
Supporting Social Welfare: Our programmes to support social welfare activities included funding of Primadona Foundation
in support of their rehabilitation programme for vulnerable children in Makueni County. The Company also supported Faf
Kalala village in Garissa County to install a water pump for their borehole. During the same period, we sponsored Little
Sisters of the Poor who support elderly and underprivileged people from different communities.
Promoting Health: We supported Jaramogi Oginga Odinga Teaching and Referral Hospital in Kisumu to purchase a
Cardiotocograph machine which is used in maternal healthcare. We also contributed towards the 2020, Beyond Zero
annual Marathon whose proceeds go towards supporting maternal healthcare across the country.
3. Financial Sustainability
Ensuring financial sustainability is one of the key objectives in our Corporate Strategic Plan. Key initiatives to ensure financial
sustainability include growing electricity sales and revenue with special focus on large power consumers managing costs,
enhancing system efficiency, improving customer experience and business competitiveness.
Supplying electricity to customers at least cost ensures electricity remains affordable. Contributes to business sustainability
as customers obtain more value and default less on their bills. Cost-reflective tariffs are however, necessary for financial
sustainability of our business.
As the system operator, we aim at maximising use of renewable energy and therefore, minimize use of the expensive
thermal plants. Renewable energy enables stabilisation of electricity prices compared to thermal energy which is prone
to variations due to fluctuations in global fuel prices.
Bernard Ngugi
We deployed the Live Line Maintenance Programme across all our business regions.
DIRECTORS’ REPORT
The Directors submit their report together with the audited financial statements of the Kenya Power and Lighting Company
Plc (the “Company”) for the year ended 30 June 2020, which disclose the state of affairs of the Company.
BUSINESS REVIEW
The core business of the Company continues to be the transmission, distribution and retail of electricity purchased in
bulk from Kenya Electricity Generating Company Plc (KenGen), Independent Power Producers (IPPs), Uganda Electricity
Transmission Company Limited (UETCL), Ethiopia Electricity Power Company and Tanzania Electric Supply Company
Limited (TANESCO).
The Company operated in a unique and challenging environment over the financial year under review, this was due to
the COVID-19 pandemic which had a significant impact on the business. During the fourth quarter (April to June 2020),
demand for electricity dropped significantly due to the close down of most industries and businesses in compliance with
the government containment measures against the spread of the virus.
At the height of the pandemic, electricity consumption declined by an average 14.8% in the fourth quarter, resulting in a
reduction of revenues of approximately Shs 5.6 billion between April and June 2020. Further, the socio-economic impact
arising from the COVID-19 pandemic led to an increase in the level of outstanding receivables by Shs 3.9 billion due to
inability of customers to pay for electricity consumption in time. The Company deliberately did not disconnect customers
for non-payment of bills during this period. This increase in overdue receivables had an impact on the level of provisions
for doubtful debts.
Foreign exchange fluctuation also impacted negatively on the operating results due to the significant foreign exchange
exposure in the Company’s borrowings as well as outstanding power purchase balances for independent power producers,
the local currency also fluctuated significantly against the US Dollar and the Euro.
The performance of the business was impacted significantly by the allowance for expected credit losses, provision for
obsolete, slow- moving and non- moving inventories and the volatile depreciation of the Kenya Shilling against the dollar.
The reported loss was after adjusting the following items amounting to Shs 10,453 million;
Shs
Nature of expense Notes Reason for increase
Million
Provision for trade and other Increase in receivables as a result of non-payment of bills
9 (d) 3,268
receivables due to effects of the COVID-19 pandemic.
Increase of provision for
Enhanced impairment of inventories due to a change in
inventories due to the change in
20 3,654 estimation by the Board of Directors, where all inventories
estimation of provision of slow
over 3 years is fully impaired.
and non-moving inventories
Increase in unrealized foreign exchange losses due to the
Unrealised foreign exchange
11 (b) 3,531 depreciation of the Shs from 102/1USD in June 2019 to
differences
over 106/1USD in June 2020.
Total provisions & unrealised Impact on the profit or loss resulting to a loss before tax of
10,453
foreign exchange loss Shs 7,042 million.
During the year under review, the Company’s top management was substantively reconstituted following a competitive
recruitment process. A new MD & CEO was recruited along with General Managers and thus constituting a robust executive
committee to drive the business.
The new leadership team realigned its focus and the Company’s resources towards the key areas of; system efficiency,
sales growth, revenue collection, cost management and customer experience.
The following initiatives were implemented towards achieving the desired results in the key focus areas;
•• Roll out of the County business structure under which each County operates as a business unit and is further
segmented into distribution areas and zones to enhance accountability and improve customer experience.
•• The launch of live-line maintenance technology where customers remain on supply during planned system
maintenance hence increasing up-time and sales.
•• Aggressive electricity installation inspection campaign to identify and resolve faulty meters and non-metered
connections.
•• Optimization of internal resources by use of Company owned facilities and releasing of office -based staff for
revenue collection and inspection campaigns.
DIRECTORS’ REPORT (CONTINUED)
BUSINESS REVIEW (CONTINUED)

•• Launch of deferred payment option for premium customer applications for connection to spur growth in unit sales.
•• Aided collection by the National Treasury, of overdue electricity debt owed by government departments and entities.
Foreign exchange fluctuation also impacted negatively on the operating results due to the significant foreign exchange
exposure in the Company’s borrowings as well as outstanding power purchase balances for independent power producers.
The local currency also fluctuated significantly against the US Dollar and the Euro.
There was a 0.9 % growth Small and Medium-sized Entities (SME) category while the large power customer segment
declined by 3.5 %; these are the main demand drivers of the business and were greatly affected by the COVID-19 pandemic.
Strategic installations including health facilities and companies that supply water experienced increase in outstanding
electricity debt, these could not be disconnected for non-payment due to the importance of the services they provide.
The Company continues to engage with these entities for settlement of the arrears.
The retail tariff application for the fourth tariff control period remains pending as submitted to the Energy and Petroleum
Regulatory Authority (EPRA) and the Company is optimistic that a review taking into consideration the revenue requirements
of the sector and the need for affordability to the customer, will be finalized promptly.
The Company continues to reposition itself in the energy market in the face of emerging alternative sources driving grid
defection and is laying out strategies to reclaim its position as the energy solution provider of choice.
RESULTS FOR THE YEAR

2020 2019
Shs’000 Shs’000
(Loss)/Profit before income tax (7,042,014) 333,614
Income tax credit /(expense) 6,102,532 (72,061)
(Loss)/Profit for the year (939,482) 261,553
DIVIDEND
A dividend of Shs 1.93 million (2019: Shs 1.93 million) is payable on the cumulative preference shares and has been
recognised in the statement of profit or loss and other comprehensive income under finance costs.
No interim dividend was paid in 2020 (2019: Nil). The Directors do not recommend payment of final dividend for the
year 2020 (2019: Nil).
DIRECTORS
The current Directors are as shown on page 4.
STATEMENT AS TO DISCLOSURE TO THE COMPANY’S AUDITOR

With respect to each Director at the time this report was approved:
(a) There is, so far as the Director is aware, no relevant audit information of which the Company’s auditor is unaware; and
(b) The Director has taken all the steps that the Director ought to have taken as a Director so as to be aware of any
relevant audit information and to establish that the Company’s auditor is aware of that information.
TERMS OF APPOINTMENT OF THE AUDITOR

The Auditor General is responsible for the statutory audit of the Company’s financial statements in accordance with Section
35 of the Public Audit Act, 2015 (the “Act”). Section 23(1) of the Act empowers the Auditor General to appoint other
auditors to carry out the audit on his behalf. Accordingly, Ernst & Young LLP were appointed to carry out the audit for the
year ended 30 June 2020 and report to the Auditor-General.
BY ORDER OF THE BOARD
Imelda Bore
Company Secretary
25 February 2021
DIRECTORS’ RENUMERATION REPORT
INFORMATION NOT SUBJECT TO AUDIT

Remuneration of the Company’s Board is set within the Government limits for state corporations.
Statement of Company’s policy on Directors’ remuneration
During the year, there was no change to the Board remuneration. The current policy as guided by the Government through
the State Corporations Advisory Committee (SCAC) will apply in subsequent years until the same is revised. The Company
does not have any share options or long-term incentives plans. There was no compensation for past Directors, or any sum
paid to third parties in respect of a Director’s services.
The only executive Director is the Managing Director and Chief Executive Officer. He has performance targets for the year
which apply to the Board. Non-Executive Directors’ remuneration is fixed by SCAC.
Contract of service
The Non-Executive Directors are not under contract but are subject to retirement by rotation at the Annual General Meeting
(AGM). Mr. Bernard Ngugi was appointed as the Managing Director & CEO and Executive Director of the Company on
28 October 2019 to replace Eng. Jared Othieno who was the Acting Managing Director & CEO and Executive Director
since 17 July 2018.
Statement of voting at general meeting
During the last AGM held on 13 November 2020 the shareholders unanimously approved the Directors’ fee of Shs 600,000
per year per Director on a pro-rata basis.
Summary of the remuneration policy
The following are highlights of the Board remuneration policy for the Company:
1. During every Board or Committee meeting, Directors are entitled to a sitting allowance, lunch allowance (in lieu
of lunch being provided), accommodation allowance and mileage reimbursement at Automobile Association of
Kenya rates.
2. The Chairman receives a monthly honorarium.
3. Directors’ fees are paid annually upon approval by shareholders during the AGM in accordance with Government’s
guidelines for all state corporations.
4. Non-Executive Directors are paid a total of Shs 600,000 per annum or on pro rata basis for period served.
5. The remuneration for executive Directors is as per the negotiated employment contracts.
6. The Company will not propose to make any changes in the remuneration level during the current financial year.
7. There are no Directors’ loans in the Company’s loans.
8. There are no Directors’ shares schemes.
9. A sitting allowance is paid to each Non-Executive Director for attending a duly convened and constituted meeting
of the Board or of any of the committees.
10. An allowance is paid to Non-Executive Directors for any day of travel away from his regular station in order to
attend to duties of the Company.
11. Medical insurance cover is provided to all Non-Executive Directors for their individual medical requirements
covering both out-patient and in-patient services.
DIRECTORS’ RENUMERATION REPORT(CONTINUED)
Directors’ remuneration
Below is a summary of entitlement per Board Member:
Type of payment Chairman Member

Honoraria (per month) Shs 80,000 N/A
Sitting allowance (per sitting) Shs 20,000 Shs 20,000
Telephone – airtime for mobile phone (per month) Shs 20,000 N/A
Transport allowance/mileage N/A* AA rates
Lunch allowance Shs 2,000 Shs 2,000
Director’s fees per annum on prorata basis Shs 600,000 Shs 600,000
Director’s bonus N/A N/A
Accommodation allowance outside Nairobi Shs 18,200 Shs 18,200
* Chairman was provided with a Company car during the year.
INFORMATION SUBJECT TO AUDIT

For the financial years ended 30 June 2020 and 30 June 2019, the Directors’ fees and remuneration are as below:
Salary/ Expense
Fees Total
honoraria allowances
Shs’000 Shs’000 Shs’000 Shs’000
Year ended 30 June 2020
Executive Director
Bernard Ngugi- MD&CEO 6,774 - 1,122 7,896
Jared Othieno- Ag. MD&CEO 1,879 - 1,097 2,976
Non-Executive Directors
Mahboub Mohamed – Chairman 960 600 1,916 3,476

Adil Khawaja - 600 792 1,392
PS, National Treasury - 600 - 600
PS, Energy - Joseph Njoroge - 600 164 764
Wilson Mugung’ei - 600 2,189 2,789
Kairo Thuo - 600 1,298 1,898
Brenda Engomo - 600 2,487 3,087
Zipporah Kering - 600 2,896 3,496
Beatrice Gathirwa - - 1,344 1,344
Isaac Kiva - - 1,376 1,376
9,613 4,800 16,681 31,094
Executive Director
Executive Director
Kenneth Tarus- Former MD&CEO 3,880 - 2,969 6,849
DIRECTORS’ RENUMERATION REPORT(CONTINUED)
INFORMATION SUBJECT TO AUDIT (CONTINUED)

Executive Director
Executive Director
Kenneth Tarus- Former MD&CEO 3,880 - 2,969 6,849
Mahboub Mohamed – Chairman 960 350 1,129 2,439
Adil Khawaja - 600 678 1,278
CS, National Treasury – Henry Rotich –
- 600 - 600
Replaced in July 2019
PS, Energy - Joseph Njoroge - 600 188 788
Wilson Mugung’ei - 600 2,605 3,205
Kairo Thuo - 600 1,674 2,274
Brenda Engomo - 600 1,669 2,269
Zipporah Kering - 350 6,865 7,215
Beatrice Gathirwa - - 2,326 2,326
Isaac Kiva - - 2,490 2,490
12,665 4,300 27,123 44,088
BY ORDER OF THE BOARD
Imelda Bore
Company Secretary
25 February 2021
STATEMENT OF DIRECTOR’S RESPONSIBILITIES
The Kenyan Companies Act, 2015 requires the Directors to prepare financial statements for each financial year that give
a true and fair view of the financial position of the Company as at the end of the financial year and of its profit or loss for
that year. It also requires the Directors to ensure that the Company keeps proper accounting records that: (a) show and
explain the transactions of the Company; (b) disclose, with reasonable accuracy, the financial position of the Company; and
(c) enable the Directors to ensure that every financial statement required to be prepared complies with the requirements
of the Companies Act, 2015.
The Directors accept responsibility for the preparation and presentation of these financial statements in accordance with
International Financial Reporting Standards and in the manner required by the Kenyan Companies Act, 2015. They also
accept responsibility for:
i. Designing, implementing and maintaining internal control as they determine necessary to enable the preparation
of financial statements that are free from material misstatements, whether due to fraud or error;
ii. Selecting suitable accounting policies and then applying them consistently; and
iii. Making judgements and accounting estimates that are reasonable in the circumstances.
In preparing the financial statements, the Directors have assessed the Company’s ability to continue as a going concern
and disclosed, as applicable, matters relating to the use of going concern basis of preparation in Note 2 (a) of the financial
statements.
The Directors acknowledge that the independent audit of the financial statements does not relieve them of their responsibility.
Approved by the Board of Directors on 25 February. 2021 and signed on its behalf by:
Vivienne Yeda Mr. Sachen Gudka Mr. Bernard Ngugi

Chairman, Board Chairman, Audit Committee Managing Director and CEO
REPORT OF THE AUDITOR GENERAL
REPUBLIC OF KENYA
Telephone: +254-(20) 3214000 HEADQUARTERS

1ail: info@oagkenya.go.ke Anniversary Towers
Website: www.oagkenya.go.ke Monrovia Street
OFFICE OF THE AUDITOR GENERAL P.O. Box 30084-00100
NAIROBI
Enhancing Accountability
REPORT OF THE AUDITOR-GENERAL ON THE KENYA POWER AND LIGHTING

COMPANY PLC FOR THE YEAR ENDED 30 JUNE, 2020
REPORT ON THE FINANCIAL STATEMENTS
Opinion
The accompanying financial statements of The Kenya Power and Lighting Company
PLC set out on pages 67 to 134, which comprise of the statement of
financial position as at 30 June, 2020, statement of profit or loss and other
comprehensive income, statement of changes in equity and the statement of
cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory information, have been audited on my behalf by
Ernst and Young LLP, auditors appointed under Section 23 of the Public
Audit Act, 2015. The auditors have duly reported to me the results of their audit
and on the basis of their report, I am satisfied that all the information and
explanations which, to the best of my knowledge and belief, were necessary
for the purpose of the audit were obtained.
In my opinion, the financial statements present fairly, in all material respects, the financial
position of the Kenya Power and Lighting Company PLC as at 30 June, 2020, and of its
financial performance and its cash flows for the year then ended, in accordance with
International Financial Reporting Standards and comply with the Companies Act, 2015
and the Public Finance Management Act, 2012.
Basis for Opinion
The audit was conducted in accordance with International Standards of Supreme Audit
Institutions (ISSAls). I am independent of The Kenya Power and Lighting Company PLC
Management in accordance with ISSAI 130 on Code of Ethics. I have fulfilled other
ethical responsibilities in accordance with the ISSAI and in accordance with other
ethical requirements applicable to performing audits of financial statements in Kenya. I
believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my opinion.
Emphasis of Matter
1. Material Uncertainty Relating to Going Concern
I draw attention to Note 2(a) to the financial statements which discloses that the
Company recorded a loss before tax of Kshs. 7,042,014,000 for the year ended 30 June,
2020 (2019: profit before tax of Kshs.333,614,000). Further, according to the same note
the Company reported current liabilities of Kshs.117,475, 761,000, which exceeded its
current assets of
Report of the Auditor-General on The Kenya Power and Lighting Company PLC for the year ended 30 June, 2020
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE
YEAR ENDED 30 JUNE 2020
2020 2019
Notes
Shs’000 Shs’000
Revenue from contracts with customers 7(a) 133,258,602 133,140,887
Cost of sales 8 (87,499,392) (90,152,296)
Gross profit 45,759,210 42,988,591
Net operating expenses

Network management 9(a) (11,118,760) (10,805,536)
Commercial services 9(b) (6,659,415) (7,674,136)
Administration 9(c) (26,788,609) (21,129,390)
Expected credit losses on financial assets 9(d) (3,267,687) (1,434,364)
(47,834,471) (41,043,426)
Operating income (2,075,261) 1,945,165
Other income 7(b) 7,387,487 8,585,791
Operating profit 5,312,226 10,530,956
Finance income 11(a) 123,188 117,900

Finance costs 11(b) (12,477,428) (10,315,242)
(Loss)/Profit before income tax (7,042,014) 333,614

Income tax credit/(expense) 13(a) 6,102,532 (72,061)
Basic and diluted earnings per share (Shs) 14 (0.48) 0.13
Other comprehensive income:
Items that will not be subsequently reclassified to

profit or loss
Remeasurement of the retirement benefit asset 32 (527,414) (1,664,694)

Deferred income tax relating to remeasurement of
27
the retirement benefit asset 131,854 499,408
Other comprehensive loss (395,560) (1,165,286)
Total comprehensive loss for the year (1,335,042) (903,733)
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020
2020 2019
ASSETS Notes
Shs’000 Shs’000
Non-current assets
Property and equipment 16 276,859,904 277,066,960
Leasehold land 17 667,014 883,126
Intangible assets 18 2,380,739 3,491,263
Retirement benefit asset 32 527,328 1,103,011
Trade and other receivables 21(a) 1,010,805 1,239,626
Right of use asset 19 1,194,630 -
282,640,420 283,783,986
Current assets
Inventories 20 4,831,372 9,834,900
Trade and other receivables 21(b) 33,815,005 30,110,660
Current income tax 13(c) 96,271 71,108
Short-term deposits 22(a) 442,741 409,465
Bank and cash balances 22(b) 3,441,550 4,284,496
42,626,939 44,710,629
TOTAL ASSETS 325,267,359 328,494,615
EQUITY AND LIABILITIES

Equity attributable to owners
Ordinary share capital 23 4,878,667 4,878,667
Share premium 24 22,021,219 22,021,219
Retained earnings 25 27,996,913 29,330,976
TOTAL EQUITY 54,896,799 56,230,862

Non-current liabilities
Deferred income tax 27 20,590,805 26,886,643
Deferred income 26 12,900,609 15,103,027
Trade and other payables 28(a) 23,487,673 21,935,192
Lease liabilities 29 915,480 -
Borrowings 30 94,957,232 92,615,401
Preference shares 31 43,000 43,000
152,894,799 156,583,263
Current liabilities
Trade and other payables 28(b) 88,502,706 81,196,162
Deferred income 26 3,041,221 3,935,632
Provisions 33 1,034,557 813,331
Lease liabilities 29 314,948 -
Borrowings 30 15,004,361 18,768,015
Dividends payable 34 806,222 811,045
Overdraft 22(b) 8,771,746 10,156,305
117,475,761 115,680,490
TOTAL EQUITY AND LIABILITIES 325,267,359 328,494,615
The financial statements on pages 67 to 134 were approved and authorised for issue by the Board of Directors on 25th
February. 2021 and were signed on its behalf by:
Vivienne Yeda Mr. Sachen Gudka Mr. Bernard Ngugi

Chairman, Board Chairman, Audit Committee Managing Director and CEO
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020
Ordinary Share Retained
Notes share capital premium earnings Total
(Note 23) (Note 24) (Note 25)
Shs’000 Shs’000 Shs’000 Shs’000

Balance at 1 July 2018
As restated 4,878,667 22,021,219 33,722,537 60,622,423
Changes on application of IFRS 9 - - (3,487,828) (3,487,828)
Profit for the year - - 261,553 261,553

Other comprehensive loss - - (1,165,286) (1,165,286)
Total comprehensive income for the year - -

(903,733) (903,733)
At 30 June 2019 4,878,667 22,021,219 29,330,976 56,230,862
Balance at 1 July 2019 4,878,667 22,021,219 29,330,976 56,230,862
Initial application of IFRS 16 2(b) - - 979 979
Loss for the year - - (939,482) (939,482)

Other comprehensive loss - - (395,560) (395,560)
Total comprehensive loss for the year - -

(1,335,042) (1,335,042)
At 30 June 2020 4,878,667 22,021,219 27,996,913 54,896,799
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020
2020 2019
Cash flows from operating activities Notes Shs ‘000 Shs ‘000
Cash generated from operations 35(a) 31,497,107 35,085,640

Income tax paid 13(c) (87,034) (176,540)
Interest received 35(g) 120,938 118,020
Gratuity paid 33 (60,644) (120,196)
Repayment of interest portion of lease liabilities 29 (152,489) -
Interest paid 35(d) (7,756,667) (8,067,893)
Net cash generated from operating activities 23,561,211 26,839,031
Cash flows from investing activities
Purchase of property and equipment 35(h) (16,195,490) (19,978,300)

Purchase of intangible assets 18 (112,111) (974,990)
Prepayment of operating lease 17 - (99,120)
Proceeds from disposal of property and equipment 35(e) 66,787 104,896
Net cash used in investing activities (16,240,814) (20,947,514)
Cash flows from financing activities
Repayment of borrowings 35(b) (12,400,318) (13,132,712)

Proceeds from borrowings 35(b) 14,632,483 9,559,072
Repayment of principal portion of lease liabilities 29 (248,040) -
Dividends paid to owners of the Company 35(f) (6,753) (52,892)
Net cash generated from/(used) in financing activities 1,977,372 (3,626,532)
Net increase in cash and cash equivalents 9,297,769 2,264,985

Cash and cash equivalents at 01 July (5,426,474) (7,603,146)
Effect of foreign exchange rate changes on cash and
cash equivalents 37,186 (88,313)
Cash and cash equivalents at 30 June 35(c) 3,908,481 (5,426,474)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
1. GENERAL INFORMATION
The Kenya Power and Lighting Company Plc, a public company domiciled in the Republic of Kenya, was incorporated
on 6 January 1922, as East Africa Power & Lighting Limited. The Company changed its name on 11 October 1983. The
core business of the Company continues to be the transmission, distribution and retail of electricity purchased in bulk
from Kenya Electricity Generating Company Plc (KenGen), Independent Power Producers (IPPs), Uganda Electricity
Transmission Company Limited (UETCL) and Tanzania Electric Supply Company Limited (TANESCO). The shares of
the Company are listed on the Nairobi Securities Exchange. The Government of Kenya is the principal shareholder
in the Company holding a 50.1% equity interest.
The address of the Company’s registered office is as follows:
Stima Plaza
Kolobot Road, Parklands
P.O. Box 30099 – 00100, Nairobi.
2. BASIS OF PREPARATION
The financial statements are prepared on a going concern basis and in compliance with International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board and the requirements of the
Kenyan Companies Act, 2015. They are presented in Kenya Shillings, which is also the functional currency (see Note
3 (i) below), rounded to the nearest thousand (Shs’000), except where otherwise indicated.
The financial statements comprise a profit and loss account (statement of profit or loss), statement of comprehensive
income, balance sheet (statement of financial position), statement of changes in equity, statement of cash flows,
and notes. Income and expenses, excluding the components of other comprehensive income, are recognised in
the profit and loss account. Other comprehensive income is recognised in the statement of comprehensive income
and comprises items of income and expense (including reclassification adjustments) that are not recognised in the
profit and loss account as required or permitted by IFRS. Reclassification adjustments are amounts reclassified to the
profit and loss account in the current period that were recognised in other comprehensive income in the current or
previous periods. Transactions with the owners of the Company in their capacity as owners are recognised in the
statement of changes in equity.
(a) Going concern assessment

The Company recorded a loss before tax of Shs 7,042 million for the year ended 30 June 2020 (2019: Profit before
tax of Shs 334 million) and had net current liabilities of Shs 74,849 million at 30 June 2020 (2019: Shs 70,970
million). These conditions indicate the existence of a material uncertainty that may cast significant doubt on the
company’s ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge
its liabilities in the normal course of business. The Company’s performance was affected by the following factors
together with other factors discussed under the business review section to these financial statements :
•• The Covid-19 pandemic resulted in the closing down and scaling down of key electricity consumers thereby
largely contributing to only a marginal increase in sales of Shs 117 million against a growth plan of Shs
32,965 million.
•• Debt collection from electricity customers was a challenge as customers were unable to meet their bill
payment obligations in time due to the effects of Covid-19 resulting to an increase in receivables by Shs
3,849 million. This led to a further strain on the Company’s liquidity position.
•• High system losses at 23.46% occasioned by rapid growth in the distribution network without commensurate
growth in electricity demand resulting in underutilized grid assets leading to increased technical losses.
•• The take or pay pricing model for Power Purchase Agreements (PPAs) with Independent Power Producers
which resulted in fixed capacity charges that are unfavourable in the absence of demand growth and during
declining demand like this period of the Covid-19 pandemic.
•• Delays in restructuring of the retail tariff to reflect the electricity purchases, transmission and distribution costs.
•• Aggressive connectivity and grid reinforcement programmes that were necessitated by the Government’s
target of achieving universal access by 2022. This resulted in utilization of internal funds and medium-term
commercial debts to fund these long-term projects without corresponding revenue inflows.
The Board and management are undertaking a number of key strategic initiatives to improve the financial results of
the Company going forward. These include;
NOTES (CONTINUED)
2. BASIS OF PREPARATION (continued)

(a) Going concern assessment (continued)
(i) To grow revenues and increase the profitability of the Company;
•• Restructuring of business operations by adopting a County Business structure which is expected to enhance
business performance and efficiency.
•• The Company will pursue an optimal balance between generation and electricity demand by engaging
the key stakeholders. In addition, the company will intensify sales growth through increased connectivity
targeting premium customers by offering deferred payment arrangements and accelerated connection times.
•• Active engagement with the regulator (EPRA) and other stakeholders on the critical need for a cost reflective
tariff including review of allowed system losses to reflect the grid dynamics.
(ii) To reduce system losses and operating expenses;

•• Through ongoing system upgrades, Advanced Metering Infrastructure (AMI) and energy balancing, the
company expects to achieve reduction in system losses from the current 23.46% to the allowable level of
19.9%, as determined by the regulator by 2025.
•• The Company has put in place more stringent expenditure controls and cost management measures.
•• The Company is also engaging the Government to consider reviewing the take-or- pay pricing model for Power
Purchase Agreements (PPAs) with independent Power Producers which results in fixed capacity charges.
(iii) To improve the liquidity position;

•• As at the end of the year, the company has a total debt portfolio standing at Shs118,730 million, comprising
of Shs 65,470 million commercial debt and Shs 53, 260 million on-lent debt.
•• The on-lent debts are guaranteed by the Government and hence payable to the Government. Through a letter
dated 30 June 2020, the Company successfully petitioned the Government to grant moratorium for payment
of principal and interest on Government On-Lent loans amounting to Shs 5,700 million until July 2021 and
waive any penalties arising from the deferment of these payments for a period of one year. This will enable
the Company to meet its operational obligations until the situation returns to normalcy.
•• The Government of Kenya (GOK) is reviewing KPLC’s existing commercial facilities with objective to retire
expensive ones through engagement on favourable terms with International Partners.
•• The Company has also obtained waivers for breach of the current ratio for the third consecutive year and is
cognisant of the fact that achieving the covenanted position on the ratios may be infeasible in one year. KPLC
has thus initiated discussions with key lenders on a potential review of the covenants as well as seeking on-
lent debt repayment moratorium to provide leverage for commercial debt restructuring discuss. The strategy
of the Company is to pursue restructuring of short-term commercial facilities (overdrafts) into medium-term
facility. Towards this objective, the company has managed to obtain bank term loans amounting to Shs 6,750
million terming a bigger portion of the existing bank overdraft position. This will see a reduction in finance
costs and ease the cash flow strain.
•• KPLC is also actively engaging the Government to ensure budget reallocation to Government institutions
to ensure electricity bills owed by these institutions are settled. In addition, the Company is petitioning the
Government to release funds owed to KPLC for the management, operations and maintenance of the RES
network.
•• Capital expenditure has been restricted to critical projects.
•• The State and energy sector public organisations through the Ministry of Energy (MOE), have been requested
to ease pressure on supplier dues payable by KPLC i.e. the amount to be settled on a payment plan including
a moratorium on dues payable.
Despite the challenging operating environment, the Company continues to receive immense support from its
major stakeholders. The Company obtained a one-year moratorium from the National Treasury on the repayment
of Government On-Lent Loans due to the National Exchequer. The Energy and Petroleum Regulatory Authority
(EPRA) increased the allowable system losses from 14.9% to 19.9% with effect from July 2020; this will help in
cushioning the Company against the high system losses.
The management is confident that the ongoing initiatives and invaluable support from key stakeholders will place
the Company on a revenue growth trajectory in the short run and improve its working capital.
NOTES (CONTINUED)
2. BASIS OF PREPARATION (CONTINUED)

(a) Going concern assessment (continued)
The Board of Directors wishes to assure all stakeholders of its commitment to the stated initiatives that will ensure
business continuity and excellence in the delivery of services to our customers.
Based on the above, the Directors consider it appropriate to prepare the financial statements on the basis of
accounting policies applicable to a going concern. This basis of preparation presumes that the company will
realize its assets and discharge its liabilities in the ordinary course of business.
(b) Changes in accounting policy and disclosures
(i) New standards, amendments, interpretations and improvements
The Company applied for the first-time certain standards and amendments, which are effective for annual periods
beginning on or after 1 July 2019. The Company has not early adopted any other standard, interpretation or amendment
that has been issued but not yet effective. A list of the standards and amendments is below:
•• IFRS 16 Leases
•• IFRIC Interpretation 23 Uncertainty over Income Tax Treatments
•• Prepayment Features with Negative Compensation – Amendments to IFRS 9
•• Long-term Interests in Associates and Joint Ventures – Amendments to IAS 28
•• Amendments to IAS 19: Plan Amendment, Curtailment or Settlement
•• AIP IFRS 3 Business Combinations – Previously held Interests in a joint operation
•• AIP IFRS 11 Joint Arrangements – Previously held Interests in a joint operation
•• AIP IAS 12 Income Taxes – Income tax consequences of payments on financial instruments classified as equity
•• AIP IAS 23 Borrowing Costs – Borrowing costs eligible for capitalization
The nature and the impact of the new standards, amendments and interpretations which are relevant to the Company
are described below:
IFRS 16, ‘Leases’
The Company adopted IFRS 16 with a date of transition of 1 July 2019, which resulted in changes in accounting
policies and adjustments to the amounts previously recognised in the financial statements. IFRS 16 replaces existing
leases guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15
Operating Leases – Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. It introduces significant changes to
lessee accounting by removing distinction between operating and finance lease and requiring recognition of right-
of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make
lease payments.
The Company has adopted IFRS 16 Leases retrospectively from July 2019. As permitted by the transitional provisions
of IFRS 16, the Company elected not to restate comparative figures. This means that the Company will not restate
comparative information but will recognise the cumulative effect of initially applying IFRS 16 as an adjustment to
opening equity at the date of initial application and the comparative information provided continues to be accounted
for in accordance with the Company’s previous accounting policy.
The Company has chosen to grandfather the definition of all its leases. This means that if a contract had been defined
as a lease prior to application of IFRS 16, the Company will not reassess the leases to determine if they are indeed
a lease per the definition of IFRS 16. The same will apply for contracts that had not been defined as lease, in which
case IFRS 16 will not apply.
The Company also applied the available practical expedients wherein it:
•• Used a single discount rate to a portfolio of leases with reasonably similar characteristics.
•• Relied on its assessment of whether leases are onerous immediately before the date of initial application.
NOTES (CONTINUED)

(b) Changes in accounting policy and disclosures (continued)
(i) New standards, amendments, interpretations and improvements (continued)
IFRS 16, ‘Leases’ (continued)
•• Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date
of initial application.
•• Used hindsight in determining the lease term where the contract contained options to extend or terminate
the lease.
Based on the above, as at 1 July 2019:

•• Right-of-use assets of Shs 1,303,412,000 were recognised and presented in the statement of financial position.
•• Lease liabilities of Shs 1,302,014,000 were recognized and presented in the statement of financial position.
•• The adoption of IFRS 16 had an impact of Shs 978,693 on the Company’s retained earnings and Shs 419,440
on deferred tax (Note 27).
Impact on the statement of financial position (increase/(decrease))
30 June Impact of adoption 1 July Increase/

2019 of IFRS 16 2019/30 June 2020 (Decrease)
Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000
Assets
Right of use assets (Note 19) - 1,303,412 1,303,412 1,303,412
Liabilities
Deferred tax liability (Note 27) - (419) (419) (419)
Lease liabilities (Note 29) - (1,302,014) (1,302,014) (1,302,014)
Net impact on equity - 979 979 979
Impact on the statement of profit or loss (increase/(decrease))
Impact of adoption of IFRS 16 30 June 2020

Lease expense Shs ‘000 Shs ‘000
Interest expense on lease liabilities (Note 29) 152,489 152,489
Depreciation on right of use assets (Note 19) 285,237 285,237
Net impact on profit 437,726 437,726
When measuring lease liabilities for leases that were classified as operating leases, the Company discounted lease
payments using its incremental borrowing rate at 1 July 2019. An incremental borrowing rate of 13% has been applied
as the discount rate based on the average lending rate in the Kenyan market on the date of initial application. A single
discount rate has been used for the entire portfolio of leases.
Where applicable, initial direct costs was incorporated in the measurement of the right of use asset at commencement
of the lease.
The lease liabilities as at 1 July 2019 can be reconciled to the operating lease commitments as of 30 June 2019, as follows:
NOTES (CONTINUED)

(i) New standards, amendments, interpretations and improvements (continued)
Assets Shs ‘000
Undiscounted operating lease commitments at 30 June 2019 1,313,833

Weighted average incremental borrowing rate at 1 July 2019 13%
Discounted operating lease commitments at 1 July 2019 1,302,014
Lease liabilities at 1 July 2019 (Note 29) 1,302,014
IFRIC Interpretation 23 Uncertainty over Income Tax Treatments

In June 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments (the Interpretation)
which clarifies application of the recognition and measurement requirements in IAS 12 Income Taxes when there is
uncertainty over income tax treatments.
Scope
The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects
the application of IAS 12. The Interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it
specifically include requirements relating to interest and penalties associated with uncertain tax treatments.
Key requirements
The Interpretation specifically addresses the following:
•• Whether an entity considers uncertain tax treatments separately.
•• The assumptions an entity makes about the examination of tax treatments by taxation authorities.
•• How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates .
•• How an entity considers changes in facts and circumstances?.
An entity has to determine whether to consider each uncertain tax treatment separately or together with one or
more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should
be followed. The interpretation is effective for annual reporting periods beginning on or after 1 January 2019, but
certain transition reliefs are available.
Impact.
Upon adoption of this interpretation, the Company considered whether it has any uncertain tax positions. The
Company determined, based on its tax compliance that it is probable that its tax treatments will be accepted by
the taxation authorities. The Interpretation did not have a significant impact on the financial statements of the
Company as it does not have any uncertain tax positions that require provision or disclosure.
(ii) New standards, amendments, interpretations and improvements Standards that are not yet effective and
have not been early adopted
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s
financial statements are listed below. The Company intends to adopt these standards, if applicable, when they
become effective:
Effective for annual periods beginning on or after 1 January 2020
•• Conceptual Framework for Financial Reporting to replace its 2010 conceptual framework. For the IASB, the
revised conceptual framework has been in effect since its publication date. Early application is permitted.
•• Definition of Material – Amendments to IAS 1 and IAS 8
•• Definition of a Business – Amendments to IFRS 3
•• Interest Rate Benchmark Reform: Amendments to IFRS 9, IAS 39 and IFRS 7
NOTES (CONTINUED)

(ii) New standards, amendments, interpretations and improvements Standards that are not yet effective and
have not been early adopted (continued)
Effective for annual periods beginning on or after 1 June 2020
•• Covid-19-Related Rent Concessions-Amendments to IFRS 16
•• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2
•• Reference to the conceptual framework -Amendments to IFRS 3
•• Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16
•• Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37
•• AIP IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter
•• AIP IFRS 9 Financial Instruments – Fees in the ’10% test for derecognition of financial liabilities
•• AIP IAS 41 Agriculture – Taxation in fair value measurements
•• Classification of Liabilities as Current or Non-current - Amendments to IAS 1
•• IFRS 17 Insurance Contracts
Effective date postponed indefinitely
•• Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate
or Joint Venture.
None of the standards and interpretations listed above are expected to have a significant impact on the Company’s
financial statements when they become effective.
3. SIGNIFICANT ACCOUNTING POLICIES

(a) Revenue
(i) Electricity sales
The Company’s contracts with the consumer and business customers cover the electricity sales. There is only
one performance obligation, which is to stand-ready to supply electricity to the customer. The transaction price
generally includes both a fixed monthly fee and a variable fee that depends on the customer tariff category as
determined by the Energy and Petroleum Regulatory Authority (EPRA). The fixed and variable components are
recognised based on the fees chargeable from the customer. If automated meter reading is not available, the
electricity consumption between the last meter reading and end of the month is estimated.
Electricity sales revenue is recognised when customers on post-paid metering are billed for the power consumed.
The billing is done for each monthly billing cycle based on the units consumed as read on the customers’ electricity
meters and the approved consumer tariffs. Unbilled revenue is included in electricity receivables, net of provision
for expected credit losses, to the extent that it is considered recoverable. Electricity sales revenue for customers
on prepaid metering is recognised when customers purchase electricity units and then adjusted for the estimated
amount of unconsumed power based on the consumption rate over a period of time.
(ii) Fuel cost charge
The Company recognises revenue relating to fuel costs charge in the month of approval by the Energy and Petroleum
Regulatory Authority (EPRA). The billing to customers is based on their individual consumption in the month and
applied as a charge per KWh. Fuel costs recoveries comprise the actual amounts billed to the customers.
NOTES (CONTINUED)
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(a) Revenue (Continued)
(iii) Foreign exchange adjustment
Foreign exchange payments, arising from exchange rate differences not factored in the retail tariffs, are recognised
and charged to the consumers of power to recover the losses in the foreign exchange rates. The net foreign
currency costs are passed on to the customers as a charge per KWh, which is approved each month by the EPRA.
The recovery of fuel costs and the foreign exchange costs is based on supplier invoices and factors in the ERC’s
target loss factor in transmission and distribution. For the year ended 30 June 2020, the target loss factor was 14.9%.
(iv) Deferred revenue
The Company has used a weighted average approach to determine the amount of revenue to defer and recognise
in the subsequent period(s).
Historical value of transactions and the current month’s value of transactions is obtained over each day of the
current month.
The historical data is then used to obtain the average number of tokens purchased in a month that is to be applied
to the current month’s (June 2020) data to obtain the revenue to be deferred.
(b) Other income
(i) Finance revenue
Finance revenue comprises interest receivable from bank deposits and other deposits. Finance revenue is recognised
as it accrues in profit or loss, using the effective interest method.
(ii) Rental income
Rental income is recognised on the straight-line basis over the lease term.
(iii) Capital contribution
When the connection provides the customer with a material right to supply of electricity, the connection is
allocated to deferred income (contract liabilities) when the customer is connected to the electricity network. The
deferred income is recognised in profit or loss within revenue on a straight-line basis over the estimated customer
life/relationship period of 5 years as the connection provides the customer with a material right of renewal that
extends the revenue recognition period beyond the initial contractual period. A period of 5 years was determined
after considering, inter alia, assumptions about the life cycle of the distribution network used to supply electricity
to customers.
(iv) Fibre optic income
This represents income from the lease of Company fibre optic cable lines to third parties. The revenue from leasing
the transmission lines is recognised on a straight-line basis over the lease term.
(c) Power purchase costs
Power purchase costs are recognised at the actual amounts charged to the Company by the suppliers of power.
These comprise:
(i) Non-fuel costs
These include capacity charges, energy cost and steam charges.
(ii) Foreign exchange costs
These relate to the net foreign currency losses incurred by Kenya Electricity Generating Company Plc (KenGen)
which are charged to the Company in accordance with the Power Purchase Agreements (PPAs) and the net
foreign currency losses incurred by the Company in the settlement of foreign currency denominated invoices
from independent power producers (IPPs).
(iii) Fuel costs
These comprise the cost of fuel incurred in the generation of electricity and invoiced by suppliers.
The recharge of power purchase costs relating to customers under the Rural Electrification Scheme (RES) is covered
in Note 3 (s).
(d) Inventories
Inventories are stated at the lower of cost and net realisable value after due regard for obsolete and slow-moving stocks.
The cost of inventories comprises purchase price, import duties, transport and handling charges and is determined
on a weighted average price. Net realisable value is the price at which the inventory can be realised in the normal
course of business after allowing for the costs of realisation.
NOTES (CONTINUED)

(e) Property and equipment
All property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Such cost includes the cost of replacing part of the property and equipment when that cost is incurred, if the
recognition criteria are met. Likewise, when a major inspection is performed, its cost is recognised in the carrying
amount of the property and equipment as a replacement if the recognition criteria are satisfied. All other repair
and maintenance costs are recognised in profit or loss as incurred.
No depreciation is charged on freehold land. Depreciation on other assets is calculated to write down their cost
to their residual values, on a straight-line basis, over their expected useful lives. The depreciation rates used are
as follows:
Buildings The greater of 2% and 1/the unexpired period of the lease
Transmission and distribution lines 2.5 – 20%
Machinery 2.85 – 6.66%
Motor vehicles 25%
Furniture, equipment and fittings 6.66 – 20%
Computers and photocopiers 30%
The assets’ residual values estimated useful lives and methods of depreciation are reviewed at the end of each
reporting period with the effect of any changes in estimate accounted for prospectively. An item of property and
equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
Any gain or loss arising from the recognition of an item of property and equipment (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset at the disposal date) is included in profit
or loss for the year. This does not apply to assets acquired by the Company on sale and leaseback transactions.
Properties in the course of construction for production, supply or administrative purposes are carried at cost
less any recognised impairment loss. Cost includes professional fees and for qualifying assets, borrowing costs
capitalised in accordance with the Company’s accounting policy. Such properties are classified to the appropriate
categories of property and equipment when completed and ready for intended use. Depreciation of these assets,
on the same basis as other property assets, commences when the assets are ready for their intended use.
At the end of each accounting period, the Company conducts impairment tests where there are indications of
impairment of an asset.
Capital work in progress
Capital work-in-progress is included under property and equipment and comprises costs incurred on ongoing
capital works relating to both customer and internal works. These costs include material, transport and labour
cost incurred.
(f) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever
there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation
method for the Company’s intangible assets are reviewed at least at each financial year end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset
is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in
accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the profit or
loss in the expense category consistent with the function of the intangible asset.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use
or disposal. Gains or losses arising from unforeseeable changes of such intangible assets are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or
loss when the asset is derecognised. Currently, intangible assets comprise software and have an estimated useful
life of five years.
(g) Income tax expense
Income tax expense represents the sum of the tax currently payable and deferred income tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in
the profit or loss because of items of income or expense that are taxable or deductible in other years and items
that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period.
NOTES (CONTINUED)
(g) Income tax expense (Continued)

Deferred income tax
Deferred income tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
income tax liabilities are generally recognised for all taxable temporary differences. Deferred income tax assets
are generally recognised for all deductible temporary differences to the extent that it is probable that taxable
profits will be available against which those deductible temporary differences can be utilised. Such deferred
income tax assets and liabilities are not recognised if the temporary difference arises from goodwill or from the
initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
The carrying amounts of deferred income tax assets are reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Company expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred income tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are
also recognised in other comprehensive income or directly in equity respectively.
(h) Leases
Policy applicable before 1 July 2019
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement
at inception date on whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets
or the arrangement conveys a right to use the asset.
Company as a lessee
Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of
the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at
the present value of the minimum lease payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are reflected in profit or loss.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease
term, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term.
Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over the lease term.
Company as a lessor
Leases where the Company does not transfer substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income.
Policy applicable from 1 July 2019
A contract is or contains a lease if it conveys the right to control the use of an identifiable asset for a period of
time in exchange for a consideration.
Company as a lessee
For a contract that contains a lease component and additional lease and non-lease components such as the lease
of an asset and provision of a maintenance services, the Company shall allocate the consideration payable on the
basis of the relative stand-alone prices, which shall be estimated if observable prices are not readily available.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. These two
items will be separately disclosed on the statement of financial position.
NOTES (CONTINUED)

(h) Leases (Continued)
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability plus
any initial direct costs and adjusted for any lease incentives, payments at or prior to commencement of the lease
and restoration obligations.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date
to the end of the lease term.
The Lease liability is initially measured at the present value of the lease payments payable over the lease term
discounted using the incremental borrowing rate. The incremental borrowing rate is the rate the Company would
have to borrow funds necessary (over similar term, with similar security), to obtain similar value asset, in similar
economic environment.
The lease liability is subsequently remeasured to reflect changes in the lease term, the assessment of a purchase
option, the amounts expected to be payable under residual value guarantees or future lease payments resulting
from a change in an index or a rate used to determine those payments.
Company as a lessor
When the Company acts as a lessor, it determines at lease inception whether the lease is a finance lease or an
operating lease. Leases where the Company does not transfer substantially all the risks and benefits of ownership
of the asset are classified as operating leases.
The Company recognises operating lease payments as income on a straight-line basis.
(i) Functional currency

The financial statements are presented in Kenya Shillings (Shs), which is the Company’s Functional and Presentation
currency. Transactions in foreign currencies are initially recorded at the Functional Currency rate ruling at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the
Functional Currency rate of exchange ruling at the reporting date. Transactions during the year are translated at
the rates ruling at the dates of the transactions. Gains and losses on exchange are dealt with in the profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined.
(j) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
The Company adopted IFRS 9 Financial Instruments with a date of transition of 1 July 2018.
The Company classifies its financial assets into the 'amortised cost' classification category based on the cash flow
characteristics of the asset and the business model assessment. All financial liabilities are classified as subsequently
measured at amortised cost. This is demonstrated in the following table.
Description of financial asset/financial liability IFRS 9 Classification
Short-term deposits (Note 22 (a)) Amortised cost
Cash and bank balances (Note 22 (b)) Amortised cost
Overdraft (Note 22(b)) Amortised cost
Trade and other receivables (Note 21 (a) and (b)) Amortised cost
Lease liabilities (Note 29) Amortised cost
Borrowings (Note 30) Amortised cost
Dividends payable (Note 34) Amortised cost
Trade and other payables (Note 28(a) and (b)) Amortised cost
Preference shares (Note 31) Amortised cost
Classification and measurement
The Company recognises financial assets when it becomes a party to the contractual rights and obligations in
the contract.
The classification requirements for debt instruments are described below;
NOTES (CONTINUED)

(j) Financial instruments (continued)
Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows
and sell, the Company assesses whether the financial instruments’ cash flows represent solely payments of principal
and interest (the ‘SPPI test’). In making this assessment, the entity considers whether the contractual cash flows are
consistent with a basic lending arrangement, i.e. interest includes only consideration for the time value of money,
credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where
the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement,
the related financial asset is classified and measured at fair value through profit or loss.
Subsequent measurement
Based on the business model and the cash flow characteristics, the Company classifies its debt instruments into
amortised cost or fair value categories for financial instruments. Movements in fair value are presented in either
profit or loss or other comprehensive income (OCI), subject to certain criteria being met.
For purposes of subsequent measurement, financial assets are classified in four categories:
•• Financial assets at amortised cost (debt instruments)
•• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
•• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
•• Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Company. The Company measures financial assets at amortised cost if
both of the following conditions are met:
•• The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows, and,
•• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are
subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified
or impaired.
Trade receivables are amounts due from customers for electricity supplied. If collection is expected in one year
or less, they are classified as current assets. If not, they are presented as non-current assets.
Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method less provision for impairment. A provision for impairment of receivables is established using an ECL
model in line with the requirements of IFRS 9 as outlined in the next section below. The amount of the provision
is the difference between the carrying amount and the present value of estimated future cash flows, discounted
at the effective interest rate. The amount of the provision is charged to profit or loss.
Financial assets at fair value through OCI (debt instruments)
•• The Company measures debt instruments at fair value through OCI if both of the following conditions are met:
•• The financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows, and,
•• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
or reversals are recognised in profit or loss and computed in the same manner as for financial assets measured
at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative
fair value change recognised in OCI is recycled to profit or loss.
The Company does not have any financial assets classified as debt instruments at fair value through OCI.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments:
Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.
NOTES (CONTINUED)

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other
income in the statement of profit or loss when the right of payment has been established, except when the Company
benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
The Company does not have any financial assets classified as equity instruments at fair value through OCI.
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured
at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held
for trading unless they are designated as effective hedging instruments.
Financial assets with cash flows that are not solely payments of principal and interest are classified and measured
at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt
instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments
may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly
reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value
with net changes in fair value recognised in profit or loss.
The Company does not have any financial assets classified under this category.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e., removed from the Company’s statement of financial position) when:
•• The rights to receive cash flows from the asset have expired; Or
•• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement;
and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of
the asset, the Company continues to recognise the transferred asset to the extent of its continuing involvement.
In that case, the Company also recognises an associated liability. The transferred asset and the associated liability
are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of
the original carrying amount of the asset and the maximum amount of consideration that the Company could be
required to repay.
Impairment of financial assets
The Company assesses, on a forward-looking basis, the expected credit loss (‘ECL’) associated with its debt
instrument assets carried at amortised cost and FVOCI. The Company recognises a loss allowance for such losses
at each reporting date.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial
recognition of the respective financial instrument.
The Company always recognises lifetime ECL for trade receivables, contract assets and lease receivables. The
expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s
historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions
and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including
time value of money where appropriate.
For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase
in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased
significantly since initial recognition, the Company measures the loss allowance for that financial instrument at
an amount equal to 12‑month ECL.
NOTES (CONTINUED)

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected
life of a financial instrument. In contrast, 12‑month ECL represents the portion of lifetime ECL that is expected to
result from default events on a financial instrument that are possible within 12 months after the reporting date.
(i) Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition,
the Company compares the risk of a default occurring on the financial instrument at the reporting date with the
risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment,
the Company considers both quantitative and qualitative information that is reasonable and supportable, including
historical experience and forward‑looking information that is available without undue cost or effort.
(ii) Definition of default
The Company considers the following as constituting an event of default for internal credit risk management
purposes as historical experience indicates that financial assets that meet either of the following criteria are
generally not recoverable:
•• when there is a breach of financial covenants by the debtor; or
•• information developed internally or obtained from external sources indicates that the debtor is unlikely to
pay its creditors, including the Company, in full (without considering any collateral held by the Company).
Except for amounts where the counterparty is the Government or related public sector entities or Government
Business Entities, the Company considers that default has occurred when a financial asset is more than 90 days
past due
The Company writes off debt only when there is objective evidence that the debt will not be recovered and after
it has exhausted its collection avenues.
(iii) Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the
magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default
and loss given default is based on historical data adjusted by forward‑looking information as described above.
As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the
reporting date.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows
that are due to the Company in accordance with the contract and all the cash flows that the Company expects
to receive, discounted at the original effective interest rate.
The Company recognises an impairment gain or loss in profit or loss or other comprehensive income for all financial
assets with a corresponding adjustment to their carrying amount through a loss allowance account.
Financial liabilities
Financial liabilities are classified as subsequently measured at amortised cost, except for financial liabilities at fair
value through profit or loss.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms,
or terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-
recognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognised in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position
if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
(k) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their Intended use or sale, are added to
the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
NOTES (CONTINUED)

(k) Borrowing costs (continued)
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Capitalised costs include interest charges and foreign currency exchange differences on borrowings for projects
under construction to the extent that they are regarded as adjustments to interest rates.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
(l) Provisions
Provisions are recognised when:
•• the Company has a present legal or constructive obligation as a result of past events;
•• it is probable that an outflow of resources will be required to settle the obligation; and the amount has been
reliably estimated.
(m) Impairment of non-financial assets

The Company reviews the carrying amounts of its tangible and intangible assets, to determine whether there is
any indication that those assets have suffered an impairment loss at reporting date, or when there are indications
of impairment. If any such indication exists, the recoverable amount of the asset is estimated, and an impairment
loss is recognised in profit or loss whenever the carrying amount of the asset exceeds its recoverable amount. An
asset’s recoverable amount is the higher of the asset’s or cash-generating unit’s (CGU’s) fair value less costs to sell
and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. Where it
is not possible to estimate the recoverable amount of an individual asset, the Directors estimate the recoverable
amount of the cash-generating unit to which the asset belongs.
Impairment of transmission and distribution lines
A decline in the value of the transmission and distribution lines could have a significant effect on the amounts
recognised in the financial statements. Management assesses the impairment of the lines whenever events or
changes in circumstances indicate that the carrying value may not be recoverable. Factors that are considered
important which could make an impairment review necessary include the following:
i. Significant decline in the market value beyond that which would be expected from the passage of time and
normal use.
ii. Evidence from internal reporting which indicates that the performance of the asset is, or will be, worse than
expected.
iii. Significant changes with adverse effect on the Company have taken place during the period, or will take
place in the near future, in the technology or market environment in which the Company operates, or in the
market to which an asset is dedicated.
iv. Evidence is available of the obsolescence or physical damage of an asset.
v. Significant changes with an adverse effect on the Company have taken place during the period or are expected
to take place in the near future, which impact the manner or the extent to which an asset is used. These
changes include plans to discontinue or restructure.
vi. The operation to which an asset belongs to or an asset is disposed before the previously expected date.
In management’s judgment, the impaired carrying values of the lines and substations are reinforced, replaced or
upgraded under the Energy Sector Recovery Project, after considering the above key indicators of impairment.
(n) Employees’ benefits
(i) C
ompany’s defined contribution scheme
The Company employees are eligible for retirement benefits under a defined contribution scheme. Payments to
the defined contribution scheme are charged to the statement of profit or loss as incurred.
(ii) Company’s defined benefit scheme
Pensioners and deferred pensioners (those who have left the employment of the Company but have not attained
retirement age to qualify as pensioners) existing at 30 June 2006 are eligible for retirement benefits under a defined
benefit scheme.
NOTES (CONTINUED)

(n) Employees’ benefits (continued)
(ii) Company’s defined benefit scheme (continued)
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising
actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding
interest), is reflected immediately in the statement of financial position with a charge or credit recognised in other
comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive
income is reflected immediately in retained earnings and will not be reclassified to profit or loss.
Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by
applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit
costs are categorised as service costs (including current service cost, past service cost, as well as gains and losses
on curtailments and settlements), net interest expense or income and remeasurement.
The Company presents the first two components of defined benefit costs in profit or loss in the line item of
pension cost-defined benefit scheme (included in staff costs). Curtailment gains and losses are accounted for as
past service costs.
The retirement benefit asset recognised in the Company’s statement of financial position represents the actual
surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of refunds from the plans or reductions in future
contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer
of the termination benefit and when the entity recognises any related restructuring costs.
(iii) Statutory defined contribution pension scheme
The employees and the Company also contribute to the National Social Security Fund, a national defined
contribution scheme. Contributions are determined by the country’s statutes and the Company’s contributions
are charged to profit or loss as incurred.
(o) Operating segments
The Company’s business is organised by regions (reporting segments) comprising Nairobi, Mount Kenya, Coast and
West Kenya. Business administration is by geographic region as the Company deals in only supply of electricity. There
are no inter-region sales. The Chief Operating Decision Maker (CODM) is the Executive Management Committee.
Regions derive their revenues from the distribution and retail of electricity purchased in bulk by the head office.
Region assets and liabilities comprise those operating assets and liabilities that are directly attributable to the
region or can be allocated to the region on a reasonable basis.
Capital expenditure represents the total cost incurred during the year to acquire assets for the regions that are
expected to be used during more than one period (property and equipment).
(p) Earnings per share
Basic and diluted earnings per share (EPS) data for ordinary shares are presented in the financial statements.
Basic EPS is calculated by dividing the profit for the year attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary
shares outstanding for the effects of all potentially dilutive ordinary shares, if any.
(q) Dividends
Dividends on ordinary shares are charged to reserves in the period in which they are declared. Proposed dividends
are not accrued for until ratified in an Annual General Meeting.
(r) Government grants
Government grants are not recognised until there is reasonable assurance that the Company will comply with the
conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company
recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government
grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current
assets are recognised as deferred revenue in the statement of financial position and transferred to profit or loss
on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose
of giving immediate financial support to the Company with no future related costs are recognised in profit or loss
in the period in which they become receivable.
NOTES (CONTINUED)
3. SIGNIFICANT ACCOUNTING POLICIES (continued)

(s) Recharge of costs to Rural Electrification Scheme
The Rural Electrification Scheme (RES) was established in 1973 by the Government of Kenya following an agreement
between the Government and East African Power & Lighting Company (now The Kenya Power and Lighting Company
Plc (KPLC). The Scheme was established with the specific objective of extending electricity to the rural areas
Recharge of costs to the RES is based on a formula determined by the Government of Kenya following an agreement
between it and East African Power & Lighting Company Limited, the predecessor to The Kenya Power & Lighting
Company Plc.
The power purchase costs recharge is calculated as a proportion of RES electricity unit sales to gross electricity
unit sales. The distribution costs recharge is calculated based on 2% and 4% of the total high voltage and low
voltage assets respectively in the books of RES at the close of the financial year.
Customer service costs recharge is calculated as a proportion of RES metered customers to total number of metered
customers. Administration costs recharge are calculated based on the proportion of RES electricity unit sales to
gross electricity unit sales.
(t) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand and short-
term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s
cash management.
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the process of applying the accounting policies adopted by the Company, the Directors make certain judgements
and estimates that may affect the amounts recognised in the financial statements. Such judgements and estimates
are based on historical experience and other factors, including expectations of future events that are believed
to be reasonable under the current circumstances. However, actual results may differ from those estimates. The
judgements and estimates are reviewed at each financial reporting date to ensure that they are still reasonable
under the prevailing circumstances based on the information available, and any revisions to such judgements and
estimates are recognised in the year in which the revision is made.
The effects of COVID-19 have resulted in certain judgements and estimates being significant in the current period
when they had not been in the past. This is due to the uncertainty introduced by the effects of the pandemic,
such as collection risk for customers which would then have an effect on impairment losses on trade and other
receivables.
(a) Significant judgements made in applying the Company’s accounting policies
The judgements made by the Directors in the process of applying the Company’s accounting policies that have
the most significant effect on the amounts recognised in the financial statements include:
i. Whether it is probable that future taxable profits will be available against which temporary differences can
be utilised;
ii. Classification of financial assets: whether the business model in which financial assets are held has as its
objective the holding of such assets to collect contractual cash flows or to both collect contractual cash
flows and sell the assets; and whether the contractual terms of financial assets give rise on specified dates to
cash flows that are solely payments of principal and interest; and whether credit risk on financial assets has
increased significantly since initial recognition.
(b) Key sources of estimation uncertainty
The key assumptions about the future, and other sources of estimation uncertainty that have a significant risk of
causing material adjustment to the carrying amount of assets and liabilities within the next financial year include;
NOTES (CONTINUED)
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED)

(b) Key sources of estimation uncertainty (Continued)
Deferred prepaid revenue
Revenue from prepaid customers is recognised when the customer purchases the tokens, before the customer
actually consumes the electricity. The amount of unused tokens to be adjusted at year end is estimated based on
historical customer trends.
Further details on deferred prepaid revenue are disclosed in Note 28(b).
Impairment losses on trade and other receivables
When measuring expected credit losses (ECL), the Company uses reasonable and supportable forward-looking
information, which is based on assumptions for the future movement of different economic drivers and how these
drivers will affect each other.
Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual
cash flows due and those that the Company would expect to receive, taking into account cash flows from collateral
and integral credit enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood
of default over a given time horizon, the calculation of which includes historical data, assumptions and expectations
of future conditions.
Further details on impairment losses on trade receivables are disclosed in Note 21(d).
Provisions
The Company faces exposure to claims and other liabilities. The claims and other liabilities normally take time to
be determined and therefore significant judgement is required in assessing the likely outcome and the potential
liabilities for such matters.
Further details on provisions are disclosed in Note 39.
Deferred income tax assets
Deferred income tax assets are recognised for all unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgment is required to
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of
future taxable profits together with future tax planning strategies. Details of the carrying value of recognised tax
losses at 30 June 2020 are provided in Note 27.
Pension and other post-employment benefits
The cost of defined benefit pension plans and other post-employment medical benefits is determined using
actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates
of return on assets, future salary increases, mortality rates and future pension increases. Due to the long-term
nature of these plans, such estimates are subject to significant uncertainty. Details of the defined benefit asset at
30 June 2020 are provided in Note 32.
Useful lives of property and equipment
The Company’s management determines the estimated useful lives and related depreciation charges for its
property and equipment. Management will increase the depreciation charge where useful lives are less than
previously estimated lives, or it will write-off or write-down obsolete items of property and equipment that have
been abandoned or sold.
Further details on useful lives of property and equipment are provided in Note 16.
Estimating the incremental borrowing rate (After 01 January 2019)
The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (‘IBR’) to measure lease liabilities. The IBR is the rate of interest that the Company would have to
pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar
value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company
‘would have to pay’. The Company estimates the IBR using observable inputs (such as market interest rates). This
estimate is effective from 1 January 2019.
Further details on the IBR are disclosed in Notes 2 (b) (i), 3 (h) and 29.
NOTES (CONTINUED)
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED)

(b) Key sources of estimation uncertainty (Continued)
Determination of the lease term for lease contracts with renewal and termination options
(Company as a lessee)
The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.
The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the
option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the
lease term if there is a significant event or change in circumstances that is within its control that affects its ability
to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold
improvements or significant customisation of the leased asset).
Further details on determination of lease term are disclosed in Note 3(h).
Property lease classification – Company as lessor
The Company has entered into fibre optic leases on its property portfolio. The Company has determined, based
on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a
major part of the economic life of the property portfolio and the present value of the minimum lease payments
not amounting to substantially all of the fair value of the fibre optic, that it retains substantially all the risks and
rewards incidental to ownership of these properties and accounts for the contracts as operating leases.
Amortisation of capital contribution
Capital contribution is the amount contributed by new customers and relates to assets such as cables used in
connecting the customer. Management assumes a useful life of five years for capital contribution assets and
therefore amortizing them over 5 years. An amortisation period of 5 years is used after considering, inter alia,
assumptions about the life cycle of the distribution network used to supply electricity to customers.
Further details on amortisation of capital contribution are disclosed in Note 26.
Provision for slow moving inventories
Provision for inventories is based on the aged report obtained from the system. This is also determined through
physical verification of the inventories during stock counts and also based on experience and the usage of the
products.
Further details on provisions for slow moving inventories are disclosed in Note 20.
NOTES (CONTINUED)
5. OPERATING SEGMENTS
For management purposes, the Company is currently organised into four administrative regions (reporting segments). These regions are the basis on which the Company
reports its primary information. The four regions comprise Nairobi, Coast, West Kenya and Mount Kenya. The table below shows the Company’s revenue, expenses, assets
and liabilities per region. The table also shows capital expenditure and depreciation by region for the year. There are no inter-segment sales and all revenue is from external
customers. Energy purchase and head office expenses are apportioned to various regions based on percentage unit sales
Nairobi West Kenya Coast Mount Kenya
2020
Region Region Region Region Total
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000
Revenue 64,082,659 24,566,371 23,041,594 21,567,978 133,258,602

Energy purchases (48,124,666) (15,749,890) (15,749,891) (7,874,945) (87,499,392)
Operating expenses (19,500,981) (14,048,119) (6,318,723) (7,966,648) (47,834,471)
Other income 2,927,106 2,016,523 979,563 1,464,295 7,387,487
Operating profit (615,882) (3,215,115) 1,952,543 7,190,680 5,312,226
Interest income 123,188

Finance costs (12,477,428)
Income tax credit 6,102,532
Loss for the year (939,482)
Assets 107,553,023 112,892,716 46,195,415 58,626,205 325,267,359

Liabilities 136,249,768 58,541,685 46,830,761 28,748,346 270,370,560
Capital expenditure (including intangible assets) 9,390,380 3,273,215 2,873,215 1,536,608 17,073,418
Depreciation/amortisation 7,877,967 4,882,121 2,390,622 2,718,783 17,869,493
The Kenya Power and Lighting Company Plc Annual Report and Financial Statements 2019/2020
89
NOTES (CONTINUED)
90
5. OPERATING SEGMENTS (CONTINUED)
There were no revenues deriving from transactions with a single external customer that amounted to 10% or more of the Company’s revenue. Finance income, finance costs
and tax expenses are not segment specific and are largely head office items and therefore have not been apportioned to the operating segments.
Nairobi West Kenya Coast Mount Kenya

Region
2019 Region Region Region Total
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000
Revenue 64,088,743 24,076,277 23,295,195 21,680,672 133,140,887

Energy purchases (49,583,764) (16,227,414) (16,227,414) (8,113,704) (90,152,296)
Operating expenses (16,644,859) (11,857,081) (5,732,722) (6,808,764) (41,043,426)
Other income 3,290,001 2,427,341 1,100,844 1,767,605 8,585,791
Operating profit 1,150,121 (1,580,877) 2,435,903 8,525,809 10,530,956
Interest income 117,900

Finance costs (10,315,242)
Income tax expense (72,061)
Profit for the year 261,553
Assets 123,654,066 107,615,641 40,193,316 56,541,903 328,004,926

Liabilities 155,763,817 51,638,192 38,689,645 25,682,410 271,774,064
Capital expenditure (including intangible assets) 7,493,017 4,890,798 6,623,048 2,526,489 21,533,352
Depreciation/amortisation 7,887,644 4,519,121 2,311,089 2,535,502 17,253,356

NOTES (CONTINUED)
5. OPERATING SEGMENTS (CONTINUED)
The Company’s core business in the four regions (reporting segments) continues to be the transmission, distribution and retail of electricity. There is no distinguishable component
of the Company that is engaged in providing an individual service that is subject to risks and returns that are different from those of other business segments.
The information on property and equipment details at net carrying amount is shown below:
Furniture
Land and Motor
2020 Lines Machinery equipment and Intangible assets Total
buildings* vehicles
other
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000
Transmission 434,701 21,181,473 1,726 - - - 21,617,900

Distribution 10,386,942 206,308,474 937,491 1,903,840 15,325,225 2,380,739 237,242,711
Total 10,821,643 227,489,947 939,217 1,903,840 15,325,225 2,380,739 258,860,611
2019
Transmission 415,368 20,008,761 26,802 - 121,062 - 20,571,993
Distribution 9,364,654 206,387,458 739,110 1,272,422 18,012,218 3,491,263 239,267,125
Total 9,780,022 226,396,219 765,912 1,272,422 18,133,280 3,491,263 259,839,118
* Includes freehold land and buildings and prepaid leases on leasehold land.
91
NOTES (CONTINUED)
6. FINANCIAL RISK AND CAPITAL MANAGEMENT

Information about the Company’s exposure to risks, its objectives, policies and processes for measuring and
managing such risks, as well as quantitative disclosure, is discussed in this Note. The management of capital is
also discussed.
The Company has an integrated risk management framework. The Company’s approach to risk management is based
on risk governance structures, risk management policies, risk identification, measurement and reporting. Three
types of risks are reported as part of the risk profile, namely operational, strategic and business continuity risks.
For the Company, a strategic risk is a significant unexpected or unpredictable change or outcome beyond what
was factored into the organisation’s strategy and business model which could have an impact on the Company’s
performance.
Business continuity risks are those events, hazards, variances and opportunities which could influence the
continuity of the Company.
One of the key risks for the Kenya Power and Lighting Company Plc, identified both under the operational and
strategic risk categories, is financial sustainability of the Company. The financial risks, as defined by IFRS 7, and
the management thereof, form part of this key risk area.
The Board of Directors has delegated the management of the Companywide risk to the Finance and Risk
Committee. One of the committee’s responsibilities is to review risk management strategies in order to ensure
business continuity and survival. Most of the financial risks arising from financial instruments are managed in the
centralised finance function of the Company.
The Company’s exposure to risk, its objectives, policies and processes for managing the risk and the methods used
to measure it have been consistently applied in the years presented, unless otherwise stated.
The Company has exposure to the following risks as a result of its financial instruments:
(a) Credit risk
The Company has exposure to credit risk, which is the risk that a counter party will be unable to pay amounts in full
when due. Credit risk mainly arises from electricity and other receivables, short-term deposits and bank balances.
Counterparty risk is the risk that a counterparty is unable to meet its financial and/or contractual obligations
during the period of a transaction. Delivery or settlement risk is the risk that counterparty does not deliver on its
contractual commitment on maturity date (including the settlement of money and delivery of securities).
Credit risk arising from short-term deposits and bank balances is low because the counter parties are financial
institutions with high credit ratings. Bank balances and bank deposits are thus low credit risk assets.
Management assesses the credit quality of each counterparty, taking into account its financial position, past
experiences and other factors. Individual risk limits are set based on internal ratings in accordance with limits set
by management. The utilisation of credit limits is regularly monitored.
The tables below detail the credit quality of the Company’s financial assets as well as the Company’s maximum
exposure to credit risk by credit risk rating grade:
NOTES (CONTINUED)
6. FINANCIAL RISK AND CAPITAL MANAGEMENT (CONTINUED)

(a) Credit risk (continued)
Gross carrying Loss Net

Notes
amount allowance amount
30 June 2020 Sh’000 Sh’000 Sh’000
Electricity receivables 21(b) 27,399,426 (15,495,920) 11,903,506

Prepaid fixed charge
21(b) 2,726,096 (2,726,096) -
receivable
Other receivables 25,799,315 (5,237,657) 20,561,658
Short-term deposits 22(a) 449,260 (6,519) 442,741
Bank balances 22(b) 3,458,368 (17,671) 3,440,697
59,832,465 (23,483,863) 36,348,602

30 June 2019
Electricity receivables 21(b) 23,550,199 (12,338,131) 11,212,068
21(b) 2,804,844 (2,804,844) -
receivable
Other receivables 23,977,300 (4,993,437) 18,983,863
Short-term deposits 22(a) 419,205 (9,740) 409,465
Bank balances 22(b) 4,296,526 (26,130) 4,270,396
55,048,074 (20,172,282) 34,875,792
The customers under the fully performing category are paying their debts.
The loss allowance represents the debt that is fully provided for in line with the expected credit loss model.
Trade receivables
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit
losses. The provision rates are based on days past due for various customer segments with similar loss patterns. An
impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses.
The provision rates are based on days past due for various customer segments with similar loss patterns. The calculation
reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that
is available at the reporting date about past events, current conditions and forecasts of future economic conditions.
Set out below is the information about the credit risk exposure on the Company’s electricity receivables and other
receivables using a provision matrix:
Total exposure at 30 June
0-30 31-90 >90 2020
Shs’000 Shs’000 Shs’000 Shs’000
Electricity receivables 9,484,601 3,622,097 14,292,728 27,399,426

Prepaid fixed charge receivable - - 2,726,096 2,726,096
Other receivables 7,820,450 3,146,784 14,832,081 25,799,315
Short term deposits 449,260 - - 449,260
Bank balances 3,458,368 - - 3,458,368
Total 21,212,679 6,768,881 31,850,905 59,832,465
NOTES (CONTINUED)

0-30 31-90 >90 2019
Shs’000 Shs’000 Shs’000 Shs ‘000
Electricity receivables 9,297,711 2,856,782 11,395,706 23,550,199

receivables
- - 2,804,844 2,804,844
Other les 18,381,947 973,614 4,621,739 23,977,300
Bank balances 4,296,526 - - 4,296,526
Total 32,395,389 3,830,396 18,822,289 55,048,074
Total impairment at 30 June

0-30 31-90 >90 2020
Shs’000 Shs’000 Shs’000 Shs’000
Electricity receivables 544,820 1,573,209 13,377,891 15,495,920

receivables
- 2,726,096 2,726,096
-
Other receivables 1,600,477 643,998 2,993,183 5,237,658
Bank balances 17,671 - - 17,671
Total 2,169,487 2,217,207 19,097,170 23,483,864
0-30 31-90 >90 2019

Shs’000 Shs’000 Shs’000 Shs’000
Electricity receivables 477,765 1,129,479 10,730,887 12,338,131

- 2,804,844 2,804,844
receivables -
Other receivables 583,808 833,322 3,576,307 4,993,437
Bank balances 26,130 - - 26,130
Total 1,097,443 1,962,801 17,112,038 20,172,282
Expected credit loss rate at: 0-30 days 31-90 days >90 days
30 June 2020 6% 44% 94%
30 June 2019 5% 43% 93%
Management of credit risk
Financial instruments are managed by the finance and commercial services functions.
Management of electricity receivables
The Company supplies electricity to customers in its licensed areas of supply. A large proportion comprises small
commercial and domestic customers who settle their accounts within twenty-one days after receipt of the bill.
The Company’s exposure to credit risk is influenced by the individual characteristics of each customer.
NOTES (CONTINUED)

Management of electricity receivables (continued)
In monitoring credit risk, customers are grouped according to their credit characteristics, including whether they
are large, small or domestic electricity users, profile, security (deposits and guarantees) held and payment history.
The main classes of electricity receivables are industrial, government ministries, local authorities, parastatals,
commercial and domestic customers. Electricity supply agreements are entered into with all customers. All
customers are required to deposit an amount equivalent to two times their monthly consumption being security
in the form of a cash deposit depending on the load supplied, subject to a minimum of two thousand five hundred
shillings. Industrial and large commercial customers have the option of providing a bank guarantee in lieu of a
cash deposit. Payment is enforced by way of disconnection of the supply if bills are not paid within twenty-one
days after billing. No interest is charged on balances in arrears.
The Company has well-established credit control procedures that monitor activity on customer accounts and allow
for remedial action should the customer not comply with payment terms. These procedures include the issue of
a notice for disconnection of supply, an internal collection process; follow up of the customer by telephone or
in person, negotiations of mutually acceptable payment arrangements and letters of demand. Non-payment will
result in disconnection of supply and the account’s closure if the disconnection is done and there is no payment
within three months. The legal collection process is pursued thereafter. The decision to impair overdue amounts
is assessed on the probability of recovery based on the customer’s credit risk profile.
Progress on the collection process is reviewed on a regular basis and if it is evident that the amount will not be
recovered, it is recommended for write-off in terms of the Company’s policy. The process of recovery continues
unless it is confirmed that there is no prospect of recovery or the costs of such action will exceed the benefits to
be derived. Amounts written off are determined after taking into account the value of the security held.
The Company evaluates the concentration of risk with respect to electricity receivables as low, as its customers
are located in all regions in Kenya and electricity is supplied to different classes of customers including individual
households, private industries, companies and Government institutions. The total cumulative provision for impairment
of electricity receivables at 30 June 2020 was Shs 15,496 million (2019: Shs 12,338 million).

The Company continues to install prepaid and automatic meters as strategies to minimise the risk of non-collection.
In addition, the following strategies are currently in operation and are largely successful in other high-risk areas
of non-paying customers. These include:
•• Disconnections,
•• Increased internal debt management capacity,
•• Use of debt collectors,
•• Focus on early identification and letters of demand higher security deposits.
(b) Liquidity risk

Liquidity risk is the risk that the Company will not have sufficient financial resources to meet its obligations when
they fall due or will have to do so at excessive cost. This risk can arise from mismatches in the timing of cash flows
from revenue and capital and operational outflows.
The objective of the Company’s liquidity management is to ensure that all foreseeable operational, capital expansion
and loan commitment expenditure can be met under both normal and stressed conditions. The Company has
adopted an overall balance sheet approach, which consolidates all sources and uses of liquidity, while aiming to
maintain a balance between liquidity, profitability and interest rate considerations.
The Company’s liquidity management process includes:
•• Projecting cash flows and considering the cash required by the Company and optimising the short-term
requirements as well as the long-term funding;
•• Monitoring statement of financial position liquidity ratios;
•• Maintaining a diverse range of funding sources with adequate back-up facilities;
•• Managing the concentration and profile of debt maturities; and
•• Maintaining liquidity contingency plans.
The table below summarises the maturity profile of the Company’s financial liabilities based on the remaining
period using 30 June 2020 as a base period to the contractual maturity date and the undiscounted cash flows:
NOTES (CONTINUED)
96
(b) Liquidity risk (Continued)
On 3 -12 1-5 >5
Less than 3 months
demand months years years Total
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

At 30 June 2020
Borrowings - 8,771,746 15,004,361 51,618,306 66,845,024 142,239,437

Trade and other
245,936 53,011,234 19,246,258 2,071,972 25,508,797 100,084,197
payables
Lease liabilities - - 443,048 981,130 493,463 1,917,641
Dividends payable 806,222 - - - - 806,222
1,052,158 61,782,980 34,693,667 54,671,408 92,847,284 245,047,497
At 30 June 2019
Borrowings - 10,156,305 18,768,015 45,849,627 46,765,774 121,539,721

Trade and other
309,412 67,748,962 12,648,099 2,172,108 19,763,085 102,641,666
payables
Dividends payable 811,045 - - - - 811,045
1,120,457 77,905,267 31,416,114 48,021,735 66,528,859 224,992,432
The Company has an established corporate governance structure and process for managing the risks regarding guarantees and contingent liabilities. All significant guarantees
issued by the Company are approved by the Board of Directors and are administratively managed by the treasury department. Updated guarantee schedules are compiled
every month.
NOTES (CONTINUED)

(c) Market risk
Market risk is the risk that the fair value or future cash flow of financial instruments will fluctuate because of changes
in foreign exchange rates, commodity prices and interest rates. The objective of market risk management policy is to
protect and enhance the statement of financial position and statement of comprehensive income by managing and
controlling market risk exposures within acceptable parameters and to optimise the funding of business operations
and facilitate capital expansion. The Company is exposed to the following risks:
(i) Currency risk
Currency risk arises primarily from purchasing imported goods and services directly from overseas or indirectly
via local suppliers and foreign borrowings. The Company is exposed to foreign exchange risk arising from future
commercial transactions and recognised assets and liabilities that are denominated in a currency other than the
Functional Currency of the Company.
The following table demonstrates the sensitivity to a reasonably possible change in the respective foreign currency/
Shs exchange rate, with all other variables held constant, on the Company’s loss/profit before income tax (due to
changes in the fair value of monetary assets and liabilities).
Appreciation/ Effect on loss/profit Effect on equity

Currency (depreciation) of before tax
exchange rate Shs million
Shs million
Year 2020
US$ +/-2% +/-2,017 +/-1,412
Euro +/-2% +/- 330 +/- 231
Year 2019
US$ +/- 2% +/-2,045 +/-1,432
Euro +/- 2% +/- 286 +/- 200
Management of currency risk

Exposure due to foreign currency risk is managed by recovering from customers the realised fluctuations in the
exchange rates not factored in the retail tariffs.
(ii) C
ommodity or price risk
Commodity or price risk arises from the fuel that is used for the generation of electricity.
Exposure due to commodity risk is managed by passing the cost of fuel used in generation to customers. In addition,
the Company has well-established credit control procedures that monitor activity on customer accounts and allow
for remedial action should the customer not comply with payment terms. These procedures include the issue of
a notice of disconnection of supply, an internal collection process; follow up of the customer by telephone or in
person, negotiations of mutually acceptable payment arrangements and letters of demand. Non-payment will result in
disconnection of supply and the customer’s account being closed. The legal collection process is pursued thereafter.
The decision to impair overdue amounts is assessed on the probability of recovery based on the customer’s credit
risk profile.
(iii) Interest rate risk
Interest rate risk is the risk that the Company’s financial condition may be adversely affected as a result of changes
in interest rate levels. The Company’s interest rate risk arises from short-term borrowings. Borrowings issued at
variable rates expose the Company to cash flow interest rate risk. Long-term borrowings issued at fixed rates expose
the Company to fair value interest rate risk.
The interest rate risk exposure arises mainly from interest rate movements on the Company’s borrowings.
Management of interest rate risk
To manage the interest rate risk, the Company monitors the changes in interest rates in the currencies in which loans
and borrowings are denominated. Additionally, the Company manages its interest rate risk by having a balanced
portfolio of fixed and variable rate loans and borrowings. Based on the various scenarios, the Company also manages
its fair value interest rate risk by using floating –to- fixed interest rate swaps, where applicable.
NOTES (CONTINUED)

(c) Market risk (continued)
Sensitivity analysis
The Company analyses its interest rate exposure on a dynamic basis by conducting a sensitivity analysis. This
involves determining the impact on profit or loss of defined rate shifts. The sensitivity analysis for interest rate risk
assumes that all other variables, in particular foreign exchange rates, remain constant. The calculation excludes
borrowing costs capitalised in terms of the Company’s accounting policy. The analysis has been performed on
the same basis as the prior year.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and
borrowings. With all other variables held constant, the Company’s profit before tax is affected through the impact
on floating rate borrowings, as follows:
Change in
Effect on loss/profit before tax Effect on equity
interest rate
Shs’ 000 Shs’ 000
2020
1% 870,000 652,500
5% 4,352,000 3,264,000
2019
1% 927,000 648,900
5% 4,636,000 3,245,200
The assumed movement in interest rate is based on the currently observable market environment.
Capital management
Capital managed by the Company is the equity attributable to the equity holders. The primary objective of the
Company’s capital management is to ensure that it maintains healthy capital ratios in order to support its business
and maximise shareholder value.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions.
To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or
issue new shares. No changes were made in the objectives, policies or processes during the years ended 30 June
2020 and 30 June 2019.
The Company monitors capital using a gearing ratio. This ratio is calculated as net debt divided by capital. Net
debt is calculated as total of interest-bearing loans and borrowings, less cash and cash equivalents.
2020 2019
Shs million Shs million
Interest-bearing loans and borrowings (Note 35 (b)) 118,733 111,383
Cash and cash equivalents (Note 35(b)) (3,884) 5,462
Net debt 114,849 116,845
Equity 54,896 56,231
Gearing ratio 209% 208%
In order to achieve this overall objective, the Company’s capital management, among other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. Further information on compliance of debt covenants is disclosed in Note 30 (d).
No changes were made in the objectives, policies or processes for managing capital during the years ended 30
June 2020 and 30 June 2019.
NOTES (CONTINUED)

(c) Market risk (continued)
Fair values of financial assets and liabilities
The management assessed that the fair values of the Company’s financial instruments approximate their carrying
amounts.
Fair value hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly;
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based
on observable market data.
None of the financial instruments is carried at fair value.
7. REVENUE
IFRS 15 Revenue from contracts with customers requires disclosure to reflect the nature, timing, amount and
uncertainty of its revenue within its disclosure requirements. The Company has determined that the disaggregation
using the below segments and the nature of revenues is appropriate for its circumstances.
(a) Revenue from contracts with customers
2020 2019
Shs’000 Shs’000
Electricity sales*
Post-paid 98,354,629 95,753,392
Prepaid 17,817,855 16,675,792
Foreign exchange adjustment 923,648 859,690
Fuel cost charge 16,162,470 19,852,013
133,258,602 133,140,887
*All electricity sales are recognised at point in time.
(b) Other income

Amortisation of capital contribution (Note 26) 5,517,821 6,438,529
Miscellaneous sales 727,741 1,156,202
Fibre optic leases 524,407 492,865
Transmission line maintenance revenue 58,058 73,269
Recovery from Last Mile customers 211,892 128,670
Reconnection charges 252,393 194,526
Rent 95,175 101,730
7,387,487 8,585,791
NOTES (CONTINUED)
8. COST OF SALES
2020 2019
Shs’000 Shs’000
Non-fuel costs (8(a)) 74,445,008 70,878,036

Foreign exchange costs 1,993,882 985,704
Fuel costs (8(b)) 11,060,502 18,288,556
87,499,392 90,152,296
(a) Non-fuel costs

The basic power purchase costs according to source/power producer were as follows:
2020 2019
Shs’000 Shs’000
KenGen* 41,017,077 36,895,402

OrPower 4 Inc. 12,462,373 12,585,395
Lake Turkana Wind Power 12,241,957 11,053,459
Iberafrica Power (E.A.) Company Limited 1,929,822 2,991,839
Rabai Power Limited 2,626,167 2,482,406
Thika Power Limited 2,076,340 2,142,951
Tsavo Power Company Limited 2,320,006 2,180,835
Gulf Power Limited 1,949,688 1,994,909
Triumph Power Generating Company Limited 2,403,840 2,583,674
Uganda Electricity Transmission Company Limited 1,923,341 1,161,866
Regen-Terem 311,883 193,681
Gura 177,082 94,683
Mumias Sugar Company 21,931 -
Ethiopia Electricity Power Company 35,847 15,844
Power Technology Solutions Limited 18,361 11,636
Chania Power Limited 12,316 4,082
Biojoule Kenya Limited 3,105 2,766
Imenti Tea Factory 6,668 1,997
Garissa Solar Power Plant 535,624 335,299
Strathmore University 7,602 2,093
Tanzania Electric Supply Company Limited 9 28
82,081,039 76,734,845
Less:
Foreign exchange surcharge (1,993,882) (985,704)
Recharged to RES (5,642,149) (4,871,105)
74,445,008 70,878,036
KenGen*- included in Non-fuel costs for KenGen are Capacity charges totalling to Shs 25,590 million (2019: Shs
21,825 million), Steam charges totalling 5,554 million (2019: 5,883 million), Energy charges totalling Shs 8,761
million (2019: Shs 8,012 million) and foreign exchange costs totalling Shs 1,112 million (2019: Shs 1,176 million).
NOTES (CONTINUED)
8 COST OF SALES (CONTINUED)

(b) Fuel costs
2020 2019
Shs’000 Shs’000
KenGen 4,145,435 10,478,560

Rabai Power Limited 2,191,772 1,327,974
Uganda Electricity Transmission Company Limited - 2,700,469
Thika Power Limited 654,770 1,360,733
Iberafrica Power (E.A.) Company Limited 682,433 995,115
Tsavo Power Company Limited 1,656,985 1,486,892
Off grid power stations 2,114,909 1,803,529
Gulf Power Limited 238,318 857,503
Triumph Power Generating Company Limited 192,287 320,955
11,876,909 21,331,730
Less:
Recharged to RES (816,407) (3,043,174)
11,060,502 18,288,556
The fuel cost is a pass though cost. During the year a recovery of Shs 16,162 million (2019: Shs 19,852 million)
was made.
(c) Units purchased
Analysis of interconnected power purchases by utility source in gigawatt-hours (GWh) is as follows:
2020 2019
GWh GWh
KenGen 8,237 8,276
OrPower 4 Inc 1,076 1,285
Rabai Power Limited 252 120
Lake Turkana Wind Power 1,238 1124
Thika Power Limited 50 107
Tsavo Power Company Limited 152 131
Iberafrica Power (E.A.) Company Limited 55 74
Uganda Electricity Transmission Company Limited 156 168
Gulf Power Limited 18 38
Off grid power stations 60 58
Triumph Power Generating Company Limited 15 16
Regen-Terem 32 20
Gura 21 12
Garissa Solar Power Plant 91 60
Ethiopia Electricity Power Company 5 2
Chania Power Limited 1 -
Imenti Tea Factory 1 -
Power Technology Solutions Limited 2 1
11,462 11,492
Less:
Recharged to RES (788) (726)
10,674 10,766
NOTES (CONTINUED)
8 COST OF SALES (CONTINUED)

Types of interconnected power sources;
Analysis of interconnected power purchases by utility source in gigawatt-hours (GWh) is as follows:
2020 2019
GWh GWh
Geothermal 5,352 5,033

Hydro 3,693 3,741
Thermal 822 1,240
Wind 1,284 1,192
Net imports 160 170
Others 151 116
11,462 11,492
Less:
Recharged to RES (788) (726)
10,674 10,766
The Company transmits excess units generated by Aggreko Limited to Uganda Electricity Transmission Company
Limited (UETCL) and Tanzania Electricity Supply Company Limited (TANESCO), whereas UETCL and TANESCO
transmit back their excess power to the Company at the same charge rate as that billed to them. The two transactions
have been effected in the accounts to give the net quantity.
9. NET OPERATING EXPENSES

(a) Network management
2020 2019
Shs’000 Shs’000
Salaries and wages 4,837,679 3,404,825
Depreciation 5,244,767 5,396,792
Wheeling charges – KETRACO* 2,668,667 2,613,861
Loss on disposal of fixed assets 956,068 767,027
Consumable goods 1,257,122 766,170
Staff welfare 80,136 70,842
Transport and travelling (861,122) (152,337)
Office expenses 1,528 2,331
Other costs 760,245 753,062
Net recharge of distribution and transmission costs to RES

(3,826,330) (2,817,037)
11,118,760 10,805,536
* These are fees levied by KETRACO for the use of their transmission lines to transport electricity from the
generators. The amount is determined by EPRA.
NOTES (CONTINUED)
9. NET OPERATING EXPENSES (CONTINUED)

(b) Commercial services
2020 2019
Shs’000 Shs’000
Depreciation 4,253,780 4,244,356
Advertising and public relations 131,560 208,446
Staff welfare 29,863 4,367
Transport and travelling 286,656 215,198
Consumable goods 15,182 25,980
Other costs 17,542 35,370
Net recharge of customer service costs to RES (2,511,988) (2,344,453)
6,659,415 7,674,136
(c) Administration

Depreciation 6,837,343 6,255,769
Staff welfare 1,538,253 1,690,193
Depreciation- ROU asset 285,237 -
Amortisation of intangible assets and operating lease
1,248,366 1,356,283
prepayment
Repairs and maintenance 1,709,301 891,729
Security and surveillance 859,931 911,106
Transport and travelling 657,034 642,652
Bank charges 376,218 561,080
Rents - 417,165
Licenses 7,710 176,508
Insurance 262,782 276,237
Public relations 31,788 (33,276)
Company electricity expenses 154,458 219,307
Training expenses and consumer services 137,685 24,097
Other consumable goods 135,890 85,356
Increase /(decrease) in leave obligation (Note 33(a)) 53,892 (50,230)
Increase in gratuity and leave allowance provisions
227,978 230,829
(Note 33 (b))
Consultancy fees 43,346 62,437
Directors’ emoluments 31,094 44,088
Auditor’s remuneration 19,600 40,214
Other Directors’ expenses 21,250 21,275
Allowance for inventories (Note 20) 3,654,490 61,099
Expense relating to leases of low-value assets (Note 19) 16,870 12,867
Other costs* 1,365,589 1,007,567
Retirement benefit plan debits/(credits) (Note 32) 48,269 (152,575)
28,094,221 22,327,770
Recharge of administration costs to RES** (1,305,612) (1,198,380)
26,788,609 21,129,390
*Other costs mainly relate to prepaid vendor commission, tax penalties, wayleaves, representation, AGM costs,
local authority taxes, utilities and contracted services which includes cleaning, service maintenance contracts
among others.
** Recharges to RES relate to operating costs apportioned to RES based on the predetermined formula developed
by the Government of Kenya.
NOTES (CONTINUED)
9. NET OPERATING EXPENSES (CONTINUED)

(d) Expected credit losses on financial assets
2020 2019
Shs’000 Shs’000
Provision for electricity debtors (Note 21(d)) 3,157,789 1,264,412

Provision for other receivables, bank deposits
and bank balances and guarantees 188,646 376,959
Writeback of provisions for prepaid fixed charge (78,748) (169,684)
Imperial Bank deposits write-back** - (37,323)
Increase in expected credit losses 3,267,687 1,434,364

**A full provision of Shs 322 million was made in the year ended 30 June 2016 for amount deposited with Imperial
Bank Limited. No recovery was made in the year 2020 (2019: Shs 37 million). Imperial Bank was placed under
receivership in 2015.
10. EMPLOYEE BENEFITS

2020 2019
Shs’000 Shs’000
Recharge of recurrent expenditure to capital jobs* (1,091,611) (1,639,182)
NSSF employer contributions 25,502 26,314
Pension costs – defined contribution 931,235 914,010
Pension credit - defined benefit scheme (Note 32) 48,269 (152,575)
17,490,847 15,826,156
Increase /(decrease) in leave pay provision (Note 33 (a)) 53,892 (50,230)

Increase in gratuity and leave allowance provisions
227,978 230,829
(Note 33 (b))
17,772,717 16,006,755
* Recharge of recurrent expenditure to capital jobs relates to the labour and transport costs incurred by staff on
capital jobs.
NOTES (CONTINUED)
11. NET FINANCE COSTS

(a) Finance income
2020 2019
Shs’000 Shs’000
Interest income on bank and other deposits 123,188 117,900

(b) Finance costs
Interest incurred on:

Loans (6,509,201) (7,126,180)
Bank overdrafts (1,323,654) (1,083,429)
Lease liabilities (Note 29) (152,489) -
Unrealised foreign exchange differences on loans (3,531,264) (1,001,441)
Late payment of invoices (707,305) (527,302)
Time value of money of RES receivable (Note 21 (b)) (251,585) (574,960)
Dividends on cumulative preference shares (1,930) (1,930)
(12,477,428) (10,315,242)
12. EXPENSES BY NATURE

The profit before income tax is arrived at after charging/(crediting):
2020 2019
Shs’000 Shs’000
Employee benefits (Note 10) 17,772,717 16,006,755
Depreciation of property and equipment (Note 16) 16,335,890 15,896,918
Finance costs (Note 11(b))* 12,477,428 10,315,242
Expected credit losses on financial assets (Note 9 (d))** 3,267,687 1,434,364
Amortisation of intangible assets (Note 18) 1,222,635 1,326,543
Loss on disposal of property and equipment (Note 35 (e)) 956,068 767,027
Rent expense - 417,165
Movement in leave provision (Note 33 (a)) 53,892 (50,230)
Movement in gratuity and leave allowance provision (Note 33 (b)) 227,978 230,829
Amortisation of leasehold land (Note 17) 25,731 29,740
Directors’ emoluments:
- Fees (Note 36 c (ii)) 4,800 4,300
- Other (Note 36 c (ii)) 26,294 39,788
Other Directors’ expenses 14,756 21,275
Auditor’s remuneration (Note 9 (c )) 19,600 40,214
Movement in provision for inventories (Note 20)*** 3,654,490 61,099
Retirement benefit credit (Note 32) 48,269 (152,575)

* Finance costs include unrealised foreign exchange losses Shs 3,531 million (2019: Shs 1,001 million) arising from
the depreciation of the Shs from 102/1USD in June 2019 to over 106/1USD in June 2020.
NOTES (CONTINUED)
12. EXPENSES BY NATURE (CONTINUED)

** Increase in provisions for electricity receivables is attributed to non-payment of bills due to effects of the
COVID-19 pandemic.
*** Enhanced impairment of inventories due to a change in estimation of slow moving and non- moving inventories
as disclosed in Note 20 to these financial statements.
13. (a) INCOME TAX (CREDIT)/EXPENSE

2020 2019
Shs’000 Shs’000
Statement of profit or loss
Income tax
Current income tax 61,871 95,313
Deferred income tax
Adjustment in respect of deferred tax for previous year (Note 27)

3,792 -
Movement for the year (Note 27) (6,168,195) (23,252)
Tax (credit)/charge (6,102,532) 72,061

(b) Reconciliation Of Income Tax (Credit)/Expense
Reconciliation of the income tax (credit)/expense and the accounting (loss)/profit multiplied by the statutory
income tax rate for 2019 and 2020:
2020 2019
Shs’000 Shs’000
(Loss)/profit before income tax (7,042,014) 333,614
Tax calculated at the statutory income tax rate of 25% (2019: 30%) (1,760,503) 100,084
Tax effect of adjustments on taxable income:
Expenses not deductible for tax purposes 136,499 121,252
Effect of tax rate changes (4,482,320) -
Prior year under provision for deferred tax 3,792 -
Income not subject to tax - (244,588)
Current income tax on separate sources of income - 95,313
Income tax (credit)/expense (6,102,532) 72,061
(c) C
urrent income tax recoverable
2020 2019
Shs’000 Shs’000
At start of year 71,108 (10,119)
Tax paid 87,034 176,540
Tax charge (61,871) (95,313)
At end of year 96,271 71,108
NOTES (CONTINUED)
14. EARNINGS PER SHARE

The calculation of basic and diluted earnings per share is based on continuing operations attributable to the
ordinary equity holders of the Company. There were no discontinued operations during the year. There were no
potentially dilutive ordinary shares as at 30 June 2020 and 2019. Diluted earnings per share is therefore the same
as basic earnings per share.
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings
per share are as follows:
2020 2019
Shs’000 Shs’000
(Loss)/Profit for the year attributable to owners of the Company (939,482) 261,553
The total number of shares and the weighted average number of shares for the purpose of calculating the basic
and diluted earnings are as follows:
2020 2019
Weighted average number of ordinary shares for the purpose of basic

1,951,467,045 1,951,467,045
and diluted earnings per share
Earnings per share is calculated by dividing the profit attributable to owners of the Company by the number of
ordinary shares.
2020 2019
Basic earnings per share (Shs) (0.48) 0.13

Diluted earnings per share (Shs) (0.48) 0.13
15. DIVIDENDS PER SHARE

Proposed dividends are accrued after they have been ratified at an Annual General Meeting. At the Annual General
Meeting to be held before 31 March 2021, the Directors will not recommend payment of dividend in respect of
the year ended 30 June 2020 (2019: Shs Nil).
There was no interim dividend paid in the year (2019: Shs Nil).
NOTES (CONTINUED)
108
16. PROPERTY AND EQUIPMENT
Freehold land Transmission Distribution Motor Furniture Work in

2020 Machinery Total
and buildings lines lines vehicles equipment Progress
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

Cost
At 1 July 2019 10,365,003 30,783,724 251,030,892 984,496 6,857,536 48,710,507 21,602,231 370,334,389
Work in progress additions - - - - - - 16,961,308 16,961,308
Transfers from work in progress

1,530,247 2,222,574 9,883,146 219,392 913,679 2,748,576 (17,517,614) -
Disposals - - (1,311,995) - - - - (1,311,995)
At 30 June 2020 11,895,250 33,006,298 259,602,043 1,203,888 7,771,215 51,459,083 21,045,925 385,983,702
Depreciation
At 1 July 2019 1,468,107 10,774,963 44,643,434 218,584 5,585,114 30,577,227 - 93,267,429
Charge for the year 272,514 1,049,862 9,128,535 46,087 282,261 5,556,631 - 16,335,890
Disposals - - (479,521) - - - - (479,521)
At 30 June 2020 1,740,621 11,824,825 53,292,448 264,671 5,867,375 36,133,858 - 109,123,798
Net carrying amount
At 30 June 2020 10,154,629 21,181,473 206,309,595 939,217 1,903,840 15,325,225 21,045,925 276,859,904
The Company has not pledged any of its assets as collateral for liabilities and any other restrictions on title.
NOTES (CONTINUED)
16 PROPERTY AND EQUIPMENT (CONTINUED)
Freehold land and Transmission Distribution Motor Furniture Work in

2019 Machinery Total
buildings lines lines vehicles equipment progress
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

Cost
At 1 July 2018 8,551,278 30,375,238 233,085,476 731,414 7,008,973 44,579,305 27,197,531 351,529,215
Transfer to leasehold (198) - - - - - (198)
Work in progress additions - - - - - - 20,459,242 20,459,242
Transfers from work in
1,814,654 408,486 19,287,071 253,082 159,548 4,131,701 (26,054,542) -
progress
Disposals (731) - (1,341,655) - (310,985) (499) - (1,653,870)
At 30 June 2019 10,365,003 30,783,724 251,030,892 984,496 6,857,536 48,710,507 21,602,231 370,334,389
Depreciation
At 1 July 2018 1,229,966 9,749,819 36,533,968 183,426 5,484,776 24,970,378 - 78,152,333
Transfer from leasehold 133 - - - - - 133
Charge for the year 238,008 1,025,144 8,611,918 35,158 379,342 5,607,348 - 15,896,918
Disposals - - (502,452) - (279,004) (499) - (781,955)
At 30 June 2019 1,468,107 10,774,963 44,643,434 218,584 5,585,114 30,577,227 - 93,267,429
Net carrying amount 8,896,896 20,008,761 206,387,458 765,912 1,272,422 18,133,280 21,602,231 277,066,960
The Company has not pledged any of its assets as collateral for liabilities and any other restrictions on title.
109
NOTES (CONTINUED)
17. LEASEHOLD LAND

2020 2019
Shs’000 Shs’000
Cost
At start of year 978,409 879,292
Additions - 99,120
Transfer from freehold - 198
Disposal (212,509) (201)
765,900 978,409
Amortisation
At start of year (95,283) (65,869)
Charge for the year (25,731) (29,740)
Transfer to freehold - 133
Charge on disposals 22,128 193
At end of year (98,886) (95,283)
Net carrying amount 667,014 883,126
18. INTANGIBLE ASSETS

Cost
At start of year 7,762,728 6,787,738
Additions 112,111 974,990
Disposal (37,985) -
At end of year 7,836,854 7,762,728
Amortisation
At start of year (4,271,465) (2,944,922)
Charge for the year (1,222,635) (1,326,543)
Charge on disposals 37,985 -
At end of year (5,456,115) (4,271,465)

Net carrying amount 2,380,739 3,491,263
19. RIGHT-OF-USE (ROU) ASSET

2020 2019
Shs’000 Shs’000
Cost
Balance on adoption of IFRS 16 (Note 2 (b) (i)) 1,303,412 -
Additions 176,455 -
At end of year 1,479,867 -
Depreciation
Charge for the year (285,237) -
At end of year (285,237) -
Net carrying amount 1,194,630 -
As a lessee, the Company leases spaces for sub-stations, offices and banking halls, depots, stores and IT equipment
among others. The Company also has certain leases of office equipment with low value. The Company applies
the ‘’lease of low-value assets’ recognition exemptions for these leases.
NOTES (CONTINUED)
19. RIGHT-OF-USE (ROU) ASSET (CONTINUED)

The following are the amounts recognized in profit or loss:
2020 2019
Shs '000 Shs '000
Depreciation expense of right-of-use assets (Note 19) 285,237 -
Interest expense on lease liabilities (Note 29) 152,489 -
Expense relating to leases of low-value assets ((Note 9 (c)) 16,870 12,867
454,596 12,867
The Company had total cash outflows for leases of Shs 400,530,000 in 2020 (2019: Shs 417,165,000). The Company
also had non-cash additions to right-of-use assets and lease liabilities of Shs 176,455,000 in 2020 (2019: Shs Nil).
The future cash outflows relating to leases that have not yet commenced are disclosed in Note 40.
20. INVENTORIES
2020 2019
Shs’000 Shs’000
General stores 4,167,240 5,007,732

Transformers 1,658,087 2,125,130
Conductors and cables 2,192,433 2,072,382
Meters and accessories 30,156 2,913
Poles 292,557 522,006
Fuel and oil 289,066 242,168
Motor vehicle spares 103,848 109,828
Engineering spares 12,816 13,082
8,746,203 10,095,241
Provision for impairment (3,914,831) (260,341)

4,831,372 9,834,900
Movements in the provisions for inventories
were as follows:
At start of year (260,341) (199,242)
Write off - -
Additional provision (Note 9(c))* (3,654,490) (61,099)
At end of year (3,914,831) (260,341)
General stores, engineering spares, fuel and oil, transformers and motor vehicle spares are carried at weighted
average cost.
* The Company’s Board of Directors approved a change in estimation of the provisioning of slow and non-moving
inventories, from a five-year period to a three-year period. This resulted in full impairment for all inventories aged
between 3 to 5 years amounting to Shs 3,213 million.
The change in estimation was necessitated by the following factors;
•• The high stock holding level of materials beyond the current level of connectivity
•• requirements, annual connectivity numbers having reduced from over 1 million to less than half a million.
•• The increasing risk of technological obsolescence of materials and equipment which are held as strategic
spares and critical connectivity materials.
•• A significant component of connectivity projects is now under last-mile which is funded by government and
implemented on a turn-key basis hence eliminating the need for high levels of stock holding.
•• Improving efficiency in the supply chain processes leading to shorter lead times as well as the use of framework
contracts for critical materials and strategic spares.
NOTES (CONTINUED)
20. INVENTORIES (CONTINUED)

The Board is of the view that the three-year period is appropriate and is an optimal balance between the delivery
lead times for materials and equipment, and reasonable periods for the utilisation given the dynamic utility
operating environment.
The movement in provision of inventories due to change in estimation is analysed as follows;
Impact of the
5 Years (previous 3 Years (new
change in
estimation) estimation)
estimation
Shs Million Shs Million Shs Million

Opening balance at 01 July 2019 260 260 -
Specific provision (294) (138) (156)
Slow Moving (407) (3,776) 3,369
Total provision at 30 June 2020 (701) (3,914) 3,213

Increase during the year (441) (3,654) 3,213
21. TRADE AND OTHER RECEIVABLES

(a) Non-current - Trade and other receivables
2020 2019
Shs’000 Shs’000
Prepayments-loan origination fee* 1,010,805 1,239,626

*This relates to arrangement costs charged upfront on long term loans extended by Standard Chartered Bank and
Rand Merchant Bank. The fee is amortised over the tenure of the loans.
(b) Current - Trade and other receivables
Electricity receivables (Note 21(c)) 27,399,426 23,550,199
Receivable from Government of Kenya-RES recurrent losses******
(Note 36 (b) (ii))
16,563,693 11,953,850
Prepayments-loan origination fee 1,279,834 1,472,470
Receivable from Government of Kenya**** (Note 36 (b) (ii) and
Note 37 )
559,560 1,403,965
VAT recoverable (Note 36 (b) (ii)) 819,446 1,948,120
Due from Ketraco** 1,576,156 1,510,433
Staff receivables 784,323 742,683
Stima loan deferred payment customers * 214,793 229,194
Rural Electrification Authority current account (Note 36 (b) (ii)) 248,564 248,564
GPOBA prepaid debtors*** 53,195 110,508

Energy Regulatory Levy - 138,518
Nuclear electricity project - 110
KEMP IDA grant 51,435 -
Other ***** 8,550,798 7,513,418

Gross trade and other receivables 58,101,223 50,822,032
Provision for credit losses (Note 21(d)) (23,459,673) (20,136,412)

Impairment of RES receivable (826,545) (574,960)
Net trade and other receivables 33,815,005 30,110,660
NOTES (CONTINUED)
21. TRADE AND OTHER RECEIVABLES (CONTINUED)

2020 2019
Shs’000 Shs’000
(b) Current - Trade and other receivables

Movement in impairment of RES receivable is as follows;
At start of year 574,960 -
Increase during year (Note 11 (b)) 251,585 574,960
At end of year 826,545 574,960
Trade and other receivables are non – interest bearing.
* Deferred payment customers balances represent debts outstanding under the Stima Loan Revolving Fund
Programme which was established in 2010 to facilitate credit access to the low-income segments of the market
for the purpose of electricity connection. It is funded by Agence Francaise de Development (AFD).
** This represents amounts due from Ketraco for local costs incurred in the construction of Sondu Miriu transmission
and distribution line and repayments in relation to 0.75% Japan Bank for International Corporation loan that was
transferred to Ketraco in 2018 upon signing of the Novation agreement.
***GPOBA prepaid debtors relate to the Global Partnership on Output Based Assistance (GPOBA) project for
customers with prepaid meters. This project aims to provide safe, legal and affordable electricity to informal
settlements. In 2015, the Company entered into an arrangement with the World Bank’s International Development
Association (IDA), which acts as an administrator of GPOBA. Under the agreement, the Company pre-invests its
own resources to provide electricity to informal settlements after which IDA reimburses the Company for every
connection done under this project.
The facility comprised a USD 10 million IDA loan and USD 5.15 million grant to be used as a subsidy for eligible
electricity connections, allowing low income households to pay Shs 1,160 per connection. The receivable amount
of Shs 53,195,000 (2019: Shs 110,508,000) is due from customers who received electricity connection under this
project. The Company automatically recovers Shs 100 from these customers every month towards the Shs 1,160
awarded to each customer.
****Receivable from Government of Kenya (GoK) relates to subsidies due to the Company to enhance universal
access to electricity through connectivity to the national grid. The Shs 559,560,000 (2019: Shs 1,403,965,000)
receivable from the GoK is part of a larger commitment by the GoK, to be financed partly through support from
the World Bank and the African Development Bank to enhance universal access to electricity. During the year,
the Company received Shs 1,096,750,000 as disbursements of which Shs 844,405,000 was used to offset the debt
and Shs 252,345,000 was fully utilized to grant accounting versus capital connect new customers.
***** Mainly include non-commercial clients, prepaid fixed charge, Integrated Customer Service (ICS) debtors
and last mile debtors. Included in other receivables is an amount of Shs 250,967,000 (2019: Shs 250,967,000)
deposited in Imperial Bank Limited which was placed under receivership in 2015. No recovery was made in the
year 2020 (2019: Shs 37,323,000). The rest of the balance is fully provided for.
****** KPLC is the management agent for RES on behalf of Ministry of Energy (MOE). The Schemes of RES are
generally sub-economic since their operational and maintenance costs exceed their revenue. The resultant
accumulated deficit is recoverable from the Government of Kenya (GOK) as stipulated in the 1973 Mercado
agreement signed between KPLC and the GOK through the MOE
NOTES (CONTINUED)
21. TRADE AND OTHER RECEIVABLES (CONTINUED)

(c) Electricity receivables
<30 days 30-90 days >90 days Total
Shs’000 Shs’000 Shs’000 Shs’000

2020
Gross 9,484,601 3,622,097 14,292,728 27,399,426
Impairment (544,820) (1,573,209) (13,377,891) (15,495,920)
Net 8,939,781 2,048,888 914,837 11,903,506
2019
Gross 9,297,711 2,856,782 11,395,706 23,550,199
Impairment (477,765) (1,129,479) (10,730,887) (12,338,131)
Net 8,819,946 1,727,303 664,819 11,212,068
The increase in the gross carrying amount of electricity receivables by Shs 3,849 million up from 2019 is attributed
to low collections mainly due to the effects of Covid-19 which resulted in an increase in expected credit losses
on electricity receivables by Shs 3,158 million. Information about the credit exposure is disclosed in Note 6 (a).
(d) Movement in the expected credit losses for trade and other receivables is as follows;
Electricity Prepaid fixed Other
Total
receivables charge receivables
Shs’000 Shs’000 Shs’000 Shs’000

2020
At start of year (12,338,131) (2,804,844) (4,993,437) (20,136,412)
Additional provision (Note 9 (d)) (3,157,789) - (244,220) (3,402,009)
Write back - 78,748 - 78,748
Write offs - - - -
At end of year (Note 21(b)) (15,495,920) (2,726,096) (5,237,657) (23,459,673)

2019
At start of year (9,732,944) (2,974,528) (1,300,248) (14,007,720)
Impact of IFRS 9 adjusted through
retained earnings (1,524,891) - (3,376,341) (4,901,232)
Additional provision (Note 9 (d)) (1,264,412) - (354,171) (1,618,583)
Write back - 169,684 37,323 207,007
Write offs 184,116 - - 184,116
At end of year (Note 21(b)) (12,338,131) (2,804,844) (4,993,437) (20,136,412)
NOTES (CONTINUED)
22. SHORT-TERM DEPOSITS, BANK AND CASH BALANCES
2020 2019
Shs’000 Shs’000
(a) Short-term deposits

Housing Finance Company of Kenya Limited 446,648 416,593
The Co-operative Bank of Kenya Limited 2,612 2,612
449,260 419,205
Expected credit losses- adjusted through retained earnings - (6,565)
Expected credit losses- charge for the year (6,519) (3,175)
442,741 409,465
The average effective interest rate on the short-term deposits for the year ended 30 June 2020 was 7.09% (2019: 6.94%).
Movement in the expected credit losses is as follows;
2020 2019
Shs’000 Shs’000

(Decrease)/increase in provision (3,221) 3,175
At end of year 6,519 9,740
(b) Bank and cash balances
Cash at bank 3,458,368 4,296,526
Cash on hand 853 14,100
3,459,221 4,310,626
Expected credit losses (17,671) (26,130)
3,441,550 4,284,496
Overdraft (8,771,746) (10,156,305)
(5,330,196) (5,871,809)
Movement in the expected credit losses is as follows;
At end of year 17,671 26,130
23. SHARE CAPITAL

Authorised:
2,592,812,000 ordinary shares of Shs 2.50 each 6,482,030 6,482,030
Issued and fully paid:
1,951,467,045 ordinary shares of Shs 2.50 each 4,878,667 4,878,667
24. SHARE PREMIUM

The share premium arose from the redemption of the 7.85% redeemable non-cumulative preference shares and a
rights issue in the year 2011 at a price of Shs 207.50 giving rise to a share premium of Shs 14,367 million.
A further premium was received from the rights issue of 488,630,245 ordinary shares of Shs 2.50 each at a price
of Shs 19.50, hence resulting to a share premium of Shs 17 per share or a total share premium of Shs 8,307 million.
The transaction costs amounting to Shs 653 million were netted off against the share premium.
NOTES (CONTINUED)
25. RETAINED EARNINGS

The retained earnings balance represents the amount available for distribution to the shareholders of the Company.
26. DEFERRED INCOME

Deferred income relates to capital contributions received from electricity customers for the construction of
electricity assets. The amounts are amortised through profit or loss on a straight-line basis over the useful life of
the related asset used to provide the ongoing service.
2020 2019
Shs’000 Shs’000
At start of year 19,038,659 21,701,530
Additional contributions 2,420,992 3,775,658
Recognised as income (Note 7(b)) (5,517,821) (6,438,529)
At end of year 15,941,830 19,038,659
Maturity analysis:
Non-current 12,900,609 15,103,027
Current 3,041,221 3,935,632
At end of year 15,941,830 19,038,659
27. DEFERRED INCOME TAX

At start of year 26,886,643 28,904,087
Credit to other comprehensive income (131,854) (499,408)
Impact of IFRS 9 Day 1 adjustment - (1,494,784)
Impact of IFRS 16 Day 1 adjustment (Note 2 (b) (i)) 419 -
Effect of tax rate changes (Note 13 (a)) (4,482,321) -
Charge to profit or loss (Note 13 (a)) (1,682,082) (23,252)
At end of year 20,590,805 26,886,643

Deferred income tax balance is analysed as follows
Impact of (Credited)/ At 30
At July Credited Effect of tax
2020 adoption of June
Charged to rate changes
2019 to OCI
IFRS 16 profit or loss 2020
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

Deferred income tax
liabilities
Property and
equipment 49,287,504 - (380,546) - (8,214,584) 40,692,374
Unrealised foreign
exchange loss (1,985,027) - (888,006) - 330,838 (2,542,195)
Right of use asset 298,658 298,658
Retirement benefit
asset 330,902 - (12,067) (131,854) (55,149) 131,832
47,633,379 - (981,961) (131,854) (7,938,895) 38,580,669
NOTES (CONTINUED)
27. DEFERRED INCOME TAX (CONTINUED)

Deferred income
tax assets
Lease liabilities - - (308,376) - - (308,376)
Provisions (6,566,764) 419 (1,971,714) - 1,091,559 (7,446,500)
Tax losses (14,190,088) - 1,590,085 - 2,365,015 (10,234,988)
(20,756,852) 419 (690,005) - 3,456,574 (17,989,864)
Tax charge on excess

accelerated capital
-
allowances (current 10,116 (10,116) - - -
year)
Net deferred income

tax liabilities 26,886,643 419 (1,682,082) (131,854) (4,482,321) 20,590,805
Impact of (Credited)/
At July 2018 adoption charged Credited At 30 June
of to OCI 2019
2019 Restated to profit or
IFRS 9 loss Shs’000 Shs’000
Shs’000
Shs’000 Shs’000
Deferred income tax liabilities

Property and equipment 50,395,688 - (1,108,184) - 49,287,504
Unrealised foreign exchange loss (1,959,270) - (25,757) - (1,985,027)
Retirement benefit asset 784,538 - 45,772 (499,408) 330,902
49,220,956 - (1,088,169) (499,408) 47,633,379

Deferred income tax assets
Provisions (4,621,793) (1,494,784) (450,187) - (6,566,764)
Tax losses (15,750,825) - 1,560,737 - (14,190,088)
(20,372,618) (1,494,784) 1,110,550 - (20,756,852)
Tax charge on excess accelerated

-
capital allowances (current year) 55,749 (45,633) - 10,116
Net deferred income tax
28,904,087 (1,494,784) (23,252) (499,408) 26,886,643
liabilities
As at 30 June 2020, the Company had accumulated tax losses amounting to Shs 40,940 million (2019: Shs 47,230
million).
NOTES (CONTINUED)
28. TRADE AND OTHER PAYABLES

(a) Non-current liabilities
2020 2019
Shs’000 Shs’000
Capital contribution - on-going projects** 8,358,690 7,806,971
Customer deposits* 6,059,632 6,062,498
Capital contributions-projects not commenced 4,880,854 4,729,896
Deferred creditor (Fibre optic) 272,588 409,462
RES current account - capital (Note 36 (b) (iii)) 237,634 159,351
Donor funded revolving fund 164,463 164,553
Electrification of health facilities 441,659 -
Sub-Station Installation-GOK Funded Account 1,425,000 900,000
Nuclear electricity project 11,917 -
Other payables 1,635,236 1,702,461
23,487,673 21,935,192
*Customer deposits are held as a non-current liability because the Company will continue to offer services to the
customers for the foreseeable future and the customers are not expected to discontinue their use of electricity in
the short run. In addition, the customer deposits are a security for the electric meters supplied to the customer
for long-term electricity supply.
**Capital contributions for on-going projects relate to customer contributions for capital works not completed.
(b) Current liabilities
2020 2019
Shs’000 Shs’000
KenGen (Note 36 (e)) 24,008,924 19,257,959
Other suppliers’ accounts 9,061,370 12,036,011
Other electricity suppliers 20,578,626 21,146,774
Other payables 11,762,904 10,319,188
RES current account - Last Mile Project (Note 36 (b) (iii)) 3,824,511 4,902,232
RES – intercompany (Note 36 (b) (iii)) 264,686 489,689
Rural Electrification Authority Levy** ((Note 36 (b) (iii))) 11,365,662 7,177,160
KEMP IDA grant*** - 475,155
Ketraco wheeling charge (Note 36 (f)) 5,921,975 3,863,672
Ministry of Finance (Note 36 (b) (iii)) 875,041 875,041
Prepaid revenue**** 245,936 309,412
Street lighting project (Note 36 (b) (iii) and Note 37) 203,078 23,328
Energy Regulatory Levy 94,964 -
Aggreko 197,667 192,058
Deferred creditor (Fibre optic) 73,784 60,185
88,479,128 81,127,864
Provision for impairment (Note 28 (c )) 23,578 68,298
88,502,706 81,196,162
**The Rural Electrification Authority Levy relates to levy charge for Feb 2018 to June 2020 to be remitted to the
Rural Electrification Authority on collection.
*** The Company receives funding from the World Bank through Credit No.5587-KE to support electrification
projects. The total amount received as at 30 June 2020 was Shs 11,128,491,000 (2019: Shs 7,958,684,000) and
Shs 11,179,926,000 (2019: Shs 7,483,529,000) has been spent on the projects.
**** Prepaid revenue represents unearned income on prepaid meters. Based on historical trends, management
derives an estimate of the value of prepaid power units not consumed as at the end of the financial year.
Non-current trade and other payables are non-interest bearing.
NOTES (CONTINUED)
28. TRADE AND OTHER PAYABLES (CONTINUED)

(c) Movement in the provision for impairment for the Company guaranteed staff loans is as follows;
2020 2019
Shs’000 Shs’000
At end of year (Note 28 (b)) 23,578 68,298
29. LEASE LIABILITIES

Lease liabilities include the net present value of the fixed lease payments discounted using the incremental
borrowing rate. On adoption of IFRS 16, the Company recognised lease liabilities in relation to leases which had
previously been classified as ‘operating leases’ under IAS 17 leases.
2020 2019
Shs’000 Shs’000
Balance on adoption of IFRS 16 (Note 2 (b) (i)) 1,302,014 -
Additions for the year 176,454 -
Interest charge (Note 11(b)) 152,489 -
Payment of interest (152,489) -
Payment of principal (248,040) -
1,230,428 -
The carrying amount of the current portion is Shs 314,948,000 while the non-current portion is Shs 915,480,000
The maturity analysis of undiscounted lease liabilities is disclosed in Note 6 (b).
NOTES (CONTINUED)
120
30. BORROWINGS
Currency Interest rate End date 2020 2019
Shs’000 Shs’000
Commercial borrowings
Standard Chartered Bank Loan USD 4.15% + Libor 23/06/2026 29,360,236 32,000,187
Standard Chartered Bank Loan Shs CBR + 4% 23/06/2023 9,108,000 12,144,000
Rand Merchant Bank Long-term Loan USD 5.75% + Libor 30/06/2021 2,485,523 4,773,921
Equity Bank USD Medium Term Loan USD 4.5% + Libor 30/09/2025 4,905,065 5,567,022
Stanbic Loan Shs 1.5% + CBR 14/09/2020 2,000,000 2,000,000
Rand Merchant Bank Medium Term Loan USD 7.95% 26/09/2025 6,835,187 7,160,881
Stanbic Medium Term Loan USD 5.25% + Libor 31/12/2019 - 352,100
Standard Chartered Bank Money Market Loan Shs 12% (cbr+4%) 30/05/2021 800,000 800,000
GOK/Agence Francaise De development EUR 2.5% + Libor 31/12/2030 1,201,400 1,163,056
56,695,411 65,961,167
On-lent borrowings
GOK/IDA Kenya Electricity Expansion Project USD 3.00% 01/03/2035 13,007,200 12,491,475
GOK/CHINA EXIM BANK (USD 109,414,646) USD 3.00% 28/08/2034 14,019,010 11,192,932
GOK/IDA 3958 & 4572 KE ESRP USD 4.50% 01/09/2029 9,372,266 9,456,396
GOK/NORDEA EUR 3.00% 15/09/2026 2,433,911 2,356,230
GOK/EIB 23324 KE ESRP EUR 3.97% 20/07/2025 2,071,649 2,370,171
GOK/Agence Francaise de Development EUR 4.50% 30/03/2025 1,270,712 1,341,988
GOK/ Nordic Development Fund 435 ESRP EUR 4.50% 15/09/2026 488,069 545,183
KPLC/AFD Revolving Fund Loan EUR 2.70% 31/07/2034 2,679,122 348,917
GOK/EIB – Olkaria Loan EUR 4.00% 25/11/2019 - 109,535
GOK/IDA 5587 KE LOAN USD 2.00% 15/11/2052 2,692,981 1,275,653
GOK/IDA 2966 KE loan Shs 7.70% 30/06/2022 188,349 188,349
GOK/AFD Transformer Densification EUR 3.20% 31/07/2034 856,398 694,331
Accrued interest (Note 35 (b)) 4,186,515 3,051,089
53,266,182 45,422,249
Total borrowings 109,961,593 111,383,416
NOTES (CONTINUED)
30. (a) BORROWINGS (CONTINUED)

2020 2019
Shs’000 Shs’000
Total borrowings 109,961,593 111,383,416

Less: amounts repayable within 12 months (15,004,361) (18,768,015)
Non-current 94,957,232 92,615,401
(d) Analysis of borrowings by currency

Shs USD Euros Total
Shs' 000 Shs' 000 Shs' 000 Shs' 000
2020
Loans 23,118,051 75,842,282 11,001,260 109,961,593
2019
Loans 18,183,438 84,270,567 8,929,411 111,383,416
(e) Maturity of borrowings
2020 2019
Shs’000 Shs’000
Due within 1 year 15,004,361 18,768,015

Due between 1 and 2 years 15,218,333 13,451,696
Due between 2 and 5 years 32,310,132 32,397,931
Due after 5 years 47,428,767 46,765,774
109,961,593 111,383,416
(f) Compliance with debt covenants
During the year, the Company met all its loan repayment obligations. The Company was in compliance with all
financial covenants during the year except for the Current Ratio covenant relating to the below borrowings from
Standard Chartered Bank, Rand Merchant Bank and Agence Francaise de Development. This covenant compares
the current assets with the current liabilities.
Current Non-current Total
Shs’000 Shs’000 Shs’000
Standard Chartered Bank USD 350m loan 3,961,302 25,398,934 29,360,236

Standard Chartered Bank USD 150m loan 3,036,000 6,072,000 9,108,000
Rand Merchant Bank USD Long-term Loan 2,485,523 - 2,485,523
Rand Merchant Bank USD Medium Term Loan 1,242,761 5,592,426 6,835,187
Agence Francaise de Development 60,070 1,141,330 1,201,400
10,785,656 38,204,690 48,990,346
As per the financial

Covenant requirement
statements
For Standard Chartered Bank, Rand Merchant
Bank and AFD
Current assets (Shs’000) 43,035,765
Current liabilities (Shs’000) 117,631,460
Current ratio 1 0.37
NOTES (CONTINUED)
30. BORROWINGS (CONTINUED)

(f) Compliance with debt covenants (continued)
Paragraph 74 of IAS 1 ‘Presentation of financial statements’ requires the reclassification of the non-current portion
of borrowings with covenant breaches to current. This reclassification has not been performed in the financial
statements because the Company obtained waivers before the end of the reporting period, 30 June 2020 which
gave consent of extension of the breach from 30 June 2020 to 30 June 2021.
Through a letter from Standard Chartered Bank dated 24 June 2020, the lender communicated consent of extension
of the breach from 30 June 2020 to 30 June 2021.
Through a letter from Rand Merchant Bank dated 24 June 2020, the lender communicated that the breach would
be condoned from 30 June 2020 to 30 June 2021 while reserving the rights under the facility agreement.
Through a letter from Agence Francaise de Development Bank dated 29 June 2020, the lender communicated that
it agreed to waive its right to declare the Event of Default solely with respect to the said non-compliance with the
Current Ratio anticipated as 30th June 2020 for a 12-month period.
31. PREFERENCE SHARES

2020 2019
Shs’000 Shs’000
Authorised, issued and fully paid:
350,000 - 7% cumulative preference shares of Shs 20 each 7,000 7,000
1,800,000 - 4% cumulative preference shares of Shs 20 each 36,000 36,000
43,000 43,000
The preference shares are treated as financial liabilities because the Company has a contractual obligation to pay
preference dividends on the shares.
32. RETIREMENT BENEFIT ASSET

The Company operates a funded defined benefit plan (the “DB Scheme”) for its employees that is established under
irrevocable trust. The DB Scheme was closed to new members and future accrual of service as from 1 July 2006.
Currently, no contributions are payable by employees to the DB Scheme and the Company is on a contribution
holiday. DB Scheme assets are invested in a variety of asset classes comprising of government securities, fixed
and time deposits, corporate bonds, equities and offshore investments. A separate defined contribution scheme
(the “DC Scheme”) was setup in respect of service from 1 July 2006. The contributions to the DC Scheme are
accounted separately in the Company’s statement of profit or loss.
The benefits provided by the DB Scheme are based on a formula taking into account years and complete months
of service with the employer since joining the scheme to the closing date. Under the DB Scheme, the employees
are entitled to retirement benefits varying between 3 and 5 percent of final pensionable emoluments on attainment
of the retirement age.
The DB Scheme is governed by the Retirement Benefits Act, 1997. This requires that an actuarial valuation be
carried out at least every three years for the DB Scheme. The most recent actuarial valuation of the DB Scheme
was carried out at 31 December 2019 using the Projected Credit Method, by an independent qualified actuary.
For the purposes of calculating the actuarial liability under the Scheme as at 30 June 2020, the Company engaged
the services of an actuary, Zamara Actuaries, Administrators & Consultants Ltd. The Actuary “rolled forward” the
results of the actuarial valuation as at 31 December 2019 to 30 June 2020.
The Company is exposed to the following actuarial risks:
(i) Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference
to high quality corporate bond yields; if the return on plan assets is below this rate, it will create a plan deficit.
Currently, the plan has a relatively balanced investment in investment properties, government securities, equity
investments, corporate bonds and short-term deposits. Due to the long-term nature of the DB Scheme liabilities,
management considers it appropriate that a reasonable portion of the plan assets should be invested in equity
securities and in real estate to leverage the return generated by the DB Scheme.
NOTES (CONTINUED)
32. RETIREMENT BENEFIT ASSET (CONTINUED)

(ii) Interest risk
A decrease in bond interest rate will increase the plan liability; however, this will be partially offset by an increase
in the return on the plan’s debt investments.
(iii) Longevity risk
Benefits in the DB Scheme are payable on retirement, resignation, death or ill-health retirement. The actual cost
to the Company of the benefits is therefore subject to the demographic movements of employees.
(iv) The benefits are linked to salary and consequently have an associated risk to increases in salary.
The principal assumptions used for the purposes of the actuarial valuations were as follows:
2020 2019
Discount rate 13.0% 12.9%

Expected rate of return on assets 13.0% 12.9%
Future salary increases 5.0% 5.0%
Retirement age 60 years 60 years
The updated position arising from the Company’s obligation in respect of its DB Scheme is as follows:
The current service costs and the net interest expense for the year are included in administration expenses in profit
or loss (Note 9(c)).
The measurement of the defined benefit liability is included in other comprehensive income. The amounts recognised
in profit or loss and other comprehensive income in respect of the defined benefit plan are as follows:
2020 2019
Shs’000 Shs’000
Current service cost 179,011 159,290

Interest cost on defined benefit obligation 1,737,236 1,668,672
Interest income on plan assets (2,378,443) (2,302,198)
Interest on the effect of the asset ceiling 510,465 321,661
Net expense/(income) recognised in profit or loss (Note 10) 48,269 (152,575)
Net actuarial gains (158,232) (501,762)

Return on plan assets (excluding amount in interest cost) 1,525,329 1,146,156
Changes in effect of asset ceiling (excluding amounts in interest cost) (839,683) (1,020,300)
Recognised in other comprehensive income 527,414 1,664,694
Total Net actuarial losses 1,054,828 1,288,788
NOTES (CONTINUED)

The amount included in the statement of financial position arising from the Company's obligation in respect of
its defined benefit retirement plan is as follows:
2020 2019
Shs’000 Shs’000
Fair value of plan assets 18,535,455 19,192,751
Present value of funded defined benefit obligation (14,380,254) (14,132,649)
4,155,201 5,060,102
Limit on defined benefit asset (3,627,873) (3,957,091)
Present value of funded defined benefit asset 527,328 1,103,011
The reconciliation of the amount included in the statement
of financial position is as follows:
2020 2019
Shs’000 Shs’000
Net asset at the start of the year 1,103,011 2,615,130
Net income recognised in profit or loss (Note 9(c)) (48,269) 152,575
Amount recognised in other comprehensive income (527,414) (1,664,694)
Present value of funded defined benefit asset 527,328 1,103,01
Movement in the present value of defined benefit funded
obligations in the current year is as follows:
2020 2019
Shs’000 Shs’000
At start of year 14,132,649 14,167,143

Current service cost 179,011 159,290
Interest cost on obligation 1,737,236 1,668,672
Actuarial loss (158,232) (501,762)
Benefits paid (1,510,410) (1,360,694)
At end of year 14,380,254 14,132,649
Movement in the fair value of defined benefit scheme assets is as follows;

At start of year (19,192,751) (19,397,402)
Interest income on plan assets (2,378,443) (2,302,199)
Return on plan assets, excluding amount in interest income 1,525,329 1,146,156
Benefits paid 1,510,410 1,360,694
Prior year understatement for asset values - -
At end of year (18,535,455) (19,192,751)
The fair value of the plan assets at the end of the reporting period for each category, are as follows:
2020 2019
Shs’000 Shs’000
Property 7,365,747 7,359,495

Debt instruments 6,300,879 6,741,088
Equity instruments 3,609,567 3,183,251
Others 1,259,262 1,908,917
Total scheme assets 18,535,455 19,192,751
NOTES (CONTINUED)

The fair values of the above equity and debt instruments are determined based on quoted market prices in active
markets whereas the fair values of properties are not based on quoted market prices in active markets. This treatment
has been implemented during the current and prior years.
The Company also contributes to the statutory National Social Security Fund (NSSF). This is a defined contribution
scheme registered under the National Social Security Act. The Company’s obligations under the scheme are limited
to specific contributions legislated from time to time and are currently at Shs 200 per employee per month.
Sensitivity analysis
A sensitivity analysis was performed on the model and if all other key assumptions remained unchanged while the
discount decreased by 1%, the result would have been Shs 865 million increase in the retirement benefit asset.
33. PROVISIONS
This is estimated provision for monetary liability for employees’ accrued annual leave entitlement and present
value of employee gratuity benefits.
2020 2019
Shs’000 Shs’000
Increase /(decrease) in provisions (Note 10) 53,892 (50,230)
At end of year 451,662 397,770

(b) Gratuity and leave allowance provision
Gratuity paid during the year (60,644) (120,196)
Increase in provisions (Note 10) 227,978 230,829
At end of year 582,895 415,561
Total provisions 1,034,557 813,331
34. DIVIDENDS PAYABLE

Dividends payable on ordinary shares 806,222 811,045
These relate to unclaimed dividends payable to different ordinary shareholders.
The movement in the dividend payable account is as follows:

2020 2019
Shs’000 Shs’000

Declared during the year 1,930 1,930
Paid during the year (6,753) (52,892)
At end of year 806,222 811,045
NOTES (CONTINUED)
35. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of operating profit to cash generated from operations
2020 2019
Shs’000 Shs’000
Profit before tax (7,042,014) 333,614
Depreciation of property and equipment (Note 16) 16,335,890 15,896,918
Amortisation of intangible assets (Note 18) 1,222,635 1,326,543
Amortisation of leasehold land (Note 17) 25,731 29,740
Amortisation of ROU (Right-of-use) asset (Note 19) 285,237 -
Amortisation of capital contribution (Note 7 (b)) 5,517,821 6,438,529
Loss on disposal of property and equipment (Note 35 (e)) 956,068 767,027
Finance income (Note 11 (a)) (123,188) (117,900)
Finance costs (Note 11 (b)) 12,362,124 10,403,555
Interest expense on lease liabilities (Note 11 (b)) 152,489 -
Movement in deferred income recognised as income (Note 26) 920,708 398,675
Movement in provision for leave pay, gratuity and leave allowance
281,870 180,599
(Note 33)
Movement in provisions for credit losses on short-term deposits
(3,221) 3,175
(Note 22 (a))
Movement in provisions for credit losses on bank balances ((Note
(8,459) 4,650
22 (b))
Movement in provisions for credit losses on trade and other
3,279,367 1,227,460
receivables (Note 9 (d))
Movement in provision for slow moving inventories (Note 20) 3,654,490 61,099
Retirement benefit plan credits (Note 9 (c)) 48,269 (152,575)
Unrealised foreign exchange losses on cash and cash equivalents (37,186) 88,313
Working capital changes:
Inventories 1,349,038 (150,614)
Trade and other receivables (7,493,914) (1,447,380)
Deferred income (9,535,358) (9,500,075)
Trade and other payables 9,348,710 9,294,287
Cash generated from operations 31,497,107 35,085,640
(b) Analysis of changes in borrowings
At start of year 111,383,416 112,717,342
Proceeds 14,632,483 9,559,072
Repayments (12,400,318) (13,132,712)
Repayment of previous year’s accrued interest (3,051,089) (1,892,742)
Foreign exchange losses 3,982,332 1,081,367
Accrued interest (Note 30 (a)) 4,186,515 3,051,089
At end of year 118,733,339 111,383,416
Net debt reconciliation
Cash and bank balances (Note 22 (b)) 3,441,550 4,284,496
Short-term deposits (Note 22 (a)) 442,741 409,465
Overdrafts (Note 22 (b)) (8,771,746) (10,156,305)
Borrowings (Note 30) (109,961,593) (111,383,416)
Net debt (114,849,048) (116,845,760)
Net debt reconciliation
Cash, bank balances and short-term deposits 3,884,291 4,693,961
Gross debt – fixed interest rates (64,085,750) (64,739,435)
Gross debt – variable interest rates (54,647,589) (56,800,286)
Net debt (114,849,048) (116,845,760)
NOTES (CONTINUED)
35. NOTES TO THE STATEMENT OF CASH FLOWS (CONTINUED)
(c) Analysis of cash and cash equivalents
2020 2019
Shs’000 Shs’000
Short-term deposits (Note 22 (a)) 449,260 419,205
Cash and bank balances (Note 22(b)) 3,459,221 4,310,626
Bank overdraft - (10,156,305)
3,908,481 (5,426,474)
For the purpose of the cash flow statement, cash and cash equivalents include short-term liquid investments
which are readily convertible to known amounts of cash and which were within three months to maturity
when acquired; less advances from banks repayable within three months from date of disbursement or date of
confirmation of the advance.
(d) Analysis of interest paid
2020 2019
Shs’000 Shs’000
Interest on loans (Note 11(b)) 6,509,201 7,126,180

Overdraft interest (Note 11(b)) 1,323,654 1,083,429
Late payment interest (Note 11 (b)) 707,305 527,302
8,540,160 8,736,911
Interest on loans capitalised 351,933 489,329

Accrued interest brought forward (Note 30 (a)) 3,051,089 1,892,742
Accrued interest carried forward (Note 30 (a)) (4,186,515) (3,051,089)
Interest paid 7,756,667 8,067,893
(e) Proceeds of disposal of property and equipment

Proceeds from disposal of property and equipment 66,787 104,896
Less: disposed assets at net book value (1,022,855) (871,923)
Loss on disposal of property and equipment (956,068) (767,027)
(f) Analysis of dividends paid
Preference dividends - 4% and 7% cumulative preference shares 1,930 1,930
At end of year (806,222) (811,045)

Dividends paid 6,753 52,892
NOTES (CONTINUED)
35. NOTES TO THE STATEMENT OF CASH FLOWS (CONTINUED)

(g) Analysis of interest received
2020 2019
Shs’000 Shs’000
Interest received on bank and other deposits (Note 11 (a)) 123,188 117,900
Accrued interest brought forward 2,404 2,524
Reversal of previous years’ accrued interest - -
Accrued interest carried forward (4,654) (2,404)
Interest received 120,938 118,020
(h) Purchase of property and equipment
Work in progress additions (Note 16) 16,961,308 20,459,242
Exchange (loss)/gain on loans for on-going projects capitalised (413,885) 8,387
Interest expense on loans capitalised (Note 35 (d))* (351,933) (489,329)
Property and equipment purchased 16,195,490 19,978,300
*The Company capitalises interest on qualifying projects quarterly at the average cost of debt of 6.31% (2019: 6.3%).
36. RELATED PARTY TRANSACTIONS AND BALANCES

The Government of Kenya is the principal shareholder in The Kenya Power & Lighting Company Plc (KPLC) holding
a 50.1% equity interest. The Government also holds 70% and 100% of the equity interest in Kenya Electricity
Generating Company Plc (KenGen) and Kenya Electricity Transmission Company (KETRACO), respectively. The
Company is related to KenGen and KETRACO through common control. During the year, the following transactions
were carried out with related parties:
(a) The Company had no individually significant transactions carried out on non-market terms.
(b) Other transactions that are collectively significant are detailed as follows:
2020 2019
Shs’000 Shs’000
(i) Ministries
Electricity sales to Government Ministries 3,474,454 4,035,215
Electricity sales to strategic parastatals 1,998,679 2,383,375
(ii) Outstanding balances at the year-end included in trade and other receivables:
2020 2019
Shs’000 Shs’000
Receivable from Government of Kenya-RES recurrent losses
16,563,693 11,953,850
(Note 21 (b))
Receivable from Government of Kenya (Note 21 (b)) 559,560 1,403,965
VAT recoverable (Note 21 (b)) 819,446 1,948,120
Ministries 941,130 466,834
Strategic parastatals 639,188 489,538
Rural Electrification Authority current account (Note 21 (b)) 248,564 248,564
Ministry of Energy and other sector entities 158,393 154,766
EPRA levy (Note 21 (b)) - 138,518
19,929,974 16,804,155
NOTES (CONTINUED)
36. RELATED PARTY TRANSACTIONS (CONTINUED)

(b) Other transactions that are collectively significant are detailed as follows: (continued)
Outstanding balances at the year-end included in trade and other payables:
2020 2019
Shs’000 Shs’000
RES current account - Last Mile (Note 28 (b)) 3,824,511 4,902,232

Rural Electrification Authority levy (Note 28 (b)) 11,365,662 7,177,160
Ministry of Finance (Note 28 (b)) 875,041 875,041
Government of Kenya - Street lighting project (Note 28 (b)) 203,078 23,328
RES – intercompany (Note 28 (b) ) 264,686 489,689
RES – capital (Note 28 (a)) 237,634 159,351
16,770,612 13,626,801
Net amount owed by Government of Kenya 3,159,362 3,177,354
The tariffs applicable to Government institutions are the same as those charged to other ordinary customers.
(c) Staff
2020 2019
Shs’000 Shs’000
(i) Advances to staff included in trade and other receivables 462,195 511,414
The Company advances loans to staff at an interest charge of 12% (2019: 12%). The loans are mainly classified
into salary, motorcycle, laptop and domestic appliances loans. The outstanding amounts are recovered from
payroll on a monthly basis. The repayment period is between 12 to 36 months.
(ii) Key management compensation 2020 2019
Shs’000 Shs’000
Short-term employee benefits 5,699 11,493
Termination benefits 23,742 21,394
29,441 32,887
Short-term employee benefits include those relating to the Managing Director and Chief Executive Officer who
is also a Director which are disclosed below:
2020 2019
Shs’000 Shs’000
Fees for services as Director
Non-Executive Directors (Note 12) 4,800 4,300
Other emoluments
Salaries and other short-term employment benefits:
Non-Executive Directors (Note 12) 26,294 39,788
Executive Directors and key management staff 29,441 32,887
55,735 72,675
60,535 76,975
NOTES (CONTINUED)
(d) Rural Electrification Scheme (RES)
The Company continued to manage the RES under the Rural Electrification Programme (REP), on behalf of the
Government of Kenya.
The Rural Electrification Programme (REP) was established in 1973 by the Government of Kenya following an
agreement between the Government and East African Power & Lighting Company Limited, the predecessor to
The Kenya Power & Lighting Company Plc. The programme was established with the specific objective to extend
electricity to the sub-economic rural areas. In order to intensify the expansion of these sub-economic regions,
the Government has established the Rural Electrification Authority (REA). However, KPLC continues to operate
and maintain the whole network, in addition to implementing projects for the Authority on contract basis.
The Company has entered into a Mutual Co-operation and Provision of Services Agreement with REA to operate
and maintain lines owned by REA. In return, the Company will retain revenues generated from RES customers to
cover maintenance costs incurred by the Company. However, the Company continues to invoice the Government
for the expenditure incurred to complete on-going projects.
The REP is funded by the Government of Kenya. Any property acquired by REP remains the property of the
Government of Kenya. KPLC only acts as a management agent on behalf of the Government. The balances due
to RES are disclosed in Note 36 (b) (ii) and (iii).
2020 2019
Shs’000 Shs’000
(e) KenGen
Electricity purchases (before allocation to RES) 45,217,399 47,373,962
Amounts due to KenGen on electricity purchases (Note 28 (b)) 24,008,924 19,257,959

Electricity sales 322,294 232,829
Amounts due from KenGen on account of electricity sales 273,731 237,887
(f) KETRACO
KETRACO wheeling charge (Note 28(b)) 5,921,975 3,863,672
Funding for assets
KEEP/KETRACO 132KV Transmission lines 47,208 47,208
KEEP/KETRACO 132/33KV substations 44,996 44,996
2.5% Exim Bank Loan for the construction of Kamburu-Meru line - -
Interest paid on repayment of 2.5% Exim Bank Loan 27,695 27,695
Amount due from Ketraco on account of local costs* 567,642 567,642
Amount due from Ketraco on 0.75% JICA loan (inclusive of interest) 221,272 221,272
Operations and Maintenance costs for Transmission lines 667,343 601,620
1,576,156 1,510,433
*These are local costs incurred by KPLC in the construction of Kisii Chemosit and Kamburu-Meru lines.
NOTES (CONTINUED)
(g) KPLC Staff Retirement Benefits Scheme
The Company rents property owned by the staff retirement benefits scheme for office space. Rent paid to the
scheme in the year amounted to Shs 152 million (2019: Shs 167 million). The outstanding balance to the retirement
benefit scheme as at 30 June 2020 was Shs nil million (2019: Shs nil million).
The year-end outstanding balances with related parties are interest free and settlement occurs in cash.
37. GOVERNMENT GRANT

The Company received grants from the Government of Kenya to subsidize electricity connectivity and to finance
street lighting projects. The grants amounted to Shs 1,976,750,000 (2018: Shs 2,678,625,000)
The movement in the grant accounts in the current year is as follows:
2020 2019
Shs’000 Shs’000
Connectivity
At start of year 1,403,965 2,598,787
Disbursements received during the year (1,096,750) (1,137,500)
Utilised during the year 300,800 -
New connections during the year (48,455) (57,322)
At end of year 559,560 1,403,965
Street lighting
Disbursements received during the year 880,000 1,541,125
Utilised during the year (700,250) (1,803,538)
At end of year (Note 28 (b)) 203,078 23,328
The connectivity amount of Shs 559 million (2019: Shs 1,403 million) receivable for connectivity projects has
been disclosed under trade and other receivables, while Shs 203 million (2019: Shs 23 million) for street lighting
is accounted for under trade and other payables.
38. CAPITAL COMMITMENTS

The capital commitments relate to the ongoing capital projects which have been approved and are at various
stages of implementation.
2020 2019
Shs’000 Shs’000
Authorised and contracted for 57,423,768 62,431,552
Less: amount incurred and included in work-in-progress (22,694,246) (25,770,129)
34,729,522 36,661,423
39. CONTINGENT LIABILITIES

Cases filed against the Company are being handled by advocates appointed by the Company.
The Directors, based on professional advice and previous High Court rulings, are of the opinion that significant
loss may arise from these matters.
The following is a highlight of the significant claims against the Company: -
Litigation and claims
(i). HCC No. 275 of 2010 – The plaintiff is seeking damages and interest for loss occasioned by KPLC as a result
of disconnection;
(ii). HCC No. 166 of 2016 – The plaintiff is seeking payment of interest and demurrage charges under three
separate contracts for the supply of transformers.
(iii). HCC No. E091 of 2020 - The plaintiff is seeking compensation from KPLC for breach of contract;
(iv). Employment and Labour Relations Case No. Court 17 of 2019 (Formerly High Court Civil Case Number 74 of
2003) - The plaintiffs are former KPLC’s employees who have filed the suit claiming amounts allegedly owed
to them following cessation of their employment on diverse dates from 30th June 2001 to 19th March 2002;
NOTES (CONTINUED)
39. CONTINGENT LIABILITIES (CONTINUED)
Litigation and claims (continued)
(v). ELC No. 87 of 2012 - This is a claim for compensation by the Plaintiff against KPLC alleging that the Company
supplied electricity to squatters on his land;
(vi). ELC No.114 of 2010 (Central Registry), ELC No.615 of 2010 (O.S) & ELC No.795 of 2007 - The Plaintiff is
seeking orders for power lines to be removed from the suit premises and compensation from alleged trespass;
(vii). High Court Civil Case No. E049 OF 2018 - KPLC has been sued for breach of contract and the plaintiff is
seeking compensation for the breach;
(viii). ELC No. 336 of 2014 (formerly HCC No. 478 of 2005) - These are land owners who granted wayleaves to
KPLC over their land but are seeking additional compensation for the wayleaves granted.
(ix). Court case no. ELC No. 007 of 2020 – This is a claim for trespass where the plaintiffs are seeking for
compensation and removal of KPLC’s electricity lines.
(x). Court case no. Civil Appeal No. E247 of 2020 - This is a claim for trespass where the plaintiffs are seeking
for compensation and removal of KPLC’s electricity lines.
(xi). Court case no. Civil Appeal No. E248 of 2020 - This is a claim for trespass where the plaintiffs are seeking
for compensation and removal of KPLC’s electricity lines.
(xii). Court case Civil Appeal No. 34 of 2020 - This is a claim on breach of contract where the applicant is seeking
compensation for breach.
Other claims lodged against the Company relate to civil suits which have arisen in the normal course of business.
40. FUTURE RENTAL COMMITMENTS UNDER OPERATING LEASES

As lessee:
The total future minimum lease payments due to third parties under non-cancellable operating leases as at 30
June are shown below;
2019
Shs’000
Not later than 1 year 231,677
Later than 1 year and not later than 5 years 544,620
More than 5 years 537,536
1,313,833
As lessor:
The future minimum lease payments receivable under non-cancellable operating leases are as follows:
2020 2019
Shs’000 Shs’000
Not later than 1 year 74,908 369,937

Later than 1 year and not later than 5 years 350,083 200,377
More than 5 years 139,227 89,739
564,218 660,053
As a lessor, the Company has entered into commercial property leases on its property and it retains all the significant
risks and rewards of ownership of these properties and therefore accounts for the contracts as operating leases.
NOTES (CONTINUED)
41. WORLD BANK FINANCING
(a) KEEP Loan (IDA Credit No. 4743-KE)
The Company received funding from the World Bank through Credit No.4743-KE to support electricity expansion
projects. Summary information on transactions under KEEP Loan during the two years ended 30 June 2020 and
2019 were as follows:
2020 2019
Shs’000 Shs’000
Balance at the beginning of the year 4,303 4,107
Amounts received during the year - -
Net interest income 189 196
Expenditure during the year - -
Balance at the end of the year 4,492 4,303
The closing balances shown above are included in cash and cash equivalents and represent balances on the
World Bank funded Special Account No.0550297294333 held at Equity Bank Limited. Included in the long-term
borrowings is an amount of Shs 13,007,200,043 (US$ 122,107,651) (2019: Shs 12,491,474,914 (US$ 122,107,651)
in respect of the amounts disbursed under the loan to date. The proceeds of the World Bank loan have been
expended in accordance with the intended purpose as specified in the loan agreement.
(b) KEMP (IDA Credit No. 5587-KE) LOAN
The Company received funding from the World Bank through Credit No.5587-KE to support electricity
modernization projects. Summary information on transactions under KEMP Loan during the two years ended
30 June 2020 and 2019 were as follows:
2020 2019
Shs’000 Shs’000
Amounts received during the year 254,152 219,073
Net interest income 4,822 4,540
Expenditure during the year (246,627) (135,936)
Balance at the end of the year 157,956 145,609
The closing balances shown above are included in cash and cash equivalents and represent balances in the
World Bank funded Special Account No. 1400266765947 held at Equity Bank Limited. Included in the long-term
borrowings is an amount of Shs 2,692,981,469 (US$ 25,280,894) (2019: Shs 1,275,653,422 (US$ 12,469,938)
in respect of the amounts disbursed under the loan to date. The proceeds of the World Bank through Credit
No.5587-KE have been expended in accordance with the intended purpose as specified in the loan agreement.
(c) KEMP (IDA Credit No. 5587-KE) GRANT
The Company received funding from the World Bank through Credit No.5587-KE to support electrification
projects. Summary information on transactions under KEMP Grant during the two years ended 30 June 2020 and
2019 were as follows:
2020 2019
Shs’000 Shs’000

Amounts received during year 123,492 1,132,796
Net interest income 7,282 10,684
Expenditure during year (463,216) (825,226)
Balance at end of year 136,310 468,752
NOTES (CONTINUED)
41. WORLD BANK FINANCING (continued)
(c) KEMP (IDA Credit No. 5587-KE) GRANT (continued)
The closing balances shown above are included in cash and cash equivalents and represent balances on the World
Bank funded Special Account No1400266766088 held at Equity Bank Limited. The proceeds of World Bank grant
have been expended in accordance with the intended purpose as specified in the loan agreement.
42. EUROPEAN INVESTMENT BANK (EIB) FINANCING

The Company received financial support from EIB for Grid development. Included in the long-term borrowings
is an amount of Shs 2,071,648,429 (Euro 17,243,476) (2019: Shs 2,370,171,221 (Euro 20,378,679) in respect of the
outstanding loan balance. The proceeds of the European Investment Bank loan have been expended in accordance
with the intended purpose as specified in the loan agreement.
43. EVENTS AFTER THE REPORTING DATE

As disclosed in the auditor’s report, and Note 20 to these financial statements, on 29 December 2020, the Board of
Directors approved a change in the estimation of slow moving, and non-moving Inventories. The total adjustment
for the year due to this change in estimation is Shs 3,213 million.
The Directors are not aware of any other material events after the reporting date that would require adjustment
to, or disclosure in, these financial statements.
In the last seven years our high and medium voltage line network has expanded from a
total of 56,611 kilometres to 84,681 kilometres.
TEN YEAR FINANCIAL AND STATISTICAL RECORDS
30th June 30th June 30th June 30th June 30th June 30th June 30th June 30th June 30th June 30th June
For year ended
2011 2012 2013 2014 2015 2016 2017 2018(Restated) 2019 2020
UNITS SOLD (GWh) 5,816 6,001 6,175 6,790 7,130 7,385 7,717 7,905 8,173 8,171
Average yield of units sold (cents) 1,257.81 1,594.11 1,439.83 1,552.22 1,497.38 1,467.50 1,564.63 1,661.97 1,629.03 1,630.87
Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000
Revenue from sale of electricity 73,154,021 95,662,427 88,909,626 105,395,714 106,763,525 108,374,612 120,742,270 131,378,974 133,140,887 133,258,602
Operating Profit 7,084,377 7,810,450 8,941,540 14,922,404 15,839,478 16,930,645 13,652,536 11,917,723 10,530,956 5,312,226
TAXATION (CHARGE)/ CREDIT (3,889,577) (3,124,780) (4,021,363) (4,821,617) (4,885,834) (2,376,214) (1,699,641) (72,061) 6,102,532
(2,035,185)
NET PROFIT AFTER TAXATION

BEFORE FINANCE INCOME/ 5,049,192 3,920,873 5,816,760 10,901,041 11,017,861 12,044,811 11,276,322 10,218,082 10,458,895 11,414,758
COSTS
Finance Income 171,477 489,182 111,546 104,208 1,380,968 964,957 46,004 100,000 117,900 123,188
Finance Costs (999,173) 208,991 (2,480,659) (4,008,832) (4,964,942) (5,811,275) (6,039,971) (7,047,526) (10,315,242) (12,477,428)
Preference dividends (gross) (1,930) (1,930) (1,930) (1,930) (1,930) (1,930) (1,930) (1,930) (1,930) (1,930)
NET PROFIT ATTRIBUTABLE TO

4,219,566 4,617,116 3,445,717 6,994,487 7,431,957 7,196,563 5,280,425 3,268,626 261,553 (939,482)
ORDINARY SHAREHOLDERS
137
138
For year ended

2011 2012 2013 2014 2015 2016 2017 2018(Restated) 2019 2020
ORDINARY DIVIDENDS
(1,002,763) (563,757) - (390,293) (975,733) (975,733) (585,440) (975,734) - -
(GROSS)
OTHER COMPREHENSIVE
- (127,397) 1,266,758 989,821 (1,995,966) (168,673) (740,849) (68,486) (1,165,286) (395,560)
INCOME
RETAINED PROFIT FOR THE

3,216,803 3,925,962 4,712,475 7,594,015 4,460,258 6,052,157 3,954,136 2,224,406 (903,733) (1,335,042)
YEAR
FUNDS GENERATED FROM

OPERATIONS
Profit/(Loss) for the year after

3,216,803 3,925,962 4,712,475 7,594,015 4,460,258 6,052,157 3,954,136 2,224,406 (903,733) (1,335,042)
dividends
Depreciation 3,847,007 4,563,658 5,632,642 6,797,745 7,943,421 9,434,511 11,951,350 15,284,953 17,253,356 17,869,493
7,063,810 8,489,620 10,345,117 14,391,760 12,403,679 15,486,668 15,905,486 17,509,359 16,349,623 16,534,451
CAPITAL EMPLOYED
Fixed Assets less depreciation 84,590,569 106,377,165 146,094,184 168,155,851 196,301,330 233,714,593 262,347,609 273,376,882 277,066,960 276,859,904
Intangible assets - 169,520 258,716 1,410,044 1,418,599 2,602,033 2,593,483 3,842,816 3,491,263 2,380,739
Prepaid leases on land 131,764 131,709 131,653 131,598 131,543 868,519 868,463 813,423 883,126 667,014
For year ended
2011 2012 2013 2014 2015 2016 2017 2018(Restated) 2019 2020
Investment 1,298,506 1,171,109 - - - - - - - -

Other non current assets - - - 817,423 8,372,135 5,079,411 4,133,291 4,001,887 2,342,637 2,732,763
Net current assets/(Liabilities) 7,020,165 (3,223,754) (1,147,158) 1,563,870 20,463,293 (2,793,900) (17,535,199) (56,012,987)
(70,969,861) (74,848,822)
252,407,647 226,022,021
93,041,004 104,625,749 145,337,395 172,078,786 226,686,900 239,470,656 212,814,125 207,791,598
FINANCED BY:
Ordinary shareholders' equity 39,606,376 43,022,772 47,149,807 54,743,822 57,969,656 59,379,481 63,333,617 60,622,423 56,230,862 54,896,799
Non cumulative preference

- - - - - - - - -
shares
Cumulative preference shares 43,000 43,000 43,000 43,000 43,000 43,000 43,000 43,000 43,000 43,000
Deferred Income 7,472,912 12,362,327 16,087,747 18,680,714 16,612,332 18,154,796 19,562,051 16,999,103 15,103,027 12,900,609
Loan capital 19,757,132 21,512,025 42,886,311 53,141,442 99,289,403 105,017,783 111,075,216 96,929,050 92,615,401 94,957,232
Deferred taxation 6,500,449 11,862,140 15,442,569 19,848,236 24,699,789 26,702,741 28,683,216 28,904,087 26,886,643 20,590,805
Non current liability 19,661,135 15,823,485 23,727,961 25,621,572 28,072,720 30,172,855 29,710,547 22,524,358 21,935,192 24,403,153
139
93,041,004 104,625,749 145,337,395 172,078,786 226,686,900 239,470,656 252,407,647 226,022,021 212,814,125 207,791,598
140
For year ended

2011 2012 2013 2014 2015 2016 2017 2018(Restated) 2019 2020
CAPITAL EXPENDITURE 25,949,832 40,578,337 27,208,068 41,567,840 48,815,284 41,516,132 28,668,423 21,533,352 17,073,419
24,713,898
Average cost of units sold (cents) 1,160.33 1,496.28 1,347.16 1,450.92 1,365.10 1,339.41 1,493.09 1,627.34 1,607.31 1,656.27
Profit for the year before taxation

as a Percentage of average capital 7.61% 7.47% 6.15% 8.67% 6.99% 7.07% 5.41% 5.27% 4.95% 2.56%
employed
ORDINARY DIVIDENDS RATES 18% 20% 0% 20% 20% 20% 20% 0% 0% 0%
Earnings per share 2.16 2.36 1.76 3.58 3.81 3.69 2.71 1.67 0.13 (0.48)
Customers/employees ratio 205 199 223 260 333 439 615 615 643 723
Sales (KWh) per employee 680,774 584,374 590,922 641,076 657,446 663,343 682,800 719,094 743,473 779,750
STATISTICAL TABLES
TABLE 1: POWER SYSTEM OPERATION STATISTICS FOR 5 YEARS

Capacity (MW) as at
COMPANY Energy Purchased GWh
30.06.2020
Effective1 /
Installed 2015/16 2016/17 2017/18 2018/19 2019/20
Contracted2
KenGen
Hydro:
Gitaru 225.0 216.0 862 775 724 869 879
Kamburu 94.2 90.0 434 384 321 399 350
Kiambere 168.0 164.0 996 938 751 1,026 905
Kindaruma 72.0 70.5 208 183 179 193 203
Masinga 41.2 40.0 127 169 107 199 48
Tana 25.7 20.0 109 71 96 96 133
Turkwel 106.0 105.0 426 402 458 545 426
Sondu Miriu 60.7 60.0 419 282 388 258 509
Sangóro 21.2 20.0 140 90 129 82 166
Small Hydros 11.7 11.2 63 44 33 42 19
Hydro Total 826 797 3,784 3,339 3,186 3,707 3,636
Thermal:
Kipevu I Diesel 73.5 60 129 211 238 197 80
Kipevu III Diesel 120 115 181 512 584 490 162
Muhoroni GT 60 56 1 108 65 67 37
Garissa & Lamu 0 0 12 0 0 0 0
Garissa Temporary Plant
0 0 19 0 0 0 0
(Aggreko)
Thermal Total 254 231 342 832 888 754 279
Geothermal:
Olkaria I (units 1, 2 & 3) 45.0 44.0 331 195 247 285 291
Olkaria II 104.5 101.0 814 791 832 796 583
Eburru Hill 2.4 2.1 10 0 6 10 7
OW37, OW 37 kwg 12,
OW 37 kwg 13 and OW 39 22.0 17.5 16 89 127 129 118
Olkaria Mobile Wellheads2
OW43 Olkaria Mobile
14.0 10.0 75 74 66 66 56
Wellheads
OW905,OW914 ,OW915
and OW 919 Olkaria Mobile 52.5 42.5 266 309 325 297 285
Wellheads3
Olkaria IV 149.8 140.0 976 852 1,132 1,095 1,006
Olkaria I (4 units& 5) 150.5 140.0 1055 968 1,133 1,069 985
Olkaria V 172.3 158.0 945
Geothermal Total 713 655 3,542 3,279 3,868 3,747 4,276
Wind
Ngong 25.5 25.5 56.7 63.2 47.5 67.4 46.6
Capacity (MW) as at
30.06.2020
Effective1 /
Installed 2015/16 2016/17 2017/18 2018/19 2019/20
Contracted2
KenGen Total 1,818 1,708 7,725 7,513 7,989 8,276 8,237
Government of Kenya (Rural Electrification Programme)
Off-grid Diesel 31.9 21.5 39.9 40.8 46.9 57.6 60.1
Off-grid Solar 2.3 1.9 0.00 0.00 0.00 0.00 0.00
Off-gridWind 0.6 0.0 0.79 0.54 0.12 0.06 0.33
Total Offgrid 35 23 41 41 47 58 60
Independent Power Producers
(IPP) - Thermal & Geothermal
Iberafrica Diesel 52.5 52.5 128 252 186 74 55
Mumias - Cogeneration 0 0 4 0.0 0.0
OrPower 4 -Geothermal
121.0 121.0 937 925 942 1,038 873
I,II&III
OrPower 4 -Geothermal
29.0 29.0 129 247 244 247 202
(the 4th plant)
Tsavo 74.0 74.0 39 121 196 131 152
Rabai Power 90.0 88.6 536 606 562 120 252
Imenti Tea Factory (Feed-
0.283 0.283 0.7 0.3 0.6 0.3 1.0
in Plant)
Thika Power 87.0 87.0 70 168 215 107 50
Gikira small hydro 0.514 0.514 1.9 0.9 1.4 1.1 1.8
Gulf Power 80.32 80.32 8 61 80 37 18
Triumph Diesel 83.0 83.0 81.8 83 28 16 15
Biojoule Kenya Limited 2.0 2.0 0 0.7 0.4 0.3 0.3
Regen-Terem 5.00 5.00 0 1 18 20 32
Gura 2.00 2.00 0 0 17 12 21
Chania 0.50 0.50 0 0 0.8 0.3 1.1
Strathmore 0.25 0.25 0 0 0.02 0.15 0.14
Lake Turkana Wind Power 310.0 300.0 0 0 0 1,124 1,237
IPP Total 937 926 1,934 2,466 2,495 2,930 2,913
Emergency Power
Producers(EPP)
Aggreko Power 0 0.0 50 0 0 0 0
EPP Total 0 0 50 0 0 0 0
REA Garissa Solar Plant
REA Garissa 50 50 0 0 0 60 91
REA Garissa Total 50 50 0 0 0 60 91
Imports
UETCL 65 180 168 168 156
TANESCO 0.0 0.0 0.0 0.0 0.0
EEU (MOYALE) 2.6 3.4 3.0 1.8 4.5
Total Imports 67 184 171 170 161
SYSTEM TOTAL 2,840 2,708 9,817 10,204 10,702 11,493 11,462
SUMMARY OF KEY STATISTICS
Capacity (MW) as at
30.06.2020
Effective1 /
Installed 2015/16 2016/17 2017/18 2018/19 2019/20
Contracted2
SALES - KPLC System (GWh) 7,330 7,701 7,881 8,147 8,152
- REP System (GWh) 537 549 554 595 603
- Export to Uganda (GWh) 43 20 22 27 18
- Export to Tanesco (GWh) 2 2 2 0.01 0.00
TOTAL SALES (GWh) 7,912 8,272 8,459 8,769 8,773
System Losses (GWh)4 1,905 1,932 2,244 2,724 2,689
System Peak Demand (MW)5 1,586 1,656 1,802 1,882 1,926
System Load Factor 70.6% 70.3% 67.8% 69.7% 67.9%
Sales % of Energy Purchased 80.6% 81.1% 79.0% 76.3% 76.5%
Losses as % of Energy
19.4% 18.9% 21.0% 23.7% 23.5%
Purchased
Annual Growth: - Energy
5.8% 3.9% 4.9% 7.4% -0.3%
Purchased
-Total Sales 3.3% 4.5% 2.3% 3.7% 0.0%
-KPLC Sales 3.4% 5.1% 2.3% 3.4% 0.1%
-REP Sales 2.3% 2.2% 1.0% 7.4% 1.3%
-System Peak Demand 4.9% 4.4% 8.8% 4.4% 2.3%
Notes:
1)PPA Effective Capacity - Contracted Capacity for the Power Plant on Energy PPA
2)PPA Contracted Capacity – Contracted Capacity for the Power Plant on Capacity PPA
3) OW37, OW 37 kwg 12, OW 37 kwg 13 and OW 39 Olkaria Mobile Wellheads are centrally metered at OW 37
4) OW905,OW914 ,OW915 and OW 919 Olkaria Mobile Wellheads are metered at OW 914 and OW 915
5) System losses comprise of technical and non-technical losses.
6) The peak demand shown includes export to Uganda.
TABLE 2: REGIONAL MAXIMUM DEMAND (MW)

REGION 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi 842 831 882 913 905
Coast 315 323 344 340 337
West Kenya 364 391 414 446 445
Mt. Kenya 177 171 167 185 263
TOTAL SYSTEM (SIMULTANEOUS) 1,586 1,656 1,802 1,882 1,926
% INCREASE P.A. 4.9% 4.4% 8.8% 4.4% 2.3%
TABLE 3: KPLC SALES BY CUSTOMER
CATEGORY IN GWh 2015/16 2016/17 2017/18 2018/19 2019/20
CUSTOMER CATEGORY
Domestic-DC 2,007 2,138 2,335 2,366 2,508
Small Commercial-SC 1,153 1,201 1,222 1,250 1,262
Commercial and Industrial-CI 4,104 4,266 4,225 4,462 4,308
Off-peak (Interruptible)-IT*** 26 41 33 N/A N/A
Street lighting-SL 40 55 66 68 76
TOTAL 7,330 7,701 7,881 8,147 8,154
% INCREASE P.A. 3.4% 5.1% 2.3% 3.4% 0.1%
***IT Tariff category no longer exists under the new tariff structure
TABLE 4: TOTAL UNIT SALES BY REGION IN GWh

REGION 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 1,187 1,301 1,204 1,219 1,209
Nairobi South 1,696 1,759 1,728 1,719 1,733
Nairobi West 808 853 898 958 960
Coast 1,338 1,389 1,435 1,477 1,464
Central Rift 569 596 650 689 680
North Rift 280 269 303 288 302
South Nyanza 48 86 88 104 123
West Kenya 320 313 361 376 376
Mt Kenya 413 431 437 456 439
North Eastern 671 704 776 862 869
KPLC Sales 7,330 7,701 7,881 8,147 8,154
R.E.P. Schemes 537 549 554 595 602
Export Sales 45 22 23 27 18
TOTAL 7,912 8,272 8,459 8,769 8,773
%INCREASE P.A. 3.4% 4.5% 2.3% 3.7% 0.05%
TABLE 5: REGIONAL SALE OF ELECTRICITY FOR CATEGORY “DC” DOMESTIC LOAD IN

GWh
REGION 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 395 418 306 408 435
Nairobi South 289 291 352 341 374
Nairobi West 380 405 321 443 465
Coast 328 338 371 365 384
Central Rift 168 218 280 214 225
West Kenya 163 136 102 131 172
North Rift 105 116 262 78 139
South Nyanza 31 51 106 162 69
Mt Kenya 178 203 220 232 241
North Eastern 315 328 380 386 403
TOTAL 2,352 2,504 2,699 2,760 2,908
% INCREASE P.A. 8.1% 6.5% 7.8% 2.3% 5.4%
TABLE 6: REGIONAL SALE OF ELECTRICITY FOR CATEGORY “SC” SMALL COMMERCIAL
LOAD IN GWh
REGION 2015/16 2018/19 2017/18 2018/19 2019/20
Nairobi North 214 216 231 214 208
Nairobi South 153 157 163 152 181
Nairobi West 146 154 170 172 166
Coast 171 182 162 206 191
Central Rift 163 182 169 184 176
West Kenya 114 99 80 85 108
North Rift 77 79 90 34 85
south Nyanza 19 34 54 96 47
Mt Kenya 151 161 165 162 152
North Eastern 131 132 119 139 140
TOTAL 1,339 1,395 1,403 1,444 1,452
% INCREASE P.A. -0.6% 4.2% 0.6% 2.9% 0.6%
TABLE 7: REGIONAL SALE OF ELECTRICITY FOR CATEGORY “CI1” LARGE COMMERCIAL

AND INDUSTRIAL LOAD (415V) IN GWh
REGION 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 236 240 237 237 220
Nairobi South 331 335 292 320 304
Nairobi West 200 212 184 213 199
Coast 216 219 160 221 225
Central Rift 203 221 213 236 232
West Kenya 82 68 58 91 70
North Rift 88 81 105 35 97
South Nyanza 21 35 49 74 45
Mt Kenya 161 154 154 138 134
North Eastern 122 126 138 168 163
TOTAL 1,660 1,693 1,590 1,733 1,688
% INCREASE P.A. 3.3% 2.0% -6.1% 9.0% -2.6%
TABLE 8: REGIONAL SALE OF ELECTRICITY CATEGORY “CI2” LARGE COMMERCIAL AND
INDUSTRIAL LOAD(11kV ) IN GWh
REGION 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 238 244 206 250 245
Nairobi South 514 500 441 505 489
Nairobi West 65 72 82 89 91
Coast 230 230 166 222 173
Central Rift 46 53 106 42 39
West Kenya 45 42 29 44 40
North Rift 19 20 91 18 18
Mt Kenya 17 20 33 17 18
North Eastern 131 140 154 177 168
TOTAL 1,307 1,328 1,321 1,376 1,291
% INCREASE P.A. 4.5% 1.6% -0.5% 4.2% -6.1%

INDUSTRIAL LOAD (33KV) IN GWh
REGION 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 0.0 0.0 0.1 0.0 0.0
Nairobi South 0.0 5.7 12.9 0.1 0.2
Nairobi West 4.0 11.9 28.8 37.6 37.0
Coast 140.0 158.2 110.4 178.5 199.1
Central Rift 65 75 101 98 89
West Kenya 11 16 16 32 35
North Rift 40 29 19 21 23
Mt Kenya 0 0 24 8 3
North Eastern 0 0 0 1 3
TOTAL 260 295 321 375 388
% INCREASE P.A. -8.6% 13.5% 8.7% 17.1% 3.5%
REGION 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 78 83 88 81 96 87
Nairobi South 341 379 419 346 404 394
Nairobi West 34 32 34 25 32 29
Coast 0 0 0 7 0 0
Central Rift 3 3 7 11 12 7
West Kenya 0 0 0 0 0 0
North Rift 0 0 0 63 0 0
South Nyanza 0 0 0 0 0 0
Mt Kenya 0 0 0 4 10 0
North Eastern 2 29 32 37 45 48
TOTAL 458 526 580 575 599 565
% INCREASE P.A. -0.4% 14.8% 10.2% -0.9% 4.3% -5.7%
REGION 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 0 0 0 0 0 0
Nairobi South 69 72 82 69 34 18
Nairobi West 0 0 0 8 15 15
Coast 274 278 287 211 314 319
Central Rift 2 2 1 102 1 14
West Kenya 84 0 6 20 21 15
North Rift 0 0 0 14 0 0
South Nyanza 0 0 0 0 0 0
Mt Kenya 0 0 0 0 0 2
North Eastern 12 3 0 1 1 3
TOTAL 441 355 376 425 387 385
% INCREASE P.A. 51.5% -19.5% 6.0% 12.9% -9.0% -0.5%
TABLE 12: REGIONAL SALE OF ELECTRICITY FOR CATEGORY “IT” OFF- PEAK LOAD IN
GWh
REGION 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20****
Nairobi North 0.2 10.7 2.4 2.6 0.0 0.0
Nairobi South 0.4 0.5 2.3 5.2 0.0 0.0
Nairobi West 12.8 11.8 3.2 2.7 0.0 0.0
Coast 0.4 0.4 2.2 8.5 0.0 0.0
Central Rift 0.1 0.3 2.7 2.7 0.0 0.0
West Kenya 0.3 0.5 2.5 1.2 0.0 0.0
North Rift 0.0 0.2 1.2 5.5 0.0 0.0
South Nyanza 0.0 0.1 1.2 1.3 0.0 0.0
Mt Kenya 0.3 0.4 2.2 2.1 0.0 0.0
North Eastern 0.9 1.5 3.2 4.4 0.0 0.0
Mt Kenya - - - - 0.0 0.0
TOTAL 15.4 26.4 23.1 36.3 0.0 0.0
% INCREASE P.A. -46% 71% -13% 57% 0% 0%
***IT Tariff category no longer exists under the new tariff structure
TABLE 13: REGIONAL SALE OF ELECTRICITY FOR CATEGORY “SL” STREET LIGHTING IN
GWh
REGION 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 6.7 9.2 13.1 15.1 13.9 13.7
Nairobi South 10.0 6.7 5.6 8.4 8.6 11.8
Nairobi West 7.5 8.3 9.8 8.5 8.4 9.4
Coast 3.8 4.0 4.6 7.2 7.4 10.4
Central Rift 1.6 2.4 4.9 7.2 7.7 7.7
West Kenya 0.2 0.9 3.8 2.7 5.1 5.3
North Rift 1.1 1.2 2.4 3.2 3.0 4.5
South Nyanza 0.0 0.1 0.3 1.6 0.8 1.4
Mt Kenya 2.2 4.3 6.6 7.4 7.3 7.3
North Eastern 2.7 2.8 5.5 5.7 5.8 6.0
TOTAL 35.7 39.9 56.5 66.9 68.1 77.4
% Increase P.A. 78.7% 11.6% 41.6% 18.4% 1.9% 13.7%
TABLE 14: REGIONAL SALES OF ELECTRICITY FOR R.E.P. SCHEMES IN GWh
REGION 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 7 0 0 0 0 0
Nairobi South 53 49 39 38 46 38
Nairobi West 43 40 49 36 53 51
Coast 27 29 32 32 36 37
Central Rift 75 83 88 96 105 110
West Kenya 119 96 59 59 57 68
North Rift 62 50 41 50 62 64
Soutn Nyanza 0 25 61 68 56 50
Mt Kenya 82 100 117 115 118 118
North Eastern 56 64 63 62 60 65
TOTAL 525 537 549 554 595 602
% Increase P.A. 15.6% 2.3% 2.2% 1.0% 7.3% 1.1%
TABLE 15: NUMBER OF CUSTOMERS BY REGION

REGION AS AT 30th
JUNE 2019
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Nairobi North 514,003 626,662 720,180 759,903 826,236 867,931
Nairobi South 462,108 590,731 746,961 819,603 837,062 887,771
Nairobi West 358,279 482,759 632,433 655,504 686,405 727,005
Coast 297,985 400,679 490,290 543,009 537,383 580,873
Central Rift 235,729 340,165 434,163 475,725 509,750 571,900
West Kenya 215,237 265,700 396,691 454,108 326,402 507,726
North Rift 156,858 242,328 287,296 315,735 474,362 349,635
South Nyanza 0 104,161 146,580 171,701 175,759 191,690
Mt Kenya 244,936 320,137 412,605 487,120 519,602 565,945
North Eastern 423,579 545,033 645,573 746,473 765,644 822,726
KPLC Customers 2,908,714 3,918,355 4,912,772 5,428,881 5,658,605 6,073,202
R.E.P. Customers 703,190 972,018 1,269,510 1,332,209 1,409,256 1,502,943
TOTAL 3,611,904 4,890,373 6,182,282 6,761,090 7,067,861 7,576,145
% Increase P.A. 30.5% 35.4% 26.4% 9.4% 4.5% 7.2%
TABLE 16:NUMBER OF CUSTOMERS BY TARIFF CATEGORY
MAIN TYPE OF
CUSTOMERS
TARIFF 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
COVERED BY THIS
TARIFF
Domestic
DC only
KPLC 2,646,965 3,665,216 4,628,435 5,135,226 5,390,996 5,775,839
REP 600,244 861,110 1,153,031 1,215,721 1,291,141 1,380,590
Domestic
DC & IT***
KPLC 57,827 38,816 57,442 53,172 N/A N/A
REP 898 765 957 513 N/A N/A
Small Commercial
SC only KPLC 193,327 202,477 211,655 224,276 251,614 277,989
REP 101,608 109,588 114,893 115,412 117,705 121,794
Small Commercial
SC & IT*** KPLC 1,548 1,470 1,741 1,473 N/A N/A
REP 252 229 287 145 N/A N/A
KPLC 2,930 3,068 3,126 3,202 3,038 2,951
C11
REP 10 19 24 25 22 32
Large Commercial
CI2 and Industrial
KPLC 348 378 405 527 456 480
Large Commercial
CI3 and Industrial
KPLC 43 43 57 64 69 75
Large Commercial
CI4 and Industrial
KPLC 31 35 41 53 50 52
Large Commercial
CI5 and Industrial
KPLC 32 32 33 41 37 45
Off-peak
(Interruptible)
IT only***
KPLC 794 796 791 1,110 N/A N/A
REP 8 13 8 10 N/A N/A
Street lighting
SL KPLC 4,869 6,024 9,046 9,845 12,345 15,771
REP 170 294 310 275 388 527
TOTAL (KPLC) 2,908,714 3,918,355 4,912,772 5,428,989 5,658,605 6,073,202
TOTAL (R.E.P.) 703,190 972,018 1,269,510 1,332,101 1,409,256 1,502,943
GROSS TOTAL 3,611,904 4,890,373 6,182,282 6,761,090 7,067,861 7,576,145
% INCREASE P.A. 30.5% 35.4% 26.4% 9.4% 4.5% 7.2%
TABLE 17: REVENUE (Shs ‘Mllion) BY CUSTOMER CATEGORY
TARIFF MAIN TYPE OF 2015/16 2016/17 2017/18 2018/19 2019/20
CUSTOMERS COVERED
BY TARIFF
DC Domestic 32,726 38,064 38,066 38,706 43,916
SC Small Commercial 23,639 25,590 26,995 29,314 25,553
CI Commercial Industrial 50,862 55,706 59,528 63,870 62,818
IT**** Off-peak (Interruptible) 70 625 391 47 0
SL Street Lighting 342 414 464 658 766
TOTAL 107,638 120,399 125,444 132,595 133,053
Export 736 343 410 546 206
TOTAL KPLC 108,374 120,742 125,854 133,141 133,259
R.E.P. 9,812 10,376 11,846 10,772 10,071
TOTAL REVENUE 118,186 131,118 137,700 143,913 143,330
%INCREASE P.A. 2.9% 10.9% 5.0% 4.5% -0.4%
TABLE 18: STAFF ANALYSIS

Number of Staff in Each Region
2015/16 2016/17 2017/18 2018/19 2019/20

Central Office 2,049 2,093 1,779 1,855 1,818
Nairobi North 851 838 852 705
Nairobi West 922 913 918 880
Nairobi South 845 853 837 849
Nairobi 2,358
Coast 1,139 1,144 1,156 1,112 1,026
West Kenya 949 960 945 946 884
South Nyanza 364 418 421 465 444
Central Rift 1,051 1,079 1,157 1,154 1,124
North Rift 790 803 819 816 792
Mt Kenya 1,216 1,227 1,136 1,148 1,086
North Eastern 957 967 973 984 947
Total Number of Staff* 11,133 11,295 10,993 10,914 10,479
% INCREASE P.A. 2.7% 1.5% -2.7% -0.7% -4.0%
Gender:
Male 8,913 8,996 8,712 8,563 8,201
Female 2,220 2,299 2,281 2,351 2,280
Ratio- Male/Female 4.0 3.9 3.8 3.6 3.6
TABLE 19: TRANSMISSION AND DISTRIBUTION LINES, CIRCUIT LENGTH IN KILOMETRES

VOLTAGE 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
400 kV 96.8 1244.4 2116.4 2116.4

220 kV 1,352 1,452 1,555 1,686 1,686 1,686
132 kV 2,824 3,087 3,208 3,322 3,372 3,372
66 kV 952 977 1,000 1,168 1,187 1,187
33 kV 21,370 27,497 30,846 34,508 35,177 35,703
11 kV 32,823 35,383 37,234 38,968 39,797 40,616
Total HV and MV 59,322 68,396 73,940 80,897 83,335 84,681
415/240V or 433/250V 110,778 139,642 143,331 152,799 158,527
TOTAL 59,322 179,174 213,582 224,228 236,134 243,207
% INCREASE P.A. 4.8% 15.3% 19.2% 5% 5% 3%
TABLE 20: TRANSFORMERS IN SERVICE, TOTAL INSTALLED CAPACITY IN MVA
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Generation Substations
33/220 88 88 88 88 388 388
15/220KV 95 95 95 95 95 95
11/220kV 1,054 1,054 1,054 1,054 1,054 1,212
33/132 45 45 45 45 95 95
15/132 175 175 175 175 175 175
11/132kV 1,035 1,035 1,095 1,095 1,095 1,095
11/66kV 291 411 411 576 576 576
11/33kV 238 238 238 238 238 238
3.3/33kV 4 4 4 4 4 4
TOTAL 3,025 3,145 3,205 3,370 3,720 3,878
Transmission Substations
132/220 and 220/132kV 1,266 1,266 1,266 1,350 1,350 1,350
220/66kV 450 720 720 1,111 1,165 1,165
220/33 kV 69 69 69 69 69 69
132/66kV 420 420 600 600 600 600
132/33kV 939 1,229 1,721 1,721 1,743 1,743
132/11kV - - - 15 15 15
TOTAL 3,144 3,704 4,376 4,866 4,942 4,942
Distribution Substations
66/11kV 2,139 2,345 2,465 2,670 2,775 2,817
66/33kV 138 138 138 161 161 161
33/11kV 1,295 1,365 1,453 1,541 1,544 1,585
TOTAL 3,572 3,848 4,056 4,372 4,480 4,563
Distribution Transformers
11/0.415kV and
33/0.415kV 6,384 7,088 7,276 7,606 7,844 8,174
Machakos town skyline at dusk.
NOTICE OF THE ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN to Shareholders that, the 99th Annual General Meeting of The Kenya Power and Lighting Company
Plc will be held via electronic communication on Thursday, 1st April 2021 at 11.00 a.m. to conduct the following business: -
1. To read the Notice convening the Meeting and note the presence of a quorum.
2. To receive, consider and adopt the Company’s Audited Financial Statements for the year ended 30th June 2020,
together with the Chairman’s, Directors’ and Auditors’ Reports thereon.
3. To note that the Directors do not recommend payment of a dividend for the year ended 30th June 2020.
4. To elect Directors: -
i. Mr. Kairo Thuo retires by rotation in accordance with Article 120 of the Memorandum and Articles of Association
of the Company and, being eligible, offers himself for re-election.
ii. Mr. Sachen Gudka retires by rotation in accordance with Article 120 of the Memorandum and Articles of
Association of the Company and, being eligible, offers himself for re-election.
iii. Eng. Abdulrazaq Ali retires by rotation in accordance with Article 120 of the Memorandum and Articles of
Association of the Company and, being eligible, offers himself for re-election.
5. In accordance with the provisions of Section 769 of the Companies Act 2015, the following Directors being members
of the Board Audit Committee will be required to be elected to continue serving as members of the said Committee: -
i. Mr. Sachen Gudka
ii. Mrs. Beatrice Gathirwa
iii. Ms. Caroline Kittony-Waiyaki
iv. Eng. Elizabeth Rogo
6. To approve payment of fees to non-executive Directors for the year ended 30th June 2020.
7. Auditors:
To note that the audit of the Company’s books of accounts will continue to be undertaken by the Auditor-General
Kenya, or an audit firm appointed by her in accordance with section 23 of The Public Audit Act, 2015.
8. To authorise the Directors to fix the Auditors’ remuneration.
9. To consider any other business for which due notice has been given.
By Order of the Board
Imelda Bore
Company Secretary
10th March 2021
NOTES:
i. Shareholders wishing to participate in the Annual General Meeting (AGM) should register by dialing USSD
Code *483*903# on their mobile telephone and follow the various prompts on the registration process.
ii. A Shareholder domiciled outside Kenya can send an email to Image Registrars via kplcagm@image.co.ke
providing their details i.e., Name, Passport/ID No., CDS No. and Mobile telephone number requesting to be
registered. Image Registrars shall register the shareholder and send them an email notification once registered.
iii. Links to register via the web portal will also be sent to all shareholders with email addresses in the Register.
iv. To complete the registration process, shareholders will need to provide their National ID/Passport Numbers
which they used to purchase their shares and/or their CDSC Account Number. For assistance shareholders
should dial the following helpline number: +254 709170 000/709170 040 from 9.00 a.m. to 3.00 p.m. from
Monday to Friday. Shareholders outside Kenya may dial the helpline number for assistance during registration.
v. Registration for the AGM opens on 10th March 2021 at 9.00 a.m. and will close on 30th March 2021 at 11.00
a.m. Shareholders will not be able to register after this time.
vi. In accordance with Article 155 of the Company’s Articles of Association, the following documents may be
viewed on the Company’s website www.kplc.co.ke.
(a) copy of this Notice and the Proxy Form;

(b) The Company’s Annual Report & Audited Financial Statements for the year ended 30th June 2020.
vii. Any shareholder who is entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and
vote in his/her stead. Such proxy need not be a member of the Company. Please visit the Company’s website
for further details on voting and proxy.
A Proxy Form is provided with the Annual Report & Accounts. The Proxy Form can also be obtained from the
Company’s website www.kplc.co.ke or from Image Registrars Limited, Absa Towers (formerly Barclays Plaza),
5th Floor, Loita Street, P. O. Box 9287 – 00100, Nairobi, Kenya. Shareholders who do not wish to attend the
AGM have an option to complete and return the Proxy Form to Image Registrars Limited, or alternatively
to the Registered Office of the Company so as to arrive not less than forty-eight (48) hours before the time
appointed for the Meeting.
Duly signed proxy forms may also be emailed to kplcagm@image.co.ke in PDF format. A proxy form must be
signed by the appointer or his attorney duly authorized in writing. If the appointer is a body corporate, the
instrument appointing the proxy shall be given under the Company’s common seal or under the hand of an
officer or duly authorized attorney of such body corporate.
viii. Shareholders wishing to raise any questions or clarifications regarding the AGM may do so not less than
forty-eight (48) hours before the time appointed for the Meeting by:
(a) Sending their written questions by email to kplcagm@image.co.ke; or

(b) To the extent possible, physically delivering or posting their written questions with a return physical,
postal or email address to the registered office of the Company or P.O. Box 30099 – 00100, Nairobi, or
to Image Registrars offices at P. O. Box 9287 – 00100, Nairobi, Kenya.
(c) Shareholders must provide their full details (full names, National ID/Passport Number/CDSC Account
Number) when submitting their questions or clarifications.
The Company’s Directors will provide written responses to the questions received to the return physical, postal
or email address provided by the Shareholder not later than twelve (12) hours before the start of the AGM.
A full list of all questions received, and the answers thereto will be published on the Company’s website not
later than twelve (12) hours before the start of the AGM.
ix. The AGM will be streamed live via a link which shall be provided to all shareholders who will have registered
to participate in the AGM. Duly registered shareholders and proxies will receive a short message service
(SMS/USSD) prompt on their registered mobile numbers, twenty-four (24) hours prior to the AGM acting as
a reminder of the AGM. A second SMS/USSD prompt shall be sent one (1) hour ahead of the AGM, as a
reminder that the AGM will begin in one hour and providing a link to the live stream.
x. Shareholders and proxies who have registered to attend the AGM may follow the proceedings using the
live stream platform, access the agenda and vote when prompted by the Chairman via the USSD prompts.
xi. Results of the resolutions voted on will be published on the Company’s website that is, www.kplc.co.ke within
twenty-four (24) hours following conclusion of the AGM.
ILANI YA MKUTANO MKUU WA MWAKA
ILANI INATOLEWA HAPA kwa wanahisa kuwa mkutano mkuu wa mwaka wa 99 wa The Kenya Power and Lighting
Company Plc utaafanyika kupitia mawasiliano ya elektroniki Alhamisi tarehe 1 Aprili 2021 saa tano asubuhi kutekeleza
shughuli zifuatazo:-
1. Kusoma ilani ya kuitisha mkutano pamoja na kubainisha mahudhurio/kutambua uwepo wa akidi.
2. Kupokea,kuzingatia na kupitisha Taarifa za Fedha zilizokaguliwa za mwaka ulioishia Juni 30 mwaka wa 2020,
ikijumuishwa na ripoti za Mwenyekiti, Wakurugenzi na wakaguzi juu yake.
3. Kutambua/kumakinika kuwa wakurugenzi hawajapendekeza malipo yoyote ya gawio kwa mwaka unaoishia tarehe
30 Juni 2020.
4. Kufanya uchaguzi wa wakurugenzi:-
i. Bwana Kairo Thuo anastaafu kimapokezano kulingana na kifungu 120 cha Mkataba na Nakala za Uanachama
wa Kampuni na, akihitimu, anajitolea kuchaguliwa tena.
ii. Bwana Sachen Gudka anastaafu kimapokezano kulingana na kifungu 120 cha Mkataba na Nakala za Uanachama
wa Kampuni na, akihitimu, anajitolea kuchaguliwa tena.
iii. Mhandisi Abdulrazaq Ali anastaafu kimapokezano kulingana na kifungu 120 cha Mkataba na Nakala za
Uanachama wa Kampuni na, akihitimu, anajitolea kuchaguliwa tena.
5. Kwa mujibu wa masharti ya Kifungu cha 769 cha Sheria ya Makampuni ya 2015, Wakurugenzi wafuatao wakiwa
wanachama wa Kamati ya Ukaguzi wa Bodi watahitajika kuchaguliwa kuendelea kutumikia kama wanachama wa
Kamati iliyotajwa: -
i. Bw. Sachen Gudka
ii. Bi. Beatrice Gathirwa
iii. Bi. Caroline Kittony-Waiyaki
iv. Mhandisi. Elizabeth Rogo
6. Kuidhinisha malipo ya ada kwa Wakurugenzi wasiokuwa watendaji kwa mwaka ulioishia 30 Juni 2020.
7. Wakaguzi:
Kutambua kuwa ukaguzi wa vitabu vya hesabu za Kampuni utaendelea kufanywa na Mkaguzi Mkuu wa Hesabu
Kenya, au kampuni ya ukaguzi atakayoiteua kulingana na kifungu cha 23 cha Sheria ya Ukaguzi wa Umma, 2015.
8. Kuidhinisha Wakurugenzi kuweka kiwango cha malipo ya Wakaguzi.
9. Kuzingatia biashara nyingine yoyote ambayo ilitolewa arifa inayofaa.

Kwa Agizo la Bodi
Imelda Bore
Katibu wa Kampuni
10 Machi 2021
MAELEZO:
i. Wanahisa wanaotaka kushiriki katika Mkutano Mkuu wa Mwaka wanapaswa kujiandikisha kwa kupiga kodi
ya USSD * 483 * 904 # kwa simu yao ya rununu na kufuata vielekezo kadhaa juu ya mchakato wa usajili.
ii. Mwanahisa anayeishi nje ya Kenya anaweza kutuma barua pepe kwa Image Registrars kupitia kplcagm@image.
co.ke huku akitoa maelezo yanayomhusu kwa mfano jina, namba ya Pasipoti / kitambulisho, namba ya CDS
na nambari ya simu ya Mkononi akiomba kusajiliwa. Image Registrars itawasajili wanahisa na kuwatumia
arifa ya barua pepe mara tu wanaposajiliwa.
iii. Viungo vya kujiandikisha kupitia wavuti pia vitatumwa kwa wanahisa wote walio na anwani za barua pepe
kwenye Sajili.
iv. Kukamilisha mchakato wa usajili, wanahisa watahitaji kutoa Kitambulisho cha Kitaifa / Nambari za Pasipoti
ambazo walitumia kununua hisa zao na/au Nambari yao ya Akaunti ya CDSC. Kwa msaada wanahisa
wanapaswa kupiga nambari ifuatayo ya simu ya msaada: +254 709170 000/709170 040 kutoka 9.00 (Tatu)
asubuhi hadi 3.00 (Tisa) alasiri, kuanzia Jumatatu hadi Ijumaa. Wanahisa walio nje ya Kenya wanaweza kupiga
simu kwa nambari ya msaada kwa usaidizi wakati wa usajili.
v. Usajili wa Mkutano Mkuu utafunguliwa tarehe 10 Machi 2021 saa 9.00 (Tatu) asubuhi na utafungwa tarehe
30 Machi 2021 saa 11.00 (Tano) asubuhi. Wanahisa hawataweza kujiandikisha baada ya wakati huu.
vi. Kwa mujibu wa Kifungu cha 155 cha Vifungu vya Uanachama wa Viwanda, stakabadhi zifuatazo zinaweza
kutazamwa kwenye tovuti ya Kampuni www.kplc.co.ke.
(a) Nakala ya Ilani hii na Fomu ya Wakala;

(b) Ripoti ya Mwaka ya Kampuni na Taarifa za Fedha zilizokaguliwa kwa mwaka ulioishia 30 Juni 2021.
vii. Mwanahisa yeyote ambaye anastahili kuhudhuria na kupiga kura kwenye Mkutano Mkuu wa Mwaka anastahili
kuteua wakala kuhudhuria na kupiga kura kwa niaba yake. Wakala kama huyo sio lazima awe mwanachama
wa Kampuni. Tafadhali tembelea tovuti ya Kampuni kwa maelezo zaidi kuhusu upigaji kura na wakala.
Fomu ya Wakala hutolewa pamoja na Ripoti ya Mwaka na Akaunti ya Fedha. Fomu ya Wakala pia inaweza
kupatikana kutoka kwa wavuti ya Kampuni www.kplc.co.ke au kutoka Image Registrars Limited, Absa Towers
(zamani Barclays Plaza), Ghorofa ya 5, Barabara ya Loita, S. L. Posta 9287 - 00100, Nairobi, Kenya. Wanahisa
ambao hawataki kuhudhuria Mkutano Mkuu wanaweza kuchagua kukamilisha na kurudisha Fomu ya Wakala
kwa Image Registrars Limited, au vinginevyo kwa Ofisi iliyosajiliwa ya Kampuni ili kufika chini ya masaa
arobaini na nane (48) kabla ya wakati uliotengewa kwa Mkutano.
Fomu za wakala zilizotiliwa sahihi vizuri zinaweza pia kutumwa kwa barua pepe kplcagm@image.co.ke
katika mfumo wa PDF. Fomu ya wakala inapaswa kutiwa saini na aliyemteua au wakili wake ikiidhinishwa
kihalali kwa maandishi. Ikiwa mteule ni shirika, uteuzi wa wakala utatolewa kwa muhuri wa Kampuni au kwa
mamlaka ya afisa au wakili aliyeidhinishwa kihalali na shirika hilo.
viii. Wanahisa wanaotaka kuuliza maswali yoyote au ufafanuzi kuhusu Mkutano Mkuu wanaweza kufanya hivyo
si chini ya masaa arobaini na nane (48) kabla ya muda uliowekwa kwa Mkutano kupitia:
(a) Kutuma maswali yaliyoandikwa kwa barua pepe kplcagm@image.co.ke; au

(b) Kwa kadri inavyowezekana, kuwasilisha moja kwa moja au kutuma maswali yao kimaandishi huku
wakionyesha anwani ya posta au barua pepe ya kutarajia majibu kwa ofisi iliyosajiliwa ya Kampuni au
S.L.P 30099 - 00100, Nairobi, au kwa Ofisi za Image Registrars S.L.P. 9287 - 00100, Nairobi, Kenya.
(c) Wanahisa lazima watoe maelezo yao kamili (majina kamili, Kitambulisho cha Kitaifa / Nambari ya
Pasipoti / Nambari ya Akaunti ya CDSC) wakati wa kuwasilisha maswali yao au ufafanuzi.
Wakurugenzi wa Kampuni watatoa majibu kimaandishi kwa maswali yaliyopokelewa kwa anwani ya majibu,
ya posta au barua pepe iliyotolewa na Mwanahisa kabla ya saa kumi na mbili (12) kuanza kwa Mkutano
Mkuu. Orodha kamili ya maswali yote yaliyopokelewa, na majibu yake yatachapishwa kwenye wavuti ya
Kampuni saa kumi na mbili (12) kabla ya Mkutano Mkuu kuanza.
ix. Mkutano Mkuu wa Mwaka utapeperushwa moja kwa moja kupitia kiunga ambacho kitatolewa kwa wanahisa
wote ambao watakuwa wamejiandikisha kushiriki katika Mkutano Mkuu. Wanahisa na wawakilishi waliosajiliwa
watapokea huduma ya ujumbe mfupi (SMS /USSD) kwa nambari zao za simu zilizosajiliwa, masaa ishirini na
nne (24) kabla ya Mkutano Mkuu wa Mwaka kama ukumbusho wa Mkutano Mkuu. Ujumbe wa pili wa SMS
/USSD utatumwa saa moja (1) kabla ya Mkutano Mkuu, kama ukumbusho kwamba Mkutano Mkuu utaanza
baada ya saa moja na kutoa kiunga kwa uwasilishaji wa moja kwa moja.
x. Wanahisa na wakala ambao wamejisajili kuhudhuria Mkutano Mkuu wanaweza kufuata mashauriano
kwenye mkutano kupitia mfumo wa moja kwa moja, kupata ajenda na kupiga kura wakati wanachochewa
na Mwenyekiti kupitia vidokezo vya USSD.
xi. Matokeo ya maazimio yaliyopigiwa kura yatachapishwa kwenye wavuti ya Kampuni ambayo ni, www.kplc.
co.ke ndani ya masaa ishirini na nne (24) kufuatia kumalizika kwa Mkutano Mkuu.
PROXY FORM
The Company Secretary
Kenya Power and Lighting Company Plc
P.O. Box 30099-00100
Nairobi, Kenya
I/WE _________________________________________________ CDSC No _______________________________
of P.O. Box ____________________________________________ being a shareholder of the above Company.
HEREBY APPOINT ______________________________ of P.O. Box__________ and Mobile No._______________

or failing him/her the Chairman of the Meeting as my/our proxy to attend, represent and vote for me/us on my/our
behalf at the Annual General Meeting (AGM) of the Company to be held electronically on 1st April 2021 at 11.00am
and at any adjournment thereof.
Signed this _________________ day of ______________________________ 2021
Signature______________________________________________________________________________
I/WE direct my/our proxy to vote on the following resolutions as I/WE have indicated by marking the appropriate box
with an ‘X’. If no indication is given, my/our proxy will vote or withhold his or her vote at his or her discretion and I/WE
authorize my/our proxy to vote (or withhold his or her vote) as he or she thinks fit in relation to any other matter which is
properly put before the Meeting.
Please clearly mark the box below to instruct your proxy how to vote;
Item Business For Against Withheld
1 To receive, consider and adopt the Company’s Audited Financial Statements for the
year ended 30th June 2020, together with the Chairman’s, Directors’ and Auditors’
Reports thereon.
2 Election of Directors:
(i) Mr. Kairo Thuo retires by rotation in accordance with Article 120 of the
Memorandum and Articles of Association of the Company and, being eligible,
offers himself for re-election.
(ii) Mr. Sachen Gudka retires by rotation in accordance with Article 120 of
the Memorandum and Articles of Association of the Company and, being
eligible, offers himself for re-election.
(iii) Eng. Abdulrazaq Ali retires by rotation in accordance with Article 120 of
the Memorandum and Articles of Association of the Company and, being
eligible, offers himself for re-election.
3 Election of Board Audit Committee Members:

In accordance with the provisions of Section 769 of the Companies Act 2015, the
following Directors being members of the Board Audit Committee will be required to
be elected to continue serving as members of the said Committee: -
(i) Mr. Sachen Gudka
(ii) Mrs. Beatrice Gathirwa
(iii) Ms. Caroline Kittony-Waiyaki
(iv) Eng. Elizabeth Rogo
4 To approve payment of fees to non-executive Directors for the year ended 30th June
2020.
5 To note that the audit of the Company’s books of accounts will continue to be
undertaken by the Auditor-General Kenya, or an audit firm appointed by her in
accordance with section 23 of The Public Audit Act, 2015.
6 To authorise the Directors to fix the Auditors’ remuneration.
ELECTRONIC COMMUNICATIONS CONSENT FORM
Please complete in BLOCK CAPITALS
Full name of member (s): ____________________________________________________________________________

Address: _____________________________________________________________________________________
CDSC No _____________________________________________________________________________________
Mobile _____________________________________________________________________________________
Date: _____________________________________________________________________________________
Signature: _____________________________________________________________________________________
Please tick the boxes below and return to Image Registrars at P.O. Box 9287- 00100 Nairobi,5th floor, Absa Towers
(formerly Barclays Plaza), Loita Street or alternatively to the Registered Office of the Company:
Approval of Registration
I/WE approve to register to participate in the virtual Annual General Meeting to be held on
1st April 2021.
Consent for use of the Mobile Number provided
I/WE would give my/our consent for the use of the mobile number provided for purposes
of voting at the AGM.
Notes:
1. In accordance with Section 298(1) of the Companies Act, shareholders entitled to attend and vote at the AGM are
entitled to appoint a proxy to vote on their behalf. A proxy need not be a member of the Company but, if not the
Chairman of the AGM, the appointed proxy will need access to a mobile telephone.
2. This proxy must be signed by the appointer or his attorney duly authorized in writing. If the appointer is a body
corporate, the instrument appointing the proxy shall be under the hand of an officer or duly authorized attorney of
such body corporate.
3. To be valid the form of proxy should be completed, signed and delivered (together with a power of attorney or other
authority (if any) under which it is assigned or a notarized certified copy of such power or authority kplcagm@image.
co.ke or delivered to Registered Office of the Company or posted to the Company Secretary P.O. Box 30099 – 00100
Nairobi, or to Image Registrars Limited, 5th Floor Absa Towers (formerly Barclays Plaza), Loita Street, P.O. Box 9287
– 00100, Nairobi, so as to be received not later than 30th March 2021 at 11.00 a.m.
4. Any person appointed as a proxy should submit his/her mobile telephone number to the Company no later than 30th
March 2021 at 11.00 a.m. Any proxy registration that is rejected will be communicated to the shareholder concerned
no later than 30th March 2021 at 11.00 a.m. to allow time to address any issues.
5. As a shareholder you are entitled to appoint one or more proxies to exercise all or any of your shareholder rights
to attend and to speak and vote on your behalf at the meeting. The appointment of the Chairman of the meeting as
proxy has been included for convenience. To appoint as a proxy any other person, delete the words “the Chairman
of the Meeting or” and insert the full name of your proxy in the space provided. A proxy need not to be a shareholder
of the Company.
6. Completion and submission of the form of proxy will not prevent you from attending the meeting and voting at the
meeting in person, in which case any votes cast by your proxy will be excluded.
7. A “vote withheld” option has been included on the form of proxy. The legal effect of choosing this option on any
resolution is that you will be treated as not having voted on the relevant resolution. The number of votes in respect
of which votes are withheld will, however, be counted and recorded, but disregarded in calculating the number of
votes for or against each resolution.

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.,.

MANAGING DIRECTOR & CEO’S REPORT_________________________________________ 23

CORPORATE GOVERNANCE REPORT_____________________________________________ 29

DIRECTORS’ RENUMERATION REPORT___________________________________________ 53

STATEMENT OF DIRECTOR’S RESPONSIBILITIES __________________________________ 56

REPORT OF THE AUDITOR GENERAL ___________________________________________57-66

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020_________________________ 68

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020__________ 69

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020__________________ 70

TEN YEAR FINANCIAL AND STATISTICAL RECORDS____________________________137-140

STATISTICAL TABLES____________________________________________________________ 141

NOTICE OF THE ANNUAL GENERAL MEETING____________________________________ 155

PROXY FORM___________________________________________________________________ 159

Scope of the Report

SECRETARY Imelda Bore

REGISTERED OFFICE Stima Plaza

BANKERS Standard Chartered Bank Kenya Plc Citi N.A.

Kenya Commercial Bank Plc Equity Bank Kenya Plc

The Co-operative Bank of Kenya Plc Commercial Bank of Africa

Stanbic Bank Plc Absa Bank Kenya Plc

DELEGATED AUDITOR Ernst & Young LLP

PRINCIPAL LEGAL ADVISOR Hamilton Harrison & Mathews Advocates

Delta Office Suites, Waiyaki Way

Energy Purchased (GWh) Generation Mix 2019/20

Electricity Sales (GWh) Peak Demand (MW)

Ms. Vivienne Yeda, OGW, LL.B, LL.M, MBA

Mr. Bernard Ngugi, MCIPS, MKISM, CPA (K),

Dr. Eng. Joseph Njoroge, CBS, PhD, MBA, BSc. (Eng.),

Ms. Caroline Kittony-Waiyaki, LLB, Dip. (Law)

Mr. Sachen Gudka, BSc. (Econ.), Chartered

Mrs. Beatrice Gathirwa, B. Com, MBA, CPA(K)

Ms. Imelda Bore, LL.B, LL.M, Dip(Law), H.Dip (HR),

General Manager, Legal,

General Manager, Infrastructure General Manager, Network

6. Kuboresha Utoaji wa Huduma katika Ngazi ya Kaunti

1. Composition and Appointment of the Board

3. Responsibilities of the Board

ii. Establishing sound system of internal control for the Company.

iii. Overseeing the corporate governance framework.

Audit Committee Corporate Governance Committee

Finance & Risk Committee Strategy & Innovation Committee

ovides strategic direc

COMMITTEE(Headed by MD & CEO)

Consider a ormance, monitors

(Reports to t e Mana n ﬃcer)

Commercial Services &

Supply Chain & Logistics

REGIONAL, COUNTY AND DEPARTMENTAL MANAGERS

(Coordinates diverse Company business functions)

Board Member Board Position 14 Meetings

Amb. (Eng.) Mahboub Mohamed Chairman 14/14

Mr. Henry Rotich Cabinet Secretary, The National Treasury -

Dr. Eng. Joseph Njoroge Principal Secretary, Ministry of Energy 1/1

Mr. Wilson Mugung’ei Member 13/14

Mr. Adil Khawaja Member 11/14

Mr. Kairo Thuo Member 13/14

Mrs. Brenda Eng’omo Member 13/14

Hon. Zipporah Kering Member 14/14

Eng. Isaac Kiva Alternate PS, Ministry of Energy 14/14