Ndindi Nyoro Boosts Ownership in Kenya Power with 5.2M Shares
Legislator Ndindi Nyoro has acquired an extra 5.2 million shares in Kenya Power, strengthening his position as the primary individual owner with the highest stake in the predominant electricity distribution company.
In June 2023, as per regulatory documents, Mr. Nyoro increased his ownership in the company to 32.5 million shares, representing approximately 1.67 percent ownership in the utility. This is in contrast to the 27.29 million shares he held in the company during the same month in the previous year.
The value of his existing stake in the utility company that is facing difficulties is assessed at Sh48.75 million. Moreover, the extra acquisitions made during the period concluding in June amount to almost Sh7.92 million.
Over the past year, Kenya Power’s stocks have experienced a slight increase of 4.83%. The closing price on the Nairobi Securities Exchange (NSE) for Thursday was Sh1.52 per share, as opposed to Sh1.45 per share in August 2022.
Mr Nyoro, who chairs the Budget and Appropriations Committee in the National Assembly, said last September he started his investment journey in the equity market as a first-year student at Kenyatta University.
Kenya Power, one of the companies considered to be underestimated on the Nairobi Securities Exchange (NSE), is currently facing challenges due to a depreciating shilling. This has negatively impacted its earnings for the fiscal year that concluded in June.
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The company under State control notified investors in May that its net profits for the fiscal year under review would decrease by over 25% when compared to the previous year’s earnings of Sh3.5 billion.
The sharp depreciation of the shilling in a downward motion has notably amplified the challenge of repaying business loans denominated in dollars, as well as acquiring electricity, the cost of which is based on the US currency.
As per official exchange rates, the value of the Kenyan currency decreased by roughly 18.20% compared to the US dollar. It ended at 140.52 units in June, dropping from 118.89 units in July 2022.
Kenya Power reported a net loss of 1.1 billion Kenyan Shillings for the six months concluding in December. This financial decline was attributed to the devaluation of the local currency and the reduction of electricity tariffs by 15%, which took effect in January 2022 during the presidency of Uhuru Kenyatta.
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The William Ruto government ended the power subsidies in late December.
The power distributor had approximated that the reduction in earnings due to the tariff reduction from January to December 2022 amounted to Sh26 billion.
The company experienced a rise in its earnings in April due to the endorsement of higher electricity rates by the Energy and Petroleum Regulatory Authority. This marked the initial increase since 2018 and had the most significant impact on middle-class families and small business users.
As per the most recent data from the Kenya National Bureau of Statistics, in July, people and businesses spent an average of Sh1,320.50 to purchase 50 kilowatt-hours of electricity. This amount reflects an increase of 65.7% compared to the previous year when the cost was Sh796.83.
Ndindi Nyoro Boosts Ownership in Kenya Power with 5.2M Shares
