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Vivienne Yeda-led Kenya Power rebounds from losses, profit soars above $13 million in H1 2021

Kenya Power transmits, distributes and retails electricity to customers throughout Kenya.

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Kenyan businesswoman Vivienne Yeda.

Kenya-based electricity distributor Kenya Power and Lighting Company has rebounded from last year’s losses, as profit surged above $13 million in the first half of 2021.

Compared to its losses last year of Ksh939 million ($8.4 million), the Kenya-based electricity distributor reported a profit of Ksh1.49 billion ($13.38 million) in the first half of its 2021 financial year, which ended on June 30.

Meanwhile, revenue grew by 8.4 percent from Ksh133.26 billion ($1.2 billion) in the first half of 2020 to Ksh144.12 billion ($1.3 billion) in the first half of 2021 on the back of increased unit sales from 8,171 GWh to 8,571 GWh, owing to an expanded customer base and increased economic activity.

The triple-digit growth in the company’s earnings was driven by a Ksh9.755-billion ($88 million) increase in electricity sales to Ksh125.93 billion ($1.13 billion), coupled with cost-optimization strategies that led to a reduction in operating costs and finance costs.

Figures contained in the H1 2021 report revealed that operating costs decreased from Ksh47.83 billion ($429.5 million) in 2020 to Ksh39.9 billion ($358.3 million), while finance costs spurred by a lower debt profile dropped from Ksh12.48 billion ($112.1 million) the previous year to Ksh9.1 billion ($81.7 million).

Kenya Power is a public liability company that transmits, distributes and retails electricity to customers throughout Kenya under the leadership of Vivienne Yeda, who was appointed the chairman of the board in November 2020.

In addition to electricity distribution, the company offers optic fiber connectivity to telecom companies through its optical fiber cable network, which runs along its high voltage power lines in the country.

In line with its strong financial performance during the half-year period, the total value of the company’s assets since the start of the year has risen from Ksh325.27 billion ($2.92 billion) to Ksh332.23 billion ($2.98 billion), while shareholder equity increased from Ksh55 billion ($494 million) to Ksh57.2 billion ($513.7 million).

As of press time, Nov.2, shares in the company were trading at Ksh1.98 ($0.01778), 15.8-percent higher than the opening price at the beginning of the year.

East Africa

Kenyan banking exec Andrew Ndegwa gains $1.5 million in 43 days from investment in NCBA Group

Ndegwa, an executive director of First Chartered Securities Limited, owns 4.3 percent of NCBA Group.

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Andrew Ndegwa.

After losing a sizable portion of its market capitalization in the first half of 2022, NCBA Group has seen its share price soar above its opening price at the start of this year.

NCBA Group is a financial services conglomerate based in Kenya.

Due to the recent gains in the company’s share price, Kenyan banking tycoon Andrew Ndegwa has seen the market value of his stake in the conglomerate increase by more than $1.5 million over the past 43 days.

As of press time on Aug. 12, shares in NCBA Group were trading at Ksh26.2 ($0.22), 4.73-percent less than their opening price this morning as wary investors took advantage of the high price to sell off some of their positions in the bank.

Since June 30, shares in the Nairobi-based financial services provider have risen by 11 percent, from Ksh23.6 ($0.198) per share to Ksh26.2 ($0.22) per share, driven by a resurgence in buying interest among market participants.

Ndegwa, an executive director of First Chartered Securities Limited, owns 4.3 percent of NCBA Group. He has seen the market value of his stake rise from Ksh1.67 billion ($14.02 million) on June 30 to Ksh1.86 billion ($15.57 million) due to the recent bullish sentiment on the NSE floor.

As a result, the banking tycoon has gained a total of Ksh184.36 million ($1.54 million) over the past 43 days, solidifying his status once more as one of the wealthiest investors on the NSE.

Meanwhile, James Ndegwa, his brother and the former head of Kenya’s capital markets authority, has seen his 4.23-percent stake in NCBA Group increase by $1.47 million over this same period.

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East Africa

Malagasy tycoon Hassanein Hiridjee says Africa needs to invest in clean energy transition

Hiridjee is one of Madagascar’s wealthiest and most powerful business leaders.

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Malagasy tycoon Hassanein Hiridjee.

Malagasy multimillionaire businessman and AXIAN Group CEO Hassanein Hiridjee has stated that Africa must invest in a clean energy transition to bolster the continent’s renewable energy capacity.

“We must double our commitment within Africa to increase investments to shape our own energy destiny in order to meet long-term goals,” Hiridjee said.

Millions of Africans could be lifted out of energy poverty with the right strategy and investment in clean energy transition projects stimulated by collective action from the private and public sectors, he said.

His statement comes after U.S. billionaire Michael Bloomberg pledged $242 million to assist developing countries, including African nations, in transitioning away from non-renewables.

Hiridjee explained that such funding is needed to combat Africa’s continuing energy crisis, in which hundreds of millions lack access to basic electricity.

He added that the lack of access to basic electricity is only worsening as a result of the war in Ukraine and COVID-19, with 25 million more Africans living without electricity than before the pandemic.

Infinity Group, a leading renewable energy company led by Egyptian billionaire Mohamed Mansour, recently partnered with the Africa Finance Corporation to acquire Lekela Power, making Infinity the continent’s largest renewable energy company.

Hiridjee, one of Madagascar’s wealthiest and most powerful business leaders, has also played a formative role in developing commercially viable energy solutions that provide Africans with efficient, long-term access to energy resources.

Earlier this year, Axian Group completed the expansion of the Ambatolampy solar power plant in Madagascar, from 20 to 40 MWp.

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East Africa

Ugandan tycoon Charles Mbire to pocket $1.15-million interim dividend from MTN Uganda

Mbire owns a significant 3.98-percent stake in the Ugandan telecom outfit.

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Charles Mbire.

Ugandan multimillionaire businessman Charles Mbire is on track to receive an interim dividend of Ush4.48 billion ($1.155 million) from his stake in MTN Uganda after the telecom group reported a double-digit percent increase in earnings in the first half of 2022.

MTN Uganda is Uganda’s leading telecom service operator.

Mbire, the chairman of MTN Uganda and one of Uganda’s wealthiest businessmen, owns a significant 3.98-percent stake in the Ugandan telecom outfit, which operates as the fourth operating subsidiary of the South African multinational mobile telecom company, MTN Group.

The interim dividend will be paid electronically into his bank account at a later date from the group’s retained earnings of Ush902 billion ($232.4 million) at the end of its 2022 fiscal year. It is his first dividend from the telecom company since its shares were listed more than eight months ago.

The dividend payment follows a significant rise in the group’s earnings in the first half of 2022 despite a 4.9-percent decline in voice revenue, as it looks set to replicate its stellar performance in 2021.

As a result of the company’s strong financial performance, the board of directors approved the payment of an interim dividend of Ush5 ($0.00128) per share for the six months ending June 30, totaling Ush11.95 billion ($28.9 million), which is subject to withholding taxes.

According to data retrieved from the company’s earnings report for the first six months of 2022, its profit increased by 48.1 percent to Ush193.6 billion ($50.2 million) in the first half of 2022, compared to Ush130.7 billion ($33.7 million) in the first half of 2021.

The double-digit increase in profit can be attributed to a 10-percent surge in the company’s service revenue, which was driven by a significant increase in data and fintech revenue, which were more than sufficient to offset the 4.9-percent decline in voice revenue.

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