KPLC workers on a transmission line. PHOTO | NMG
KPLC workers on a transmission line. PHOTO | NMG

Kenya Power Managing Director and CEO, Bernard Ngugi in shock over blinking insolvency at the firm. The firm may be declared bankrupt by June 2020.

Kenya Power, a monopoly that sweeps in more than Sh130 billion a year in revenues, is broke and is now running dangerously closer and management claims by the end of 2019-2020 it may be declared bankrupt.

The power distributor, which has been on the dangerous path that leads firms into financial distress for the past three years, has now become technically insolvent.

This is after its current liabilities, the amount that falls due and that it must have to pay its creditors in the next 12 months, has expanded so fast to overtake its current assets.

According to the latest financial statements for the year ended June 2019 shows that it only managed to clutch a net profit of Sh262million, out of enviable revenues of Sh133 billion.

This translates to a 92 per cent profit drop from the Sh3.2billion in net profits the company made in a similar period in 2018. At Sh262 million, the company went 16 years back since it returned to the profit territory in 2004.

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