Utility firm Kenya Power has posted a 35.61 per cent increase in profits after tax boosted by a sharp drop power purchase costs and a marginal increase in electricity sales.

Kenya’s power distributor on Wednesday said that its profits through the half year ended December 2012 rose to Ksh3.09 billion ($36 million) compared to Ksh2.28 billion ($26.85 million) posted as at the end of December 2011.

Purchase power costs which include fuel and foreign exchange costs dropped by 19.64 per cent to Ksh31.04 billion ($360.82 million) from Ksh38.62 billion ($454.1 million) as a result of a drop in the costs of the two components.

The power distributor spent Ksh16.68 billion ($193.96 million) on fuel costs in the six months to December last year, a 30.1 per cent drop from Ksh23.87 billion ($280.61 million) it spent on the fuel costs in the six months to December the previous year.

At the same time foreign exchange costs which are determined by the movement of Kenya’s currency dropped by 45.02 per cent to Ksh2.17 billion ($33.3 million) compared to Ksh3.94 billion ($45.8 million) over the same period of time.

Power purchased from Uganda Electricity Transmission Company, Tanzania Electric Supply Company and Ethiopia Electricity Power rose by 22.78 per cent to Ksh112.15 million ($1.42 million) as at December 2012 compared to Ksh99.48 million ($1.16 million) as at December 2011 while total power purchased from 11 power generating companies stood at Ksh12.18 billion ($141.62 million).