(Updates with tax rate in third paragraph and analyst comment in fourth.)
Oct. 26 (Bloomberg) -- Kenya Electricity Generating Co., the East African nation’s biggest power producer, said full-year profit fell 37 percent after operating expenses grew and the company’s tax rate increased.
Net income declined to 2.08 billion shillings ($21 million) in the 12 months through June, from 3.29 billion shillings a year earlier, the Nairobi-based company said in a statement e- mailed by the city’s stock exchange today. Revenue climbed 31 percent to 14.4 billion shillings, it said.
Operating expenses in the company jumped to 10 billion shillings from 8.6 billion shillings a year earlier while the tax rate increased to 30 percent from 25 percent after a five- year concession following its initial public offer ended, Managing Director Eddy Njoroge said in the statement.
“The increased tax rate is a huge impact,” George Bodo, an equity strategist at Nairobi-based Apex Africa Capital Ltd. said in a phone interview. “Going forward, the bottom line will be continually impacted because of that tax aspect.”
--Editors: Ana Monteiro, Alastair Reed
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