UPDATE 1-Kenya Power full-year profit down by a quarter
(Adds detail, background, company comment)
NAIROBI Oct 10 (Reuters) - Kenya Power's full-year pretax profit fell by a quarter to 6.42 billion shillings ($75.13 million) for the year to June 30, hurt by higher financing costs as it expands its network.
The sole electricity transmission company in the east African nation, which suffers from frequent blackouts because of generation shortfalls and ageing grids, has had to contend with increasing customer connections, particularly in rural areas.
"This put a huge financial pressure on the company and the programme was halted in January 2013 due to unsustainable liquidity challenges," Kenya Power said in a statement.
The company's finance costs for the year more than doubled to 2.5 billion shillings on the back of additional medium and short-term loans taken by the company.
The company has asked the country's energy regulator to allow it to raise tariffs and said that it is hopeful of a decision soon. ($1 = 85.4500 Kenyan shillings) (Reporting by Duncan Miriri; Editing by James Macharia and David Goodman)
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