Kenya Electricity Generating Company PLC (KenGen), has reported a significant 48% growth in profit after tax for the year ended June 30, 2023, surging to Ksh.5.02 billion up from Ksh.3.4 billion in the previous year.
At the same time, the NSE-listed company has reported a steady 14% growth in revenues from Ksh.47.48 billion in 2022 to Ksh.53.96 billion, largely driven by the company’s investments in geothermal energy.
“In a landscape filled with both opportunities and challenges, the KenGen team has demonstrated remarkable resilience. We are proud to announce a remarkable Ksh.5.02 billion representing a 48% growth in our profit after tax,” said the Managing Director and CEO Peter Njenga.
Adding “This achievement reflects the hard work and dedication of our team and our commitment to providing clean, reliable energy to Kenyans,”
Speaking in Mombasa, Njenga attributed the impressive performance to the enhanced operational efficiency of the company’s geothermal fleet in Olkaria, Naivasha, further bolstered by a positive impact of the newly commissioned Olkaria I Additional Unit 6 geothermal power plant which added 86MW to the grid in July 2022.
“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” said Njenga.
However, KenGen reported an increase in operating costs which the CEO attributed to rising insurance and impairment costs.
This was however matched by growth in revenue resulting in a pre-tax profit of Ksh.8.5 billion, which was a substantial improvement from Ksh.6.2 billion reported in the previous year.
“We are confident that our Good-to-Great Transformation Strategy is on course and will continue to deliver growth over the next decade to ensure a reliable supply of clean and affordable energy to the people of Kenya,” said Njenga, adding that the company contributed over 66% of Kenya’s electricity consumption in the year.
The NSE-listed company CEO said KenGen had helped cushion Kenyans from the effects of climate change which has seen rainfall levels drop in the country over the past few years.
He said: “Notably, our investments in geothermal energy ensured uninterrupted electricity supply, even in the face of challenges posed by a prolonged drought and reduced hydropower generation.”
Looking ahead, KenGen will be banking on the growth in demand for electricity in Kenya which continues to soar at about 5% annually. In line with the demand and the Least Cost Power Development Plan (LCPDP), the company has announced ambitious plans to augment generation capacity by more than 154MW over the next two years through the rehabilitation and uprating of its existing power plants.
“One of the projects we are looking to deliver soon include the Gogo Hydropower Redevelopment Project in Migori County which was approved by cabinet recently and is set to elevate the dam's electricity capacity from its current 2MW to 8.6MW,” said Njenga.
KenGen boasts a diverse energy portfolio, including geothermal, hydro, wind, and thermal adding up to 1,904MW of which 86% is drawn from renewable sources.
