The Kenya Electricity Generating Company PLC (KenGen) has announced a remarkable 35% increase in profit after tax for the fiscal year ending June 30, 2024. The company reported profits of KSh 6.8 billion (approximately $52.7 million), up from KSh 5 billion (around $38.7 million) the previous year. This financial growth is attributed to the strong performance of its geothermal and hydroelectric power plants.
Key Financial Highlights
- Electricity Dispatch: KenGen dispatched 8,384 GWh of electricity during the fiscal year, an increase from 8,027 GWh in 2023, despite challenges posed by volatile weather and inflationary pressures affecting many businesses in Kenya.
- Finance Income Surge: The company saw its finance income skyrocket by 149% to KSh 4.2 billion (around $32.5 million) in 2024, nearly tripling the KSh 1.7 billion recorded in 2023.
- Stable Operating Profit: KenGen maintained a stable operating profit of KSh 9.6 billion (approximately $74.4 million) by focusing on cost management and efficiency improvements.
Strategic Commitment to Renewable Energy
Peter Njenga, KenGen’s Managing Director and CEO, stated, “This impressive growth not only strengthens our financial position but also signals greater returns for shareholders while enhancing our ability to invest in critical renewable energy projects.” He emphasized that KenGen’s geothermal and hydroelectric facilities were vital in meeting the country’s peak electricity demand of 2,149 MW during the review period.
Despite the decommissioning of more than 130 MW of fossil fuel-powered plants, KenGen’s power generation output grew by 4%. Njenga noted, “The shift to green energy is part of our broader push to meet rising energy demand while reducing our carbon footprint, aligning with the Government of Kenya’s ambitious renewable energy goals of transitioning to 100% green energy by 2030.”
Future Outlook and Projects
KenGen plans to diversify its revenue streams through new initiatives, including the establishment of a Green Energy Park at Olkaria. This park aims to provide industries with a platform to operate sustainably. Additionally, the company is expanding its commercial drilling services for geothermal development throughout the region, which is expected to enhance its financial performance.
The company’s Good-2-Great (G2G) 2024–2034 Corporate Strategy aims to increase renewable energy capacity by approximately 1,500 MW while enhancing operational efficiency and leveraging advanced technologies.
Conclusion
KenGen’s strong financial performance underscores its critical role in Kenya’s renewable energy landscape and its commitment to sustainable practices. With several major renewable energy projects in the pipeline, KenGen is poised for continued growth, ultimately supporting Kenya’s socio-economic development goals.
