NAIROBI, Kenya, Oct 29 – KenGen net profit for the full year ending June 2024 expanded by 35 percent to Sh6.8 billion on improved geothermal and hydroelectric revenues.
In 12 months to June last year, the power produced profit after tax stood at Sh5 billion.
KenGen Managing Director and CEO Peter Njenga said that the firm was able to post better performance by minimizing management costs and improving efficiency.
“Despite the harsh global macroeconomic challenges, characterized by high inflation and foreign exchange fluctuations, we were able to instill financial discipline and prudent cost management measures in our operations, which has seen us flatten the operational costs,” Njenga said, adding revenue rose to Sh56 billion, an improvement of Sh2.3 billion from 2023.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers.”
In the review period, KenGen dispatched 8,384 gigawatthours (GWh) of electricity, up from 8,027GWh, coming at a time of volatile weather conditions and inflationary pressures.
High power generation helped meet the country’s peak electricity demand of 2,149 megawatts (MW).
“The company’s power generation output grew by 4% despite the decommissioning of over 130MW of fossil fuel-powered plants in Kipevu and Muhoroni in the year,” the company stated.
Kenya is regarded as a leader in Africa’s clean power generation, with up to 90 percent of its electricity generated from renewable sources.
KenGen, which produces about 70 percent of the electricity consumed in the country, is a big player in the country’s renewable power generation, particularly through its geothermal projects.
“Looking ahead, KenGen says it plans to focus on revenue diversification through projects such as the establishment of a Green Energy Park at Olkaria, which will provide industries with a platform to operate sustainably,” KenGen stated.
“The company is also providing commercial drilling services for geothermal development across the region, a move that is expected to further bolster its financial performance.”
