KenGen net profit up 79pc to Sh5.3bn in H1

KenGen net profit up 79pc to Sh5.3bn in H1
KENGEN MD

NAIROBI, Kenya, Jan 6 – Kenya Electricity Generating Company (KenGen) has reported a 79 percent increase in profit after tax for the six months ending December 31, 2024.

The electricity producer posted a net profit of Sh5.3 billion, up from Sh2.96 billion in the same period last year.

KenGen says the growth was largely attributed to strategic cost-cutting initiatives and operational efficiencies that helped the company streamline operations while maintaining stable revenues of Sh27.5 billion.

The company also recorded a 49.4 percent rise in operating profit, reaching Sh6.65 billion, up from Sh4.45 billion.

This performance was supported by a 13.7 percent reduction in operating expenses, which fell to Sh17.67 billion from Sh20.47 billion.

Likewise, its finance income rose to Sh2.45 billion, driven by higher returns on investments and a more stable Kenyan shilling, while finance costs were reduced to Sh1.13 billion from Sh1.49 billion, signalling improved capital management.

Its Managing Director, Peter Njenga, asserted that the strong close is a testament to KenGen’s financial discipline and strategic focus on efficiency.

“We are optimizing our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country,” he said.

He disclosed that the company is keen on diversifying with a scaled-up focus on expanding its renewable energy portfolio.