Tax savings on Olkaria V project doubles KenGen’s profits

By: MARGARET NJUGUNAH 1 min read
Tax savings on Olkaria V project doubles KenGen’s profits
Miano also attributed the growth to the roll-out of the company’s business diversification strategy, which has seen the company clinch two drilling contracts in Ethiopia/FILE
Miano also attributed the growth to the roll-out of the company’s business diversification strategy, which has seen the company clinch two drilling contracts in Ethiopia/FILE

 

NAIROBI, Kenya, Feb 28 – Kenya Electricity Generating Company, KenGen, has posted a 98 percent increase on its profit after tax to hit Sh8.17 billion for the first half of the 2019/2020 financial year ending December 2019.

The company has attributed the growth to tax savings arising from the completion of 165MW Olkaria V geothermal project which also resulted in a tax credit of Sh1.89 billion, compared to a tax expense of Sh1.9 billion in the previous period.

KenGen also realized a 127 percent growth in other income, from Sh211 million in 2018 to Sh479 million for the six months ended December 31st, 2019.

The company’s Managing Director and CEO Rebecca Miano attributed the growth to the roll-out of the company’s business diversification strategy, which has seen the company clinch two drilling contracts in Ethiopia.

Analysts at Genghis Capital expect KenGen to have a buoyant financial performance this year, pegged on the geothermal capacity increase, additional contractual revenue streams and the large tax credit.

MARGARET NJUGUNAH

MARGARET NJUGUNAH

Margaret Njugunah is Capital FM’s Business Editor responsible for radio and website business content. A Mass Communications Graduate of St. Paul’s University, Njugunah joined Capital FM in 2015 as a business reporter. Her specialist areas are financial news, economic reporting, technology, corporate and development news.