Kenya Electricity Generating Company PLC (KenGen) has reported a significant 48 percent growth in profit after tax for the year ended June 30, 2023, surging to Sh.5.02 billion compared to Sh.3.4 billion in the previous year.
Speaking with the media in Mombasa the Managing Director and CEO Eng. Peter Njenga said that the NSE-listed company has reported a steady 14 percent growth in revenues from Sh47.48 billion in 2022 to Sh53.96 billion, largely driven by the company’s investments in geothermal energy.
Njenga attributed the achievement 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 1 additional Unit 6 geothermal power plant which added 86 megawatts to the grid in July 2022.
“The commissioning of the Olkaria 1 AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918 GWh in 2022 to 8,027 GWh,” he said.
He noted that, in a landscape filled with both opportunities and challenges, the KenGen team has demonstrated remarkable resilience.
“We are proud to announce a remarkable Sh5.02 billion representing a 48 percent growth in our profit after tax. This achievement reflects the hard work and dedication of our team and our commitment to providing clean, reliable energy to Kenyans,” he said.
The CEO said the company has also reported an increase in operating costs which he attributed to rising insurance and impairment costs adding that this was however matched by growth in revenue resulting in a pre-tax profit of Sh8.5 billion, which was a substantial improvement from Sh.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,” he said.
He said that the company contributed over 66 percent of Kenya’s electricity consumption in the year.
The CEO noted that the company’s investments in geothermal energy ensured uninterrupted electricity supply even in the phase of challenges caused by prolonged drought and reduced hypo-generation.
“Our diverse portfolio of geothermal, hydro, wind and thermal resources with a total capacity of 1904 megawatts delivers a total of 8027 gig watts this year,” he said.
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 154 megawatts 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 includes 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 2 megawatts (MW) to 8.6megawatts,’ said Njenga.
KenGen boasts a diverse energy portfolio, including geothermal, hydro, wind, and thermal adding up to 1,904megawatts of which 86 percent is drawn from renewable sources.
By Chari Suche
