Kenya Electricity Generating Company (KenGen) has announced a remarkable 35% increase in profit after tax for the fiscal year ending June 30, 2024, reaching Ksh 6.8 billion, up from Ksh 5 billion. This growth is primarily attributed to a substantial rise in revenues from its geothermal and hydroelectric power plants.
The company’s finance income saw a staggering 149% increase, climbing to Ksh 4.2 billion in 2024, nearly tripling from Ksh 1.7 billion in 2023. This significant boost has reinforced KenGen’s overall profit, highlighting its effective financial management in a challenging economic environment.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders and enhances our ability to invest in critical renewable energy projects,” said Peter Njenga, KenGen’s Managing Director and CEO.
The latest financial results showcase KenGen’s adaptability to environmental and market challenges, with the company dispatching 8,384 GWh of electricity, an increase from 8,027 GWh in 2023. This growth occurred despite the volatile weather conditions and inflationary pressures affecting many businesses in Kenya.
Njenga emphasized that the company maintained a stable operating profit of Ksh 9.6 billion through diligent cost management and efficiency improvements. KenGen’s geothermal and hydroelectric facilities were crucial in meeting the country’s peak electricity demand of 2,149 MW during the review period.
“Despite global macroeconomic challenges, including high inflation and foreign exchange fluctuations, we implemented financial discipline and prudent cost management measures,” Njenga noted.
The financial results revealed that KenGen’s revenues rose to Ksh 56.3 billion, an increase of Ksh 2.3 billion from the previous year. The company’s power generation output grew by 4% despite the decommissioning of over 130 MW of fossil fuel-powered plants.
“The shift to green energy is part of our broader strategy to meet rising energy demand while reducing our carbon footprint, in line with the Government of Kenya’s goal of transitioning to 100% green energy by 2030,” said Njenga.
Looking forward, KenGen aims to diversify its revenue through projects like the Green Energy Park at Olkaria, which will provide sustainable operational platforms for industries. The company is also expanding its commercial drilling services for geothermal development across the region.
KenGen’s future strategy, encapsulated in its Good-2-Great (G2G) 2024–2034 Corporate Strategy, focuses on increasing renewable energy capacity by approximately 1,500 MW, enhancing operational efficiency, and leveraging innovative technologies to stay competitive in the evolving energy sector.
Njenga highlighted several major renewable energy projects in the pipeline, including the 42.5 MW Seven Forks solar plant, the rehabilitation of the Olkaria I geothermal power plant, and the redevelopment of the Gogo hydropower station.
“Our strategy goes beyond profit generation. We are deeply committed to environmental stewardship and responsible growth,” said Njenga. “The expansion of our renewable energy portfolio aligns with our mission to support Kenya’s climate goals and drive sustainable development.”
With its strong financial performance and strategic focus on renewable energy, KenGen is poised to play a vital role in shaping Africa’s energy future.
“As we move forward, KenGen’s leadership in renewable energy and our commitment to innovation and sustainability will remain at the core of our operations,” Njenga concluded. “We are not just providing energy; we are helping to create a greener, more sustainable future for Kenya and the region.”
