Nairobi, Wednesday, March 1, 2023, Kenya Electricity Generating Company PLC (KenGen) has reported a growth in total revenue of 11% to Ksh.27.5 billion for the six months ending December 31, 2022, from Ksh.24.7 billion in 2021.
The growth in revenue is attributed to higher energy sales due to increased geothermal production capacity, with the recently commissioned 86MW Olkaria I Additional Unit 6 geothermal power plant leading to growth in electricity unit sales from 4,006GWhs in 2021 to 4,200GWhs in the period ending December 2022.
The half-year results come against a prolonged drought which is one of the longest in recent history and KenGen says it has affected its hydro generation capacity due to the low water levels resulting from poor rains across successive seasons.
“In previous years, we would be having serious scenarios of power rationing affecting the entire country at a time like now when the rains have failed,” said KenGen Ag. Managing Director and CEO, Abraham Serem.
Mr. Serem however expressed confidence and satisfaction with the performance of the company during the period under review saying the company’s fundamentals were strong enough to support business growth into the future. He noted that the growth in revenue was a testament to the company's investment in renewable energy sources, particularly in geothermal power.
“Thanks to our geothermal-led strategy and investments in geothermal development over the years, we have been able to save the country from scenarios of power rationing as was the case in earlier years and we are confident that this growth will remain as we continue to work on stabilizing the national grid,” said Mr. Serem.
The NSE-listed company is on schedule to commence redevelopment of the forty-year-old 45MW Olkaria I geothermal power plant to boost its capacity to 63MW. This growth trajectory also includes upgrading of Olkaria I Additional Units 4 & 5 and Olkaria IV from the current combined 300MW to 340MW.
"We remain focused on our strategic initiatives, which include diversification of our revenue streams, innovation, and cost optimization. Today, our electricity is the most competitively priced and this has continued to cushion Kenyans from rising power prices,” said Mr. Serem adding, “We are confident that we will continue to deliver value to our shareholders and Kenyans going forward."
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Background information
About KenGen
Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders. Today, KenGen PLC has an installed generation capacity of 1,904MW, of which over 86% is drawn from green sources namely: Hydro (826MW), Geothermal (799MW), Thermal (253MW), and Wind (25.5MW).
Press contacts.
Frank D. Ochieng, Tel: +254 0721816896
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Nairobi, Wednesday, November 30, 2022: East Africa’s leading energy producer, Kenya Electricity Generating Company PLC (KenGen) has posted a Ksh.4.7 billion profit after tax for the period ending June 30, 2022, more than double the Ksh.1.8 billion posted by the company over the same period last year.
The increase representing a 157% year-on-year rise, is attributable to business growth at a time when the NSE-listed company commissioned 86MW Olkaria I Unit 6 earning a tax expense reduction.
During the same period, revenue grew by 7.5% from Ksh.45.7 billion in 2021 to Ksh.49.2 billion, as the company continued to benefit from its investments in geothermal which ensured stable supply despite low generation from hydropower plants due to poor hydrology in most parts of the year.
Over the period ending June 30, 2022, KenGen generated more than 70% of the country’s renewable energy. This came from the company’s total fleet of hydro, geothermal, wind, and thermal, with a combined capacity of 1,904MW which delivered 7,918kWh during the year.
The KenGen board has subsequently recommended a first and final dividend of KShs 0.20 per ordinary share, amounting to a total dividend payout of KShs 1.3 billion for the year.
Commenting on the results, KenGen Acting Managing Director and CEO, Abraham Serem said: “KenGen has strong business fundamentals, posting stable results backed by its growth, innovation, and expansion strategy. We are pleased to report growth in profit after tax for the year ended June 30, 2022, despite prolonged drought which has affected hydropower generation during the period under review. We look forward to a promising year ahead buoyed by expected increased economic activities.
Mr. Serem went on to state: “From an innovation perspective, we are particularly keen to explore opportunities in the E-mobility space, which we recently delved into by unveiling four electric vehicles which we will use to collect data over the medium term with the view of informing future investment decisions on the same.”
KenGen will continue supporting geothermal power development in the region as well as exploring new business opportunities that are consistent with its renewable energy focus. For 2022, the company looks to kick off the redevelopment of a forty-year-old 45MW Olkaria I geothermal power plant to give it a new lease of life and boost its capacity to more than 50MW as well as the uprating of Olkaria I Additional Units 4 & 5 and Olkaria IV. This project seeks to grow the capacity of the two geothermal power stations from the current 280MW to 320MW.
Ends.
Notes to the Editor
About KenGen
Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.
Today, KenGen PLC has an installed generation capacity of 1,904MW, of which over 86% is drawn from green sources namely: Hydro (826MW), Geothermal (799MW), Thermal (253MW), and Wind (25.5MW).
For media queries please contact:
Frank D. Ochieng,
Tel: 0721816896
This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.
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