KenGen Posts 48% Surge in Profits for Financial Year Ended June 30, 2023, Plans to Scale Up Green Energy Capacity

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Mombasa, Friday, October 27, 2023: Kenya Electricity Generating Company PLC (KenGen), has reported a significant 48% growth in profit after tax for the year ended June 30, 2023, surging to Ksh.5.02 billion up from Ksh.3.4 billion in the previous year.

At the same time, the NSE-listed company has reported a steady 14% growth in revenues from Ksh.47.48 billion in 2022 to Ksh.53.96 billion, largely driven by the company’s investments in geothermal energy.

“In a landscape filled with both opportunities and challenges, the KenGen team has demonstrated remarkable resilience. We are proud to announce a remarkable Ksh.5.02 billion representing a 48% growth in our profit after tax,” said the Managing Director and CEO, Eng. Peter Njenga, adding “This achievement reflects the hard work and dedication of our team and our commitment to providing clean, reliable energy to Kenyans,”

Speaking in Mombasa, Eng. Njenga attributed the impressive performance 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 I Additional Unit 6 geothermal power plant which added 86MW to the grid in July 2022.

“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” said Eng. Njenga.

However, KenGen reported an increase in operating costs which the CEO attributed to rising insurance and impairment costs. This was however matched by growth in revenue resulting in a pre-tax profit of Ksh.8.5 billion, which was a substantial improvement from Ksh.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,” said Eng. Njenga, adding that the company contributed over 66% of Kenya’s electricity consumption in the year.

The NSE-listed company CEO said KenGen had helped cushion Kenyans from the effects of climate change which has seen rainfall levels drop in the country over the past few years.

He said: “Notably, our investments in geothermal energy ensured uninterrupted electricity supply, even in the face of challenges posed by a prolonged drought and reduced hydropower generation.”

Looking ahead, KenGen will be banking on the growth in demand for electricity in Kenya which continues to soar at about 5% annually. 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 154MW 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 include 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 2MW to 8.6MW,” said Eng. Njenga.

KenGen boasts a diverse energy portfolio, including geothermal, hydro, wind, and thermal adding up to 1,904MW of which 86% is drawn from renewable sources.

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Note to 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), Wind (25.5MW). The balance is from Thermal.

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KenGen Energy Park

Promoter: Kenya Electricity Generating Company PLC (KenGen)

Private sector participation: O&M; DEVELOPER, INVESTOR, TENANT

Location: Olkaria, Naivasha

KenGen has completed plans to set up an Energy park at its geothermal power generation hub at Olkaria-Naivasha in order to take advantage of the competitively priced geothermal steam and electricity as key economic drivers of production. The park will provide industrial, commercial and recreational facilities and will be developed in two phases, the completion of the first phase planned by 2022. The park is strategically located along regional transport routes with access by road and rail. The park will provide quality and reliable utilities and energy supply (Electricity, high pressure stream and brine at 130 degree Celsius) which will be managed through an appointed developer who will develop infrastructure for a plug and play environment

Seven Forks 40MW Solar Photovoltaic (PV) Project

Promoter: Kenya Electricity Generating Company (KenGen)

Private sector participation: EPC

Location: Embu County

The project entails development of a 40MW solar photovoltaic (PV) pilot plant in seven forks area to utilize abundant solar energy, reduce consumption of fossil fuels, diversify energy sources for electricity generation, and to master solar power generation technology. It will be undertaken on approximately 80 Hectares of land wholly owned by KenGen and free of human settlement. The site has a high solar irradiation of above 2,000kWh/m2.

Raising of Masinga Hydropower Dam

Promoter: Kenya Electricity Generating Company (KenGen)

Private sector participation: EPC

Location: Masinga

The Masinga Hydropower dam is the largest dam on Seven Forks cascade with a storage capacity of 1,560 million cubic meters and installed generation capacity of 40MW. The project entails increasing the reservoir storage capacity to enhance power generation and storage. The feasibility study conducted recommended the option of raising the dam by 1.5 Meters to a full supply level of 1,058 metter above sea level.

Ngong Wind Farm

Within the period of 2009 and 2014, KenGen implemented and commissioned the Ngong I and II wind projects with an installed capacity of 5.1 and 20.4MW respectively.

The Ngong Wind Farm is located on the Ngong Hills, near Ngong town in Kajiado County and is approximately 20 Kilometres from the capital, Nairobi.

The Ngong I plant consists of 6 Vestas V52-850 KW 50 Hz turbines while the Ngong II plant consists of 8 Vestas V52-850 KW 50 Hz turbines and 16 Gamesa turbines G52-850 KW 50HZ turbines. Total generated power of 25.5MW is evacuated via an 11/66 kV line to the Ngong Substation.

Plans are at advanced stage for the development of Ngong Phase 3 wind farm with an 18-month implementation period. Once completed, the project will add 10MW to the national grid. Also planned for development is the Ngong Phase 4 wind farm which will bring on-stream another 40MW at a cost of USD70 million.

Olkaria 1 Units 1, 2 & 3 Rehabilitation Project

The 45MW Olkaria 1 (Units 1, 2 and 3) Geothermal Power Plant is located at the Olkaria geothermal field in the Rift Valley. This was the first geothermal power plant in Africa commissioned in 1980.

Due to the normal wear and tear experienced by the plant over years of operation, KenGen wishes to restore the plant to its former glory and is currently in the process of procuring a Contractor to carry out the rehabilitation works.

Upon completion of the project, the plant will be upgraded from the current 45MW to 50.7MW.