Nairobi, Friday, February 26, 2021: Kenya Electricity Generating Company PLC (KenGen) has announced a 9% profit increase in its half-year unaudited financial results for the period ended December 31, 2020. The profit before tax grew from Ksh.6.2 billion to Ksh.6.8 billion.
Revenue from geothermal operations continued to show a growth trajectory, recording an increase of 14% supported by additional generation capacity from Olkaria V and revenue diversification from an on-going geothermal drilling project in Ethiopia.
“Net revenue increased by 9% from Ksh.18.9 billion in December 2019 to Ksh.20.5 billion for the period under review, primarily because of Olkaria V and revenue diversification from the Ethiopia drilling project,” KenGen Managing Director and CEO, Rebecca Miano said while announcing the results.
KenGen’s energy sales increased by 5% following growth in national electricity consumption which saw peak demand reach 1,976MW in December 2020 compared to 1,882MW during a similar period in 2019.
The NSE-listed company has adopted a diversification strategy which has seen it leverage its expertise in geothermal energy by offering commercial drilling services, geothermal development consulting, and other energy-related services locally and in the Horn of Africa.
Mrs. Miano said the company aims to deliver a new geothermal power plant, Olkaria I Additional Unit 6 later this year which will add about 83MW to the national grid.
KenGen PLC is the leading electricity generation company in Eastern Africa, generating more than 72% of electricity consumed in Kenya. The company’s primary business is to provide affordable and reliable electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.
NAIROBI, Thursday February 11th, 2021 : Kenya Electricity Generating Company (KenGen) PLC has won yet another international contract to drill three geothermal wells in Djibouti.
The company today signed a Ksh 709,822, 630 (USD 6,452,933) contract with Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG).
The ceremony, in Galla Le Koma, Djibouti, was attended by Kenya’s Energy Cabinet Secretary, Hon. Charles Keter, and KenGen Managing Director & CEO, Mrs. Rebecca Miano.
Speaking during the event, Hon. Keter pointed out that African nations shared the common aspiration of delivering electricity to their people, which, he said, provided an opportunity to work together to meet the continent’s energy needs. “The biggest challenge has remained access (to electricity) in remote areas, and in Sub-Saharan Africa with 573 million people not having access to this important commodity. Although energy access policies have continued to bear fruit, with 2019 data showing tremendous progress, we have seen the Coronavirus pandemic reverse the gains. We can only remain optimistic that things will change in 2021,” the CS said.
While highlighting Kenya’s progress in achieving universal electricity access, he indicated that the country’s National Electrification Strategy (KNES) launched in 2018 had played an important role in helping the nation achieve electrification in an economically viable manner.
In 2019, Kenya’s power installed capacity was 2,818.9 MW. Currently, the country’s energy mix comprises geothermal (29%), hydro (29%), wind (12%), solar and others (2%) and thermal (28%).
The CS said the country had made remarkable progress in increasing access to electric power as a result of deliberate government efforts and private sector investment.
Kenya’s journey towards harnessing geothermal energy, he added, started in the 1950s and assured Djibouti of support in enabling it to realise its geothermal potential. “To date, we have drilled more than 300 wells within the Olkaria field, which is the bedrock of Kenya’s geothermal energy production. As a country, we have a geothermal energy potential of 10,000MW along the Rift Valley with the resource being harnessed in 23 sites,” he said.
For her part, Mrs. Miano expressed optimism that the three wells will be productive and enhance Djibouti’s efforts towards growing its energy production.
KenGen, which has embarked on a diversification strategy, leverages its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other energy-related services across Africa. Mrs. Miano said the company’s strategic plan is to harness opportunities geared towards driving growth beyond Kenya. “It is therefore our desire that in the next couple of years, we shall have considerable presence in countries within the Continent. It is also worth noting that we are not only keen on increasing our presence in Africa, but also enhancing energy capacities across the region,” she said.
This is the third geothermal drilling contract that KenGen has won in Africa. In October 2019, the company secured a Ksh 5.8 billion contract to drill 12 geothermal wells in Ethiopia. The contract with an independent power producer includes installing a water supply system and equipment.
In February 2019, KenGen won yet another contract for consultancy services and drilling geothermal wells. The contract is worth USD 76,801,344 (about Kshs 7.6 billion). It has also developed partnerships with countries such as Ethiopia and Rwanda in renewable energy development.
KenGen has invested in experts with considerable experience in geothermal exploration and drilling and will build the capacities of teams from Djibouti who will be working on the project.
Kenya is Africa’s number one geothermal energy producer and among the top 10 in the world. KenGen has a geothermal installed capacity of 706 MW and is the leading geothermal power producer on the continent.
KenGen is the leading electricity generation company in Eastern Africa with a market share of about 70 per cent. The company’s primary business is to provide affordable and dependable electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.
Nairobi, Tuesday February 9th, 2021: Leading power producer, Kenya Electricity Generating Company PLC (KenGen) has today paid the National Government Ksh 1,153,856,022 in dividends for the financial year ended June 2019.
The National Treasury & Planning Cabinet Secretary, Amb. Ukur Yatani, received the cheque from KenGen Board Chairman, General (Rtd.) Samson Mwathethe. Also present during the cheque presentation ceremony held at the National Treasury was KenGen Managing Director & CEO, Mrs. Rebecca Miano.
The National Treasury CS lauded KenGen’s positive financial performance adding that as Government, they were proud to be associated with the company. The Government owns 70% stake at KenGen while 30% is owned by private shareholders.
CS Yatani noted that as the country’s leading energy producer, KenGen was a major player in the Government’s efforts towards the country’s growth and development. “ Energy is critical for the country’s growth and development. We take cognizance of the important role played by KenGen in growing the economy,” the CS said.
During the event, Gen. Mwathethe said: “We are indeed privileged and honoured to pay the Government Ksh 1,153,856,022 in dividend at a time when businesses are facing enormous challenges occasioned by the Coronavirus Disease (COVID-19) pandemic.”
He expressed gratitude to the Government for consistent support over the years, saying it had contributed to KenGen’s growth and positive performance.
For the year ended June 2020, KenGen announced a Ksh 13.9 billion profit before tax, translating into 8.3% growth in profit from the previous financial year.
The Board has recommended a first and final dividend for the year of Ksh 0.30 per ordinary share of Ksh 2.50, which will be paid to shareholders once ratified in the next annual general meeting (AGM), Gen. Mwathethe said.
Speaking at the event, the company’s Mrs. Miano said KenGen’s diversification strategy was bearing fruit as the organization had been able to incorporate new business lines in its revenue streams including consultancy services.
The company is currently offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.
She also expressed optimism in the company’s ability to navigate the COVID-19 Pandemic which led to widespread socio-economic challenges.
Nairobi, Wednesday January 27th, 2021: The Leading energy producer, KenGen, has announced a Ksh.13.9 Billion profit before tax for the Financial year ended June 2020. This translates to 8.3% growth in profit from the previous financial year where the company announced Ksh 11.6 Billion profit before tax.
The increase was mainly attributed to the additional revenue contribution by the 165MW Olkaria V geothermal power plant and proceeds from the ongoing geothermal drilling project in Ethiopia.
“We reported a 13.4% growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14%,” the Managing Director & CEO, Mrs. Rebecca Miano, said.
Consequently, the Board has recommended a first and final dividend for the year of Ksh.0.30 per ordinary share of Ksh.2.50. This will be presented during the company’s upcoming Annual General Meeting (AGM) for approval. Recently, the company made a dividend payout of Kshs 1.65 billion to its shareholders.
At the same time, KenGen’s profit after tax improved from Ksh.7.88 billion to Ksh.18.4 billion, an increase that the company attributes to a Kshs 8.1 billion reduction in corporate tax rate from 30% to 25% as per the Government’s relief measures to support companies navigate through the COVID-19 crisis. “We appreciate the support provided by the Government during this unprecedented time to enable us to continue providing electricity as an essential service,” said KenGen’s Managing Director and CEO, Mrs. Rebecca Miano.
She further indicated that in as much as the country’s hydrological conditions were favorable with dams recording full capacity, hydropower production declined by 2% following constrained demand associated with the effects of COVID-19 pandemic on electricity consumption.
Mrs. Miano stated that in response to the pandemic, KenGen continued to implement business continuity measures to minimize the impact of the pandemic on operations to ensure continued generation of electricity.
During the year ended June 2020, KenGen’s operating expenses were at Ksh.14 billion compared to Ksh.13.9 billion in the previous year. “We continue to optimize operating costs by leveraging on digital transformation,” Mrs. Miano added.
Mrs. Miano said the company would also continue implementing its Corporate Strategy to ensure sustainable power growth in the country, while leveraging on innovation and partnerships for continued business growth and diversification.
“In the year ahead, we aim to deliver Olkaria I Unit 6 geothermal power plant, which will add 83.3MW to the national grid, and continue with our diversification strategy focusing on consultancies, operations and maintenance services, training, and the operationalization of materials testing laboratory and electronic instruments calibration center,” the CEO said.
Nairobi, Tuesday November 24th ,2020: Kenya Electricity Generating Company PLC (KenGen) has unveiled an elaborate renewable energy project pipeline focused on supporting the Government’s economic growth agenda.
The company’s focus in the next 12 months, according to the Managing Director & CEO, Mrs. Rebecca Miano, is to deliver the Olkaria I Unit 6 geothermal power plant which will add 83.3MW to the national grid. “KenGen is also continuing with its geothermal exploration program in Olkaria. To date, we have drilled more than 310 wells to support our geothermal-led strategy,” she added.
Members of the Fourth Estate
- Welcome to KenGen’s inaugural Energy Café and thank you all for finding time to join us. It is my pleasure to meet and host you virtually, this morning.
- My greatest wish would have been to meet you physically but due the COVID-19 pandemic, we chose this mode of holding this meeting.
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