NAIROBI, Tuesday, October 29, 2024: Kenya Electricity Generating Company PLC (KenGen) has reported a 35% surge in profit after tax for the fiscal year ending June 30, 2024, climbing to Ksh.6.8 billion up from Ksh.5 billion, driven by a strong growth in revenues from its geothermal and hydroelectric power plants.

At the same time, the NSE-listed generator’s finance income skyrocketed by 149% to Ksh.4.2 billion shillings in 2024, nearly tripling the 1.7 billion shillings recorded in 2023. This sharp increase bolstered the company’s overall profit jump underscoring its strategic financial management amid a volatile economic landscape.

“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” said Eng. Peter Njenga, KenGen’s Managing Director and CEO.

This year’s financial results underscore KenGen’s ability to adapt to environmental and market challenges. The company reported dispatching 8,384GWh (Gigawatt- hours) of electricity during the year, up from 8,027GWh in 2023. The increase came despite volatile weather conditions and inflationary pressures that have affected many businesses in Kenya.

Eng. Njenga said the company was able to maintain a stable operating profit of Ksh.9.6 billion by focusing on cost management and efficiency improvements. KenGen’s power plants, particularly its geothermal and hydroelectric facilities, were critical to meeting the country’s peak electricity demand of 2,149MW during the period under review.

“Despite the harsh global macroeconomic challenges, characterized by high inflation and foreign exchange fluctuations, we were able to instill financial discipline and prudent cost management measures in our operations which has seen us flatten the operational costs,” said Eng. Njenga.

The CEO went on to state: “We are beginning to see the results of hard decisions taken on austerity measures implemented in the year and prudent financial management further supported by our ability to generate value from financial investments.”

According to the new financial results, KenGen’s revenues rose to Ksh.56.3 billion, a gain of Ksh.2.3 billion from the previous year. The company’s power generation output grew by 4% despite the decommissioning of over 130MW of fossil fuel- powered plants in Kipevu and Muhoroni in the year.

“The shift to green energy is part of our broader push to meet the rising energy demand while reducing our carbon footprint, aligning with the Government of Kenya’s ambitious renewable energy goals of transitioning to 100% green energy by the year 2030,” said Eng. Njenga.

The CEO went on to state that the company’s performance reflects its strategic focus on scaling up renewable energy capacity while maintaining operational efficiency. “We are committed to leading Kenya’s energy transition and delivering sustainable value to our stakeholders,” Njenga said.

Kenya has long been regarded as a leader in renewable energy on the African continent, with up to 90% of its electricity generated from renewable sources. KenGen, which produces about 70% of the electricity consumed in Kenya, has played a critical role in this transition, particularly through its geothermal projects.

Looking ahead, KenGen says it plans to focus on revenue diversification through projects such as the establishment of a Green Energy Park at Olkaria, which will provide industries with a platform to operate sustainably. The company is also providing commercial drilling services for geothermal development across the region, a move that is expected to further bolster its financial performance.

KenGen’s outlook for the future is firmly anchored in its Good-2-Great (G2G) 2024– 2034 Corporate Strategy, which is designed to propel the company into its next phase of growth. The strategy focuses on increasing renewable energy capacity by about 1,500MW, enhancing operational efficiency, and leveraging cutting-edge technologies to stay ahead in a rapidly evolving energy sector. KenGen is confident that this plan will not only ensure continued success but also support Kenya’s broader socio-economic development goals, particularly through improved energy access and environmental sustainability.

“We have several major renewable energy projects in our pipeline, the 42.5MW Seven Forks solar plant, rehabilitation of Olkaria I geothermal power plant to give us 63MW and redevelopment of Gogo hydropower station targeting a total of 8.6MW,” said Eng. Njenga adding that KenGen was committed to implementing its green projects on time and withing budget.

Eng. Njenga went on to say: “Our strategy goes beyond generating profits. At KenGen, we are deeply committed to environmental stewardship and responsible growth,” said Eng. Njenga. “The expansion of our renewable energy portfolio is aligned with our mission to support Kenya’s climate goals and drive sustainable development. As we continue to invest in green technologies, we aim to contribute meaningfully to the global fight against climate change.”

KenGen’s outlook, bolstered by its financial success and strategic focus on renewable energy, suggests that the company will continue to play a premier role in shaping Africa’s energy future.

“As we move forward, KenGen’s leadership in renewable energy and our ongoing commitment to innovation and sustainability will remain at the core of everything we do. We are not just providing energy; we are helping to shape a greener, more sustainable future for Kenya and the region,” said Eng. Njenga.

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NAIROBI, Thursday, October 17, 2024: Kenya Electricity Generating Company PLC (KenGen) has today unveiled its bold G2G Strategy 2024–2034, a visionary roadmap aimed at spearheading Kenya’s transition to a sustainable and green energy future.

This strategic plan cements KenGen’s position as a trailblazer in renewable energy, with a clear focus on expanding geothermal, wind, and solar investments, advancing operational efficiency, and integrating cutting-edge technology for the good of all Kenyan consumers.

Speaking during the launch event held at the Olkaria Geothermal Spa in Naivasha, Hon. James Opiyo Wandayi, Cabinet Secretary for Energy, commended KenGen’s forward-thinking approach, stating that KenGen’s ambitious goals under the new strategy will include scaling up renewable energy capacity, diversifying its energy portfolio, and contributing to Kenya’s economic transformation through job creation and infrastructure development.

“KenGen’s G2G Strategy sets a clear and actionable path for the future of Kenya’s energy sector. As we pursue the goal of 100% renewable energy, the government will continue to support KenGen’s efforts to deliver clean, reliable, and affordable power to all Kenyans. This strategy is critical in our journey towards a low-carbon economy and will ensure Kenya’s continued leadership in green energy innovation,” said Hon. Wandayi who was the Chief Guest during the launch.

The CS went on to say that the G2G Strategy was built on key pillars that focus on expanding geothermal power capacity, scaling up wind and solar projects, and exploring new technologies like hydrogen energy and energy storage solutions. This diversification he said would not only strengthen Kenya’s energy resilience but also ensure KenGen remains a leader in the global renewable energy landscape.

For his part, KenGen Managing Director and CEO, Eng. Peter Njenga, stated: “This strategic plan represents a historic moment for KenGen and Kenya’s energy sector. Our vision seeks to harness Kenya’s immense renewable energy potential to provide reliable, affordable, and clean power to all Kenyans.”

The NSE listed energy generator CEO, went on to say: “We are committed to being at the forefront of the global energy transition, and the G2G Strategy will accelerate our efforts to achieve carbon neutrality while meeting the growing energy demand in the region.”

KenGen’s Board Chairman, Eng. Frank Konuche, reiterated the company’s focus on driving Kenya’s socio-economic impact through the new strategy.

NAIROBI, Thursday, October 10, 2024: Kenya Electricity Generating Company PLC (KenGen) has assured communities living downstream of the Seven Forks Dams that water flow in the Tana River will remain steady, even as the country faces reduced rains.

At the same time, consumers of electricity in Kenya will continue enjoying the benefits of cheaper Hydroelectric Power (HEP) following KenGen’s deliberate move to implement a robust water management program which will ensure steady generation of HEP even as rains subside.

The NSE-listed energy generator says the strategic management of its large dams in the Eastern Region plays a critical role in regulating water levels, ensuring a consistent flow of the Tana River adding that without these interventions, the river could face severe depletion resulting from reduced rainfalls, affecting communities, agriculture, and wildlife that depend on its waters.

“Kenyans should be happy to know that the hydro generation has remained strong, helping to stabilize the cost of power and the various roles of the Seven Forks Hydroelectric Complex, which, as we have said before, shields communities downstream from flooding during heavy rains by holding the bulk of the water,” said KenGen Managing Director and CEO, Eng. Peter Njenga, adding, “Additionally, as we enter the reduced rains season, those who depend on water from the River should not be worried since we will be able to ensure steady flow of water from our dams.”

Thanks to KenGen’s robust water management program in the Seven Forks Dams, River Tana will continue to receive a steady flow of water as outflows from the five large dams.

As of 6 p.m. on October 8, 2024, water levels across the Seven Forks dams remained high as follows: Masinga Dam which is the largest reservoir recorded 1,055.00 meters above sea level (Masl), Kamburu Dam at 1,001.87 Masl, Gitaru Dam at 922.32 Masl, Kindaruma Dam at 779.75 Masl, and Kiambere Dam at 696.97 Masl.

According to latest reports from KenGen, all the major dams are at full capcity despite notably lo inflows into the system, with only 1.89 cubic meters per second (Cumecs) entering Masinga Dam and 5.37 Cumecs recorded at the Thiba River.

Eng. Njenga reiterated that the company’s strategic management of these reservoirs has prevented severe water shortages in the Tana River and helped cushion Kenyans against erratic water supply during the dry period. Additionally, the CEO noted that KenGen’s diversified energy mix, which includes significant geothermal capacity, has been key in maintaining grid stability and powering the country during this time of reduced hydropower output.

“We are working around the clock to ensure that Kenyans continue to receive a reliable supply of power and that the water resources entrusted to us are managed sustainably,” said Eng. Njenga. “Our hydropower plants, particularly those in the Seven Forks, are doing much more than generating power; they are regulating the flow of the Tana River and ensuring water availability for millions of people. At the same time, our geothermal plants in Olkaria and Eburru are providing steady baseload power, offsetting the low hydropower generation and ensuring grid stability.”

KenGen’s geothermal plants, which are not dependent on rainfall, currently provide a consistent source of power to the national grid, helping to buffer against the effects of erratic weather patterns. Geothermal energy, which now contributes nearly 40% of power consumed by Kenyans, is part of Kenya’s broader strategy to address the impacts of climate change by reducing the country’s reliance on hydroelectric power, which is vulnerable to droughts.

By leveraging geothermal energy, KenGen is not only meeting demand but also supporting Kenya’s climate action goals through clean and renewable energy generation.

Nairobi, Kenya, Thursday, August 22, 2024: Kenyans can rest assured that the benefits of affordable and reliable Hydroelectric Power (HEP) will continue, even as the heavy rains that recently swept across the country begin to subside.

Kenya Electricity Generating Company PLC (KenGen) says its proactive water management program particularly at the Seven Forks dams in Embu and Machakos counties is ensuring uninterrupted power supply from these critical installations.

KenGen’s water management strategy has allowed the company to maintain optimal dam levels, ensuring that hydroelectric power generation continues uninterrupted throughout the year, regardless of weather conditions. This initiative is part of KenGen’s commitment to securing a stable and cost-effective energy supply for the nation.

"As KenGen, we have taken significant steps to manage our water resources efficiently. This means that even in the dry seasons, we can continue to produce clean and affordable hydroelectric power, which remains a vital component of the national grid," said KenGen Managing Director and CEO, Eng. Peter Njenga.

As of this morning, Masinga Dam, the largest in the cascade, recorded a water level of 1,056.35 meters against a maximum level of 1,056.50 meters above sea level, while Kiambere Dam, the last in the cascade, recorded

698.68 meters against a maximum of 700 meters. All five dams in the Seven Forks system are currently operating at optimal levels, injecting clean energy into the national grid.

Eng. Njenga expressed confidence in the company's ability to continue providing reliable energy. "Our water management program is a testament to our commitment to delivering clean and affordable electricity to Kenyans. Despite the change in weather patterns, we have positioned ourselves to ensure that hydropower remains a stable source of energy for Kenyans throughout the year," he said.

At the same time, the NSE-listed energy generator’s CEO, also highlighted the environmental benefits of hydropower in the context of climate action. "HEP is not only a cost-effective source of electricity, but it also plays a crucial role in reducing carbon emissions. By relying on renewable energy sources like hydro, geothermal, wind, and solar, we are contributing significantly to Kenya’s climate goals and the global fight against climate change."

KenGen said that all five dams in the Seven Forks system are currently operating at optimal levels, contributing clean and renewable energy to the national grid. Despite the full dams, KenGen's effective water management has prevented any overflows, safeguarding downstream communities from potential flooding.

"The health of our dams is crucial not only for power generation but also for the safety and well-being of the people living along the Tana River," added Eng. Njenga. "Even during the peak rainy seasons, we were able to control the flow of water downstream, minimizing the effects of flooding and reducing the potential damage to property and loss of life. This is a clear indication of our commitment not only to energy production but also to the safety and well-being of the communities around us."

KenGen remains committed to harnessing Kenya’s natural resources for the benefit of the nation, ensuring

that energy remains affordable, reliable, and sustainable for all.

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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%.