Nairobi, Thursday February 29, 2024: Kenya Electricity Generating Company PLC (KenGen) has announced a commendable half-year performance, marked by a notable 8.4% surge in net revenue, reaching Ksh.24.7 billion for the six months ending December 31, 2023.
The NSE-listed energy generator attributed the positive outcome to favorable hydrology and heightened plant efficiency, setting the stage for sustained growth in Kenya's energy sector.
“The operational environment for the aforementioned period was characterized by heavy rainfall that led to an increase in water levels within our hydro dams thus boosting hydro-generation by a remarkable 7%. This substantial boost in hydro-generation played a key role in mitigating the high fuel costs associated with thermal generation, which saw a commendable dip of 3.5%,” said the Managing Director and CEO, Eng. Peter Njenga.
Overall, electricity units generated demonstrated a modest improvement of 0.3%, reaching 4,211GWhs. KenGen reported that the national electricity demand continued its upward trajectory, peaking at 2,170.56MW on December 19, 2023, underlining the growing significance of KenGen's role in meeting the energy needs of the nation.
Net revenue's robust growth, reflecting the impact of favorable hydrology and enhanced plant efficiency, is mirrored in the 1.8% improvement in profit before tax, which grew from Ksh.4.7 billion in 2022 to Ksh.4.8 billion in 2023.
The company’s operating landscape however witnessed a 16.4% increase in operating expenses, predominantly influenced by higher plant operating and maintenance costs stemming from the global macro-economic pressure.
At the same time, KenGen’s positive momentum was slowed by tax expense which surged by 25.7%, escalating from Ksh.1.48 billion in 2022 to Ksh.1.8 billion in 2023, primarily due to an increase in unrealized foreign exchange losses that are disallowable for tax purposes among others. Consequently, Profit after tax declined by 9.2% from Ksh.3.3 billion in the corresponding period of 2022 to Ksh.2.9 billion in 2023.
KenGen maintains a positive outlook, underscoring the escalating national demand for clean electric energy citing noteworthy projects, including the rehabilitation of the Olkaria I geothermal power plant which KenGen says is well on schedule.
At the same time, KenGen says its Olkaria uprating project which aims to increase the combined capacity of two geothermal power plants from 300MW to 340MW is expected to be complete by December 2026.
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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.
For media queries please contact:
Frank D. Ochieng, Tel:0721816896 Email: 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.
Nairobi, Friday, February 16, 2024: Kenya Electricity Generating Company PLC (KenGen) has announced the successful payout of dividends to its private shareholders. This follows the approval by shareholders at the 71st Annual General Meeting (AGM) held on November 30, 2023.
A total of 190,784 shareholders, constituting 30% of KenGen's shareholder base, have received a substantial net dividend amounting to Ksh.545,219,739.63. This milestone payout is part of the approved Ksh.1.978 million dividend allocation for the fiscal year ending June 30, 2023, marking one of the highest dividends distributed by KenGen since its 2016 Rights Issue.
The NSE-listed company's decision to distribute a first and final dividend payment of Ksh.0.3 per share, totalling Ksh.1.9 billion, reflects the company's commitment to rewarding its shareholders in alignment with its robust financial performance.
The dividend disbursement follows the company's impressive profits after tax, amounting to Ksh.5.2 billion in the last financial year, highlighting KenGen's financial health and stability over the years.
During the AGM, KenGen Board Chairman, Julius Ogamba, attributed the company's success to strong business fundamentals, an innovation-driven culture, and a resilient expansion strategy. Mr. Ogamba emphasized that the company's revenue witnessed a commendable 14% increase, reaching Ksh.53.96 billion, underscoring KenGen's financial robustness.
For his part, KenGen Managing Director and CEO, Eng Peter Njenga, reiterated the company's 2024 priorities, emphasizing a focus on new technologies to enhance electricity generation using existing power plants. Eng. Njenga affirmed KenGen's commitment to meeting the rising demand for clean energy in Kenya through initiatives like power plant rehabilitation and up-rating of existing assets.
“We understand the central catalytic role energy plays in our country’s economic development and to this end, we remain focused on our 2024 and long-term strategic priorities to not only meet the growing energy demand but also offer green energy solutions to Africa,” said Eng. Njenga.
KenGen's strategic move towards diversification in geothermal consultancy and its green energy park in Olkaria further solidifies its position for financial sustainability in the current and future years.
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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.
For media queries please contact:
Frank D. Ochieng, Tel:0721816896 Email: 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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