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).
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Kenya Electricity Generating Company PLC (hereinafter “KenGen”), a leading electric power generating company in Kenya, and Toshiba Energy Systems & Solutions Corporation (hereinafter “Toshiba ESS”), a leading supplier of integrated energy solutions, concluded a memorandum of understanding (MOU). The MOU anticipates a partnership of Operation and Maintenance (O&M) services for geothermal power plants in developing countries including East African countries through a combination of KenGen and Toshiba ESS’s know-how and networks. This MoU was signed during TICAD 8 held in Tunisia in August 27 and 28.
KenGen produces about 60% of the electricity installed in the country, with 86% generated from renewable energy, such as hydropower, wind power, and geothermal power. For geothermal power, KenGen has a 799 MW generation installed capacity, including the Olkaria Geothermal Power Plants, Kenya’s largest geothermal power complex. Under this MOU, KenGen will contribute to the development of geothermal power plants in East African countries and become the “The point of expert reference” in Africa.
KenGen Managing Director & CEO, Rebecca Miano said “Geothermal energy provides sustainable power supply. It is a resource we have in abundance in Kenya, an advantage that has enabled us to build a considerable wealth of expertise in its exploration and development. This we have done for more than 50 years.”
Toshiba ESS has delivered 60 geothermal power generation sets with a total capacity of about 3,790 MW all over the world, including Africa. It also supplied 4 sets of 70 MW steam turbines and generators for KenGen’s Olkaria I and IV Geothermal Power Plants.
“I’m delighted to announce this cooperation with KenGen, Toshiba ESS has collaborated in the development of geothermal power generation and human resources in Uganda, Malawi, and other East African countries. Through this collaboration, I’m convinced that we can contribute to supplying clean and safe energy in the regions with KenGen.” said Toshiba ESS Business Development Executive, Toyoaki Fujita.
KenGen Managing Director & CEO, Rebecca Miano (left) and Toshiba ESS Business Development Executive, Mr. Toyoaki Fujita, celebrate the signing of the MoU
There is an ongoing survey to identify geothermal resources in the Great Rift Valley, a tectonic plate boundary running from north to south with immense geothermal potential. Both companies are delighted to cooperate in this opportunity, and plan further business expansion.
About KenGen
Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in 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 renewable sources namely: Hydro (826MW), Geothermal (799MW), Thermal (253MW), and Wind (26MW).
About Toshiba Energy Systems & Solutions Corporation
Toshiba Energy Systems & Solutions Corporation is a leading supplier of integrated energy solutions. With its long experience and expertise in a wide range of power generating and transmitting systems and energy management technology, the company delivers innovative, reliable, and efficient energy solutions across the globe. Split off from Toshiba Corporation (TOKYO: 6502) in October 2017.
https://www.toshiba-energy.com/en/index.htm
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