News and Events

Nairobi, April 22nd, 2021: Kenya Electricity Generating Company PLC (KenGen) will pay its shareholders Kshs.1.98 Billion in dividends.

This follows today’s approval by shareholders of the Board’s recommendation for a first and final dividend payment of Kshs 0.30 per ordinary share of Kshs 2.50.

The dividend payout for the year ended June 2020 is an increase from the Kshs 1.65 billion paid to the shareholders in 2019.

Speaking during the Company’s 68th Annual General Meeting (AGM) which was held virtually owing to the Coronavirus Disease (COVID-19), KenGen Managing Director & CEO, Mrs. Rebecca Miano, said the Company’s capacity expansion and diversification agenda had contributed to the results and growth achieved during the year the year. “The progress we have been able to make as an institution has mainly been driven by deliberate strategic decisions taking into account the prevailing operating environment, business sustainability, trends and market needs,” she said.

She pointed out that under the Corporate strategy, KenGen had been able to expand its revenue sources and international footprint. “It is under this strategy that we now have on-going contracts to drill geothermal wells in Ethiopia and Djibouti and also provide geothermal consultancy services in Kenya. We are happy this direction we have taken is paying off and are determined to continue with it so that we can provide more value to you, our shareholders,” said Mrs. Miano.

She also highlighted the achievements attained during the period, adding that the company envisioned to add another 83.3 MW to the national grid by the end of 2021 following the completion of Olkaria 1 Unit 6 geothermal power plant.The Managing Director added that going forward, the company would focus on delivering ongoing projects and pursuing new ones in Kenya and beyond.

During the year ended June 2020, KenGen announced a Kshs.13.9 Billion profit before tax which translated into 18% growth from the previous financial year during which the company announced Kshs 11.6 billion profit before tax.

The company’s profit after tax improved from Ksh.7.88 billion to Kshs.18.4 billion, an increase that the company attributed 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.

In his address, KenGen Board Chairman, General (Rtd.) Samson Mwathethe said the company was pleased to have delivered positive results amidst a challenging business environment.

The company, he added, would continue implementing its Corporate Strategy to ensure sustainable electricity supply in the country, while leveraging on innovation and partnerships for business growth and diversification.

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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.

About KenGen

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.