KenGen Posts 48% Surge in Profits for Financial Year Ended June 30, 2023, Plans to Scale Up Green Energy Capacity

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Mombasa, Friday, October 27, 2023: Kenya Electricity Generating Company PLC (KenGen), has reported a significant 48% growth in profit after tax for the year ended June 30, 2023, surging to Ksh.5.02 billion up from Ksh.3.4 billion in the previous year.

At the same time, the NSE-listed company has reported a steady 14% growth in revenues from Ksh.47.48 billion in 2022 to Ksh.53.96 billion, largely driven by the company’s investments in geothermal energy.

“In a landscape filled with both opportunities and challenges, the KenGen team has demonstrated remarkable resilience. We are proud to announce a remarkable Ksh.5.02 billion representing a 48% growth in our profit after tax,” said the Managing Director and CEO, Eng. Peter Njenga, adding “This achievement reflects the hard work and dedication of our team and our commitment to providing clean, reliable energy to Kenyans,”

Speaking in Mombasa, Eng. Njenga attributed the impressive performance to the enhanced operational efficiency of the company’s geothermal fleet in Olkaria, Naivasha, further bolstered by a positive impact of the newly commissioned Olkaria I Additional Unit 6 geothermal power plant which added 86MW to the grid in July 2022.

“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” said Eng. Njenga.

However, KenGen reported an increase in operating costs which the CEO attributed to rising insurance and impairment costs. This was however matched by growth in revenue resulting in a pre-tax profit of Ksh.8.5 billion, which was a substantial improvement from Ksh.6.2 billion reported in the previous year.

“We are confident that our Good-to-Great Transformation Strategy is on course and will continue to deliver growth over the next decade to ensure a reliable supply of clean and affordable energy to the people of Kenya,” said Eng. Njenga, adding that the company contributed over 66% of Kenya’s electricity consumption in the year.

The NSE-listed company CEO said KenGen had helped cushion Kenyans from the effects of climate change which has seen rainfall levels drop in the country over the past few years.

He said: “Notably, our investments in geothermal energy ensured uninterrupted electricity supply, even in the face of challenges posed by a prolonged drought and reduced hydropower generation.”

Looking ahead, KenGen will be banking on the growth in demand for electricity in Kenya which continues to soar at about 5% annually. In line with the demand and the Least Cost Power Development Plan (LCPDP), the company has announced ambitious plans to augment generation capacity by more than 154MW over the next two years through the rehabilitation and uprating of its existing power plants.

“One of the projects we are looking to deliver soon include the Gogo Hydropower Redevelopment Project in Migori County which was approved by cabinet recently and is set to elevate the dam's electricity capacity from its current 2MW to 8.6MW,” said Eng. Njenga.

KenGen boasts a diverse energy portfolio, including geothermal, hydro, wind, and thermal adding up to 1,904MW of which 86% is drawn from renewable sources.

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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.

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Hon. James Opiyo Wandayi, EGH.

CS Wandayi

The Hon. James Opiyo Wandayi, EGH, MP, is a former Leader of the Minority Party in the National Assembly. He resigned while serving his third consecutive term as the Member of Parliament for Ugunja Constituency, having been elected to Parliament for the first time in 2013. He was nominated His Excellency the President as the Cabinet Secretary for Energy and Petroleum on 23rd July 2024. He was formally sworn in as Cabinet Secretary, Energy and Petroleum on 8th August 2024.

The Hon. Wandayi is a social democrat and firm believer in equity and fairness in the management of private and public affairs. He is a member of the Orange Democratic Movement (ODM), where he has held the position of Secretary for Political Affairs since 2014. He also serves as the Second Deputy Secretary-General of the Azimio la Umoja One Kenya Coalition Party.

The Hon. Wandayi served as the Chairperson of the Public Accounts Committee (PAC) for five years in the 12th Parliament (2017 - 2022). During his tenure, he provided leadership to the premier parliamentary watchdog committee in interrogating use of public funds by the National Government, the Judiciary, Constitutional Commissions and Independent Offices. He played a crucial role in public sector accountability with regard to government financial operations by ensuring value for money for Government Projects, Programs and Service Delivery.

During the same period, the Hon. Wandayi also served as the Secretary-General of the African Organization of Public Accounts Committees (AFROPAC), a Pan-African institution that advocates for accountability and good governance.

In recognition of his outstanding work and contribution to the country, he has been awarded the 1st Class Chief of the Order of the Burning Spear (C.B.S); Moran of the Order of the Golden Heart (M.G.H) and most recently, the Elder of the Order of the Golden Heart (E.G.H).

Prior to joining elective politics, the Hon. Wandayi had acquired extensive experience in strategic and operational management and people leadership within a multinational business environment. Between 1998 and 2012, he held core management positions in the private sector within and outside Kenya – the last being Leaf Business Sustainability Manager, responsible for Uganda and DRC at British American Tobacco. In these roles, he developed and implemented excellent communication and engagement strategies with governments, the media and other stakeholders for successful execution of business plans. He also provided leadership to teams of people of diverse backgrounds and orientation to consistently deliver on key business objectives.

The Hon. Wandayi is an alumnus of the University of Nairobi (UoN) where he graduated with a Bachelor of Science in Agriculture, specializing in Agricultural Economics in 1996. In addition, the Hon. Wandayi holds a Masters in Business Administration (MBA) from Jomo Kenyatta University of Agriculture and Technology (JKUAT) and a Diploma in Business Management from the Kenya Institute of Management (KIM). He has recently obtained a Bachelor of Laws Degree from Daystar University.

Kamau Alex Wachira - Principal Secretary

@_AlexKamauWachira

Alex Kamau Wachira - Principal Secretary

The Principal Secretary joins the State Department for Energy with a wealth of experience from the private sector where he worked variously as an investment banker. His latest assignment was with Faida Investment Bank where he traded and structured Treasury bonds and Corporate bonds at the Nairobi Stock Exchange (NSE). Other assignments include working with Dyer & Blair Investment Bank and Genghis Capital limited in the same capacity.

PS Wachira has served in various leadership’s positions right from his university days. He was a founding member of the Bonds Market Association as well as a member of the Steering Committee of the Kenya Association of Stock Brokers and Investment Bankers (KASIB). His contribution to the Bond’s market saw him being appointed to the Central Depository Project at the Central Bank of Kenya (CBK). In 2021, the project dealt in government securities worth 900 billion, the highest turnover ever in Kenya.

The PS launched his career in the financial sector after participating in the issuance of the Safaricom IPO in 2008 where he interned. He had prior completed a Bsc Degree course from the University of Nairobi. At Campus, he served as the Secretary General NUNSA and Treasurer for the Confederation of Medical Students Association. He is currently pursuing an MA in Leadership at Pan African Christian University.

A strong believer in servant leadership through community engagement and development, in that position, the PS was able to spearhead initiatives such, as free medical camps for Cancer Screening, Tree planting, Youth Mentorship Programmes, and Sports Tournaments among others. Born and bred in Kieni Constituency, Nyeri County, the PS is a family man who’s strict up bringing is instrumental in shaping him into the person he is.