• Kenya Electricity Generating Company PLC (KenGen) recorded growth in net profit for the financial year ended June 30, 2024
• KenGen recorded a 35% growth in profit after tax, from KSh5 billion reported the previous year to KSh6.8 billion.
• The power producer attributed the profit growth to revenue growth supported by increased green energy production.

Kenya Electricity Generating Company PLC (KenGen) recorded a net profit of KSh6.8 billion for the financial year ended June 30, 2024.

According to the annual report and financial statements, KenGen recorded a 35% increase in profit after tax from the KSh5 billion reported the previous year.

How KenGen Increased Profits

KenGen Managing Director and CEO Eng. Peter Njenga attributed the growth to strong revenue growth from its geothermal and hydropower plants.

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“This impressive growth not only strengthens our financial position, but also signals higher returns for shareholders now and in the long term, while strengthening our capacity to invest in critical renewable energy projects providing more affordable and reliable electricity to our consumers,” Eng.Njenga said.

THE Nairobi Revenues for producers listed on the Securities Exchange (NSE) soared 149% to KSh4.2 billion in 2024, almost triple the KSh1.7 billion recorded in 2023.

KenGen Power Distribution Capability

The company said it shipped 8,384 GWh (Gigawatt hours) of electricity during the year, up from 8,027 GWh in 2023.

Eng. Njenga said the company maintained a stable operating profit of KSh9.6 billion by focusing on cost management and improving efficiency.

KenGen’s power plants, particularly its geothermal and hydroelectric facilities, played a vital role in meeting the country’s peak electricity demand of 2,149 MW during the period under review.

“Despite difficult global macroeconomic challenges, characterized by high inflation and exchange rate fluctuations, we have successfully implemented financial discipline and prudent cost management measures in our operations, enabling us to stabilize costs operational,” he said.

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KenGen turnover in 2023/24

The company’s revenue increased to KSh56.3 billion, a gain of KSh2.3 billion from the previous year.

Its electricity production increased by 4% despite the decommissioning of more than 130 MW of fossil fuel plants in Kipevu and Muhoroni during the year.

“The shift to green energy is part of our broader effort to meet growing energy demand while reducing our carbon footprint, in line with the Government of Kenya’s ambitious renewable energy targets to shift to 100% green energy by 2030,” said the engineer. Njenga.

The CEO went on to say that the company’s performance reflects its strategy focus on the development of renewable energies capacity while maintaining operational efficiency.

Kenya has long been considered a leader in renewable energy on the African continent, with up to 90% of its electricity generated from renewable sources.

KenGen, which produces around 70% of the electricity consumed in Kenya, has played a key role in this transition, particularly through its geothermal projects.

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KenGen said it plans to focus on revenue diversification through projects such as the creation of a green energy park in Olkaria.

The company also provides commercial drilling services for geothermal development throughout the region, a move that is expected to further strengthen its financial performance.

KenGen’s future outlook is firmly anchored in its recently launched Good-2-Great (G2G) 2024-2034 corporate strategy.

The strategy focuses on increasing renewable energy capacity by approximately 1,500 MW, improving operational efficiencies and leveraging cutting-edge technologies to stay ahead in a rapidly changing energy sector. rapid evolution.

“We have several major renewable energy projects in our pipeline, the 42.5 MW Seven Forks solar plant, the rehabilitation of the Olkaria I geothermal plant to give us 63 MW and the redevelopment of the Gogo hydroelectric plant aiming for a total of 8.6 MW,” the engineer said. Njenga.

He added that the strategy goes beyond generating profits and extends to environmental management and responsible growth.

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Kenya Power Profit

In the meantime, Kenyan energy and Lighting Company (KPL) recorded a profit after tax of KSh30.08 billion for the financial year ended June 30, 2024.

The KPLC revenue jumped 21% to KSh231.1 billiondriven by increased demand and a more affordable rate introduced in April 2023.

The strengthening of the Kenyan shilling helped reduce financial costs, with foreign exchange gains of KSh7.88 billion.

Edited by Otukho Jackson, multimedia journalist and editor at TUKO.co.ke

Source: TUKO.co.ke