Kenya Electricity Generating Company PLC (KenGen) has reported a 35% surge in profit after tax for the fiscal year ending June 30, 2024, climbing to Ksh.6.8 billion from Ksh.5 billion. This increase was driven by strong growth in revenues from its geothermal and hydroelectric power plants.
At the same time, the NSE-listed generator’s finance income skyrocketed by 149% to Ksh.4.2 billion shillings in 2024, nearly tripling the 1.7 billion shillings recorded in 2023. This sharp increase bolstered the company’s overall profit jump underscoring its strategic financial management amid a volatile economic landscape.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” said Eng. Peter Njenga, KenGen’s Managing Director and CEO.
This year’s financial results underscore KenGen’s ability to adapt to environmental and market challenges. The company reported dispatching 8,384GWh (Gigawatt-hours) of electricity during the year, up from 8,027GWh in 2023. The increase came despite volatile weather conditions and inflationary pressures that have affected many businesses in Kenya.
Eng. Njenga said the company maintained a stable operating profit of Ksh.9.6 billion by focusing on cost management and efficiency improvements. KenGen’s power plants, particularly its geothermal and hydroelectric facilities, were critical to meeting the country’s peak electricity demand of 2,149MW during the period under review.
“Despite the harsh global macroeconomic challenges, characterized by high inflation and foreign exchange fluctuations, we were able to instill financial discipline and prudent cost management measures in our operations which has seen us flatten the operational costs,” said Eng. Njenga.
The CEO went on to state: “We are beginning to see the results of hard decisions taken on austerity measures implemented in the year and prudent financial management further supported by our ability to generate value from financial investments.”
How KenGen’s revenew rose
According to the new financial results, KenGen’s revenues rose to Ksh.56.3 billion, a gain of Ksh.2.3 billion from the previous year. The company’s power generation output grew by 4% despite the decommissioning of over 130MW of fossil fuel-powered plants in Kipevu and Muhoroni in the year.
“The shift to green energy is part of our broader push to meet the rising energy demand while reducing our carbon footprint, aligning with the Government of Kenya’s ambitious renewable energy goals of transitioning to 100% green energy by the year 2030,” said Eng. Njenga.
The CEO went on to state that the company’s performance reflects its strategic focus on scaling up renewable energy capacity while maintaining operational efficiency.
“We are committed to leading Kenya’s energy transition and delivering sustainable value to our stakeholders,” Njenga said.
Kenya has long been regarded as a leader in renewable energy on the African continent, with up to 90% of its electricity generated from renewable sources.
KenGen, which produces about 70% of the electricity consumed in Kenya, has played a critical role in this transition, particularly through its geothermal projects.
