KenGen Profit Up by 157% to Sh4.7B

Electricity producer Kenya Electricity Generating Company (KenGen) grew its net profit by 157 percent to Sh4.7 billion for the full year ending June 2022, on the increased sale of cheaper geothermal.

The firm’s profit after tax grew to Sh4.7 billion in the period, from Sh1.8 billion during the previous period last year.

This comes after the NSE-listed company commissioned 86MW Olkaria I Unit 6 earning a tax expense reduction.

“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,” KenGen Acting Managing Director and CEO Abraham Serem said.

“We look forward to a promising year ahead buoyed by expected increased economic activities.”

During the same period, revenue grew by 7.5 per cent from Sh45.7 billion in 2021, to Sh49.2 billion.

Under the period, KenGen generated more than 70 per cent 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.

“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,” Serem added.

Going forward, the producer said it will support geothermal power development in the region as well as explore new business opportunities commensurate with its renewable energy focus.

For 2022, it will kick off redevelopment of a forty-year-old 45MW Olkaria I geothermal power plant to 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.