KenGen’s Revenue Grows 11% to Sh27.5B

Revenue for Kenya Electricity Generating Company PLC (KenGen) increased by 11% from the beginning of the year to the end of December 2022.

The income of the electricity generator increased from Sh24.7 billion in the six months leading up to December 2021 to Sh27.5 billion in the same time last year, an increase of 11 percent.

The newly-commissioned 86 MW Olkaria I’s increased geothermal production capacity, which raised power unit sales from 4,006 GWh in 2021 to 4,200 GWh in the period ending in December 2022, was credited with the improved performance.

The half-year results follow one of the longest droughts in recent times, which has reduced the area’s ability to generate electricity through hydropower due to the low water level.

“In previous years, we would be having serious scenarios of power rationing affecting the entire country at a time like now when the rains have failed,” said KenGen Ag. Managing Director and CEO Abraham Serem.

Serem pointed out that the company’s investment in renewable energy sources, particularly geothermal electricity, is highlighted by the revenue rise.

“Thanks to our geothermal-led strategy and investments in geothermal development over the years, we have been able to save the country from scenarios of power rationing as was the case in earlier years and we are confident that this growth will remain as we continue to work on stabilizing the national grid,” said Mr. Serem.

The 40-year-old Olkaria I geothermal power plant will begin refurbishment as planned to increase its capacity to 63 MW. The company is NSE-listed.

It involves increasing the combined 300 MW capacity of Olkaria I, Additional Units 4 and 5, and Olkaria IV to 340 MW.

“We remain focused on our strategic initiatives, which include diversification of our revenue streams, innovation, and cost optimization. Today, our electricity is the most competitively priced and this has continued to cushion Kenyans from rising power prices.”