- The Kenya Electricity Generating Company PLC has demonstrated its resilience in a changing energy landscape with a 79 per cent increase in profit after tax for the six months.
- Higher returns on cash investments and a more stable Kenyan shilling helped the company’s finance income rise from KSh 1.87 billion to KSh 2.45 billion.
The Kenya Electricity Generating Company (KenGen) PLC, has demonstrated its resilience in a changing energy landscape with a 79 per cent increase in profit after tax for the six months ended December 31, 2024.
The NSE-listed electricity generator (KEGN) reported a net profit of KSh 5.30 billion, up from KSh 2.96 billion during a similar period in the previous financial year.
In a statement, KenGen attributed the improvement to increased operating efficiencies and aggressive cost-cutting efforts.
“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency. We are optimising our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country,” the company’s managing director and CEO, Peter Njenga, explained.
Also, KenGen’s operating profit increased by 49.4 per cent to KSh 6.65 billion from KSh 4.45 billion in the prior period. A 13.7 per cent decrease in operational expenses, from KSh 20.47 billion to KSh 17.67 billion, drove this result. On the other hand, revenues remained stable at KSh 27.5 billion.
Higher returns on cash investments and a more stable Kenyan shilling helped the company’s finance income rise from KSh 1.87 billion to KSh 2.45 billion. Finance costs, on the other hand, decreased from KSh 1.49 billion to KSh 1.13 billion, indicating better debt optimisation and capital management.
The half-year period saw KenGen’s energy supply increase from 4,211GWh to 4,291GWh. Improved hydrology and the availability of the generating fleet supported this growth.
However, under its G2G 2034 Strategy, a long-term plan designed to support Kenya‘s green energy transition, KenGen is concentrated on growing its portfolio of renewable energy sources.
To improve grid stability, the firm intends to install 194.4MW of capacity between 2025 and 2027, spanning solar, hydro, and geothermal projects and 100MWh of battery energy storage.