The Kenya Electricity Generating Company (KenGen) has reported a 48% growth in profit after tax for the Financial Year (FY) ended June 30, 2023, surging to Ksh5.02 billion up from Ksh3.4 billion in the previous FY.
It also reported a 14% growth in revenue from Ksh47.48 billion in 2022 to Ksh53.96 billion largely spurred by the company’s investment in geothermal energy and enhanced operational efficiency in Olkaria, Naivasha, further driven by the newly commissioned Olkaria I Additional Unit (AU) 6 geothermal power plant which added 86MW to the grid in July 2022.
Speaking in Mombasa, Managing Director and CEO Engineer Peter Njenga noted that the growth reflects their dedication and commitment to providing energy to Kenyans.
He said that the commissioning of Olkaria I AU 6 geothermal power plant pushed up the firm’s geothermal generation by 24%.
“This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” he said.
Njenga said that KenGen reported an increase in operating costs attributed to rising insurance and impairment costs, but it was matched by growth in revenue resulting in a pre-tax profit of Ksh8.5 billion, a substantial improvement from Ksh6.2 billion reported in the previous year.
The CEO noted that they are banking on the growth in demand for electricity in Kenya which continues to soar at about 5% annually.
In line with the demand and the Least Cost Power Development Plan (LCPDP), the company has announced ambitious plans to augment generation capacity by more than 154MW over the next two years through the rehabilitation and uprating of its existing power plants.
He said that one of the projects they are looking to deliver soon is the Gogo Hydropower Redevelopment Project in Migori County which was approved by the Cabinet recently and is set to elevate the dam’s electricity capacity from its current 2MW to 8.6MW.
By Fredrick Odiero
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