KenGen general
manager, finance
Mary Maalu,
board chairman
Frank Konuche
and managing
director and CEO
Peter Njenga
during the
company’s AGM
on November 28 /HANDOUT
Kenya Electricity Generating Company (KenGen) has recorded major progress in the Sh250 million geothermal development contract with the state-owned Eswatini Electricity Company (EEC), underscoring the firm’s continued commitment to advancing renewable energy across Africa as part of revenue diversification.
The firm won the deal on the back of previous success stories in Djibouti and Ethiopia where it bagged contracts worth Sh709 million and $76 million (Sh10 billion) in 2019 and 2020 respectively.
The geothermal drilling business contributed significantly to the firm’s 35 per cent growth in net earnings for the year ended June 30, 2024, Climbing to Sh6.8 billion from Sh5 billion.
The NSE-listed generator’s finance income skyrocketed by 149 per cent to Sh4.2 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.
The contract, awarded earlier this year, tasks KenGen with conducting comprehensive geoscientific studies to assess geothermal potential in three prospective regions of the Southern African country, Eswatini.
The studies, aimed at establishing the feasibility of developing a geothermal power plant, are now well underway, with completion expected in the next few months.
Commenting on the progress during the NSE-listed company’s 72nd Annual General Meeting (AGM) held on Thursday, KenGen managing director and CEO, Peter Njenga reaffirmed the company’s dedication to advancing renewable energy solutions across Africa.
“Our strategic focus is on expanding our footprint beyond Kenya and leveraging our geothermal expertise to foster sustainable development across the continent,” Njenga said.
He added that the partnership marks another significant step in the firm’s mission to support Africa’s renewable energy ambitions and mitigate the effects of climate change.
”Eswatini has set its sights on harnessing geothermal energy to strengthen its renewable energy capacity and enhance energy security. This aligns with the country’s broader commitment to sustainable development and global efforts to combat climate change by reducing carbon emissions. “I am optimistic that our geoscientific studies will confirm the viability of the country’s geothermal resources, enabling the country to increase its renewable energy portfolio.”
He said that the project also reinforces KenGen’s strategy to diversify revenue streams and ensure financial sustainability through geothermal consultancy and related services.
KenGen board chairman, Frank Konuche described the new partnership as a strategic move by Eswatini to tap into its natural resources while contributing to Africa’s sustainable energy goals.
“For KenGen, the project is a testament to our growing influence in geothermal development across the continent,” said Konuche.
The Eswatini project is one KenGen’s latest geothermal development contracts in Africa, following successful ventures in Djibouti, Ethiopia, and Tanzania. Kenya remains the continent’s leading geothermal energy producer and ranks among the top 10 globally, with an installed geothermal capacity of 754MW.
Kenya has long been regarded as a leader in renewable energy on the African continent, with up to 90 per cent of its electricity generated from renewable sources.
The
firm has played a critical role in this
transition, particularly through its
geothermal projects.