Eng Peter Njenga, KenGen Managing Director and CEO
The Kenya Electricity Generating Company (KenGen) PLC has reported a 79% growth in profit after tax for the six months ending 31st December 2024, accentuating the company’s resilience in a shifting energy landscape.
The NSE-listed (KEGN) power producer posted a net profit of Sh5.30 billion, up from Sh2.96 billion in the same period last year, a gain primarily driven by aggressive cost-cutting measures and enhanced operational efficiencies.
At the same time, KenGen achieved a 49.4% increase in operating profit, reaching Sh6.65 billion from Sh4.45 billion in the previous period.
This improvement was fueled by a 13.7% reduction in operating expenses, which fell to Sh7.67 billion from Sh20.47 billion. Revenues, on the other hand, remained stable at Sh27.5 billion.
“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” said Eng. Peter Njenga, the company’s Managing Director and CEO.
“We are optimizing 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 finance income rose to Sh2.45 billion from Sh1.87 billion, augmented by higher returns on cash investments and a more stable Kenyan shilling.
Meanwhile, finance costs dropped to Sh1.13 billion from Sh1.49 billion, reflecting improved capital management and debt optimization. KenGen remains at the forefront of Kenya’s renewable energy transition, supplying 4,291GWh of electricity in the half-year period, up from 4,211GWh in the previous period.
This increase was primarily supported by improved hydrology and the availability of our generation fleet. Looking ahead, KenGen is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term blueprint aimed at bolstering Kenya’s green energy transition.
Between 2025 and 2027, the company plans to add 194.4MW of installed capacity across geothermal, hydro, and solar projects, along with 100MWh of battery energy storage to enhance grid stability.
With a strong balance sheet and a firm commitment to sustainability, KenGen is positioning itself as a key player in Africa’s clean energy future. However, the company’s Board has opted not to declare an interim dividend for the period, prioritising reinvestment and long-term strategic growth to maximize shareholder value.
KenGen’s earnings per share (EPS) surged by 78% to Sh0.80, up from Sh0.45, reinforcing the company’s ability to create shareholder value in a dynamic energy market.
“We are driving the future of energy in Kenya,” said Njenga, adding: “Our commitment to operational
excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable
electricity for years to come.”
