Kenya Electricity and Generating Company (KenGen) has reported
a Sh6.8 billion net profit in the year ended June 30, 2024, raking up a Sh1.8
billion gain from Sh5 billion.
The power firm also posted the financial income of the Nairobi Stock Exchange (NSE)-listed generator’s finance income skyrocketed by 149 per cent to Sh4.2 billion shillings in 2024, nearly tripling the Sh1.7 billion recorded in 2023.
This sharp increase bolstered the company’s overall profit jump, underscoring its strategic financial strategy amid challenging economic conditions.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers.” KenGen CEO Peter Njenga said.
The power firm led the other companies in the Kenya’s green energy shift terming its year’s financial results as key in underscoring KenGen’s ability to adapt to environmental and market challenges.
“The shift to green energy is part of our broader push to meet the rising energy demand while reducing our carbon footprint, aligning with the Government of Kenya’s ambitious renewable energy goals of transitioning to 100 per cent green energy by the year 2030,” Njenga said.
The company reported dispatching 8,384GWh (Gigawatt[1]hours) of electricity during the year, up from 8,027GWh in 2023 despite inconsistent weather conditions and inflationary pressures that have affected many businesses in Kenya.
According to Njenga, KenGen achieved a steady operating profit of Sh9.6 billion by emphasizing efficiency and effective cost management. The company’s geothermal and hydroelectric stations played a key role in satisfying the peak electricity demand of 2,149MW for the country.
“Despite the harsh global macroeconomic challenges, characterised by high inflation and foreign exchange fluctuations, we were able to instil financial discipline and prudent cost management measures in our operations, which has seen us flatten the operational costs,” Njenga said.
Kenya has long been regarded as a major player in renewable energy in the African continent, with 90 per cent of its power coming from renewable sources.
KenGen, producing around 70 per cent of Kenya’s electricity has been instrumental in this shift through extensive geothermal projects. The power firm plans to expand its revenue streams with the development of a Green Energy Park at Olkaria, a move that will provide industries with a platform to operate sustainably.
