The light that guides KenGen managing director Peter Njenga comes from the Bible.
Proverbs 18:10: “The name of the Lord is a strong tower: the righteous runneth into it, and is safe.”
Njenja invokes it as he ensures Kenya’s economy is powered for growth.
KenGen accounts for 60 per cent of generated power in the country and is one of the biggest power generators in the region.
Njenga took over the company’s leadership in August 2023.
A staunch Christian and family man, he believes that he is the right steward towards Kenya’s dream to attain 15,000MW of largely green energy by 2032.
Today, KenGen has an installed generation capacity of 1,725MW, of which more than 93 per cent is drawn from green sources.
These are hydro ( 826MW), geothermal ( 754MW) and wind ( 25.5MW). The balance is from thermal.
“I’m proud that some of the plans in our 10-year strategic plan unveiled in 2023 are already in motion,’’ Njenga said in an exclusive interview with the Star.
“There are positives that come with affordable and available clean power. That is what will take our country to the next level.”
Last week, the power generator reported an impressive 79 per cent growth in net earnings to Sh5.3 billion, but it will be re-investing the profit into the business to further grow shareholders’ value.
‘’My joy is creating an environment where everyone is a winner. Cheaper power is a win for the country, while our shareholders reap from better financial results. That is what sustainability means.’’
On Friday, the firm’s share at the Nairobi Securities Exchange (NSE) closed the market at Sh4.51, having more than doubled since Njenga took power. It averaged Sh1.99 in 2023.
For the next two years, the power man is committed to ensuring the company delivers an extra 194MW of power, estimated to cost at least Sh87.6 billion.
Some of the projects in the pipeline include the rehabilitation of Olkaria 1 power plant to increase capacity to 63MW from current 45MW by next year.
The firm is also getting a consultant to guide the construction of 42.5MW solar plant, raise the capacity of Gogo Hydro from current 2MW to 8.6MW as well as target 60MW from the Muhoroni power plant by April 2025.
It is also planning to put in place 100MW of battery energy storage to enhance grid stability.
The Sh8.8 billion project aims to enhance electricity supply during peak demand season.
It is to be funded by the French Development Agency.
“The project will store excess solar energy generated during the day and release it to the national grid during demand-high evening hours, improving grid stability and reducing reliance on fossil power,” Njenga said.
Set to be installed at the Seven Folk site in Eastern Kenya, the initiative aligns with Kenya’s recent mandate requiring all solar and wind power projects to integrate battery energy storage system.
Apart from the core business of power generation, the KenGen MD said the firm is undertaking a diversification strategy by helping the neighbouring countries of Zambia, Eswatini, Djibouti and Ethiopia in geothermal exploration.
He said the diversification strategy will add an extra $2 billion (close to Sh260 billion) to the company in the next 10 years, which will boost its economic contribution to the government.
He said the firm has established a green energy park in Olkaria, where investors will tap 100 per cent of their energy needs to power their industries.
Late last year, the listed power generator was appointed to the Multi Sectoral Technical Committee, a high-level team tasked with shaping Kenya’s carbon market framework.
The prestigious three-year appointment positions KenGen at the forefront of advancing Africa’s carbon trading future and unlocking new opportunities in the fight against climate change.
Njenga hails the appointment as a timely recognition of the company’s contributions to sustainable development.
“We are geared towards assuring investors of steady and affordable power supply, ensure competitive power tariffs and lower the cost of electricity for consumers.”
Although grateful for the far he has come with the company, Njenga wishes that KenGen finds more virgin grounds to extend its green energy generation. He cites geothermal power, now that the Olkaria site is almost depleted.
He acknowledged his team at KenGen for the great dedication to ensure the country is powered and hoped they attain desired value for shareholders.
“I cannot forget to mention the amazing work done by my able team and stakeholders from funding partners, the support from the ministry, regulator, power transmitter (Ketraco), Geothermal Development Company and of course, Kenya Power.”
Ketraco stands for the Kenya Electricity Transmission Company. Njenga spends most of his time with family and serving God.
