KenGen posts 35% surge in net earnings

Kenya's leading electricity generating company, KenGen, has reported a significant 35 per cent increase in net earnings, reaching an impressive Ksh6.79 billion, propelled by the surging demand for energy in the country. Peter Njenga, the Managing Director of KenGen, highlighted the firm's financial achievements in an exclusive interview with CNBC Africa. The remarkable growth in profit after tax from Ksh5 billion last year to Ksh6.8 billion this year can be attributed to the robust revenues generated by the company's geothermal and hydroelectric power plants, solidifying its position as a leader in Kenya's renewable energy sector. Despite facing challenges such as high finance costs, which escalated by 2.7 per cent year on year, leading to an expenditure of about Ksh2.8 billion, KenGen remains focused on cost-cutting measures and operational efficiency to enhance its financial performance in the upcoming fiscal year. The company's revenue soared to Ksh56.3 billion, representing a Ksh2.3 billion surge compared to the previous year. Remarkably, there was a staggering 149 per cent growth in finance income, tripling to Ksh4.2 billion from Ksh1.7 billion in 2023. This financial success amidst global economic pressures like inflation and currency fluctuations underscores KenGen's adeptness at navigating volatile markets through prudent financial management. The steadfast operating profit of Ksh9.6 billion reflects the company's commitment to optimizing operations and controlling costs, ensuring financial resilience and value delivery to shareholders both presently and in the future. KenGen's determination to further expand its renewable energy portfolio aligns with Kenya's ambition to achieve 100 per cent green energy by 2030. The company's strategic plan for 2024-2034 focuses on ramping up renewable energy capacity by approximately 1,500 megawatts, enhancing operational efficiencies, and harnessing advanced technologies. Diversifying revenue streams, such as through the Green Energy Park at Olkaria, will not only boost income but also support sustainable industrial operations, contributing to green growth. KenGen's commitment to environmental stewardship is paramount, with a strong emphasis on responsible growth and lasting value creation. The company's ongoing projects, including the 42.5 megawatt 7 Fox solar plant and the rehabilitation of the Olkaria 1 geothermal power plant, underscore its dedication to meeting green energy targets and combating climate change. Moreover, the redevelopment of the Gogo hydropower station to add 8.6 megawatts signifies KenGen's adherence to timely and budget-conscious delivery of renewable energy initiatives. As KenGen forges ahead, its mission extends beyond powering Kenya's energy needs to driving socio-economic development and fostering a sustainable future for the nation and the region.