KenGen’s net profit in the six months to December 31st, 2015 rose to Ksh5.67 billion on increased earnings from sale of power and other sources, it announced on Friday. The Kenya Electricity Generating company’s earnings after taxation were 15.01% higher than the Ksh4.93 billion realised in the June to December period of 2014.
Its total revenues increased 52.05% to Ksh18.52 billion from Ksh12.18 a year earlier. Income from sale of electricity climbed to Ksh14.76 billion, a 26.59 per cent rise over Ksh11.66 billion in the six-month period to December 2014.
The biggest growth was recorded in other income streams that shot up to Sh3.48 billion from Sh351.47 million previously. The NSE-listed power producer is 70% state-owned plans to start selling electricity directly to large companies near its generation plants to further boost revenues.
“We are exploring different ways to generate more revenue. One is by selling power directly to companies located near power plants,” said Managing Director and CEO Albert Mugo.
Mr Mugo told shareholders at an annual general meeting last October that this is because a provision in the new bill allows power producers to sell directly to customers.
Operating costs for the half-year period rose to Ksh8.66 billion, a growth of 23.89% from Ksh6.99 billion the year before.
