FEATURED STORY

KenGen in Ksh11.5bn net profit as power sales surge

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Kenya Electricity Generating Company (KENGEN) has registered a net profit of Ksh11.5 billion for the financial year ended 30th June 2015. This is a 308% profit increase from Ksh2.8 billion in 2014, thanks to higher electricity sales, boosted by increased production of renewable energy.

KenGen Managing Director, Eng. Albert Mugo, electricity generation increased over the year by the addition of new geothermal power plants. “During the year, electricity generation increased as a result of new geothermal plants which became fully operational in the second half of the year,” he said. “This has significantly reduced generation from expensive thermal plants and over reliance on hydro generation plants which are vulnerable to unfavorable weather conditions.”

The company declared a dividend of Ksh0.65 per share, up from the previous Ksh0.40 shillings. KenGen’s revenue from electricity sales increased from Ksh17.4 billion to Ksh25.6 billion, while finance costs increased to Ksh3 billion up from Ksh2.5 billion incurred last year attributed to borrowing to finance construction of new power plants.

Geothermal power sales were the company’s backbone earner at Ksh8.3 billion from Ksh2.4 billion last year. The company also registered a power generating capacity increase from 1,337 last year to 1,611 megawatts.

Written by
COLLINS OGUTU -

The writer, a correspondent with Business Today, is a football commentator and finds the money factor in the game. Email him at: [email protected]

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