East Africa’s leading energy producer, Kenya Electricity Generating Company PLC (KenGen) has posted a Ksh4.7 billion profit after tax for the period ending June 30, 2022, more than double the Ksh.1.8 billion posted by the company over the same period last year.
The increase, representing a 157% year-on-year rise, is attributable to business growth at a time when the NSE-listed company commissioned 86MW Olkaria I Unit 6 earning a tax expense reduction.
During the same period, revenue grew by 7.5% from Ksh.45.7 billion in 2021 to Ksh.49.2 billion, as the company continued to benefit from its investments in geothermal which ensured stable supply despite low generation from hydropower plants due to poor hydrology in most parts of the year.
Over the period ending June 30, 2022, KenGen generated more than 70% of the country’s renewable energy. This came from the company’s total fleet of hydro, geothermal, wind, and thermal, with a combined capacity of 1,904MW which delivered 7,918kWh during the year.
Commenting on the results, KenGen Acting Managing Director and CEO, Abraham Serem said: “KenGen has strong business fundamentals, posting stable results backed by its growth, innovation, and expansion strategy. We are pleased to report growth in profit after tax for the year ended June 30, 2022, despite prolonged drought which has affected hydropower generation during the period under review. We look forward to a promising year ahead buoyed by expected increased economic activities.
Mr. Serem went on to state: “From an innovation perspective, we are particularly keen to explore opportunities in the E-mobility space, which we recently delved into by unveiling four electric vehicles which we will use to collect data over the medium term with the view of informing future investment decisions on the same.”
KenGen will continue supporting geothermal power development in the region as well as exploring new business opportunities that are consistent with its renewable energy focus. For 2022, the company looks to kick off the redevelopment of a forty-year-old 45MW Olkaria I geothermal power plant to give it a new lease of life and boost its capacity to more than 50MW as well as the uprating of Olkaria I Additional Units 4 & 5 and Olkaria IV. This project seeks to grow the capacity of the two geothermal power stations from the current 280MW to 320MW.