Kenya: KenGen Reports 79% Growth In Half-Year Profit

The Kenya Electricity Generating Company (KenGen) PLC, East Africa’s largest electricity producer, has reported a remarkable 79% growth in profit after tax for the six months ending 31st December 2024, reaching Khs5.30 billion.

The NSE-Listed (KEGN) power producer posted a net profit of Ksh.5.30 billion, up from Ksh.2.96 billion in the same period last year, a gain primarily driven by aggressive cost-cutting measures and enhanced operational efficiencies.

At the same time, KenGen achieved a 49.4% increase in operating profit, reaching Ksh.6.65 billion from Ksh.4.45 billion in the previous period.

This improvement was fueled by a 13.7% reduction in operating expenses, which fell to Ksh.17.67 billion from Ksh.20.47 billion. Revenues, on the other hand, remained stable at Ksh.27.5 billion.

“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” said Eng. Peter Njenga, the company’s Managing Director and CEO.

“We are optimizing our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country.”

The company’s finance income rose to Ksh.2.45 billion from Ksh.1.87 billion, augmented by higher returns on cash investments and a more stable Kenyan shilling. Meanwhile, finance costs dropped to Ksh.1.13 billion from Ksh.1.49 billion, reflecting improved capital management and debt optimization.

KenGen remains at the forefront of Kenya’s renewable energy transition, supplying 4,291GWh of electricity in the half-year period, up from 4,211GWh in the previous period. This increase was primarily supported by improved hydrology and availability of our generation fleet.

Looking ahead, KenGen is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term blueprint aimed at bolstering Kenya’s green energy transition. Between 2025 and 2027, the company plans to add 194.4MW of installed capacity across geothermal, hydro, and solar projects, along with 100MWh of battery energy storage to enhance grid stability.

With a strong balance sheet and a firm commitment to sustainability, KenGen is positioning itself as a key player in Africa’s clean energy future.

However, the company’s Board has opted not to declare an interim dividend for the period, prioritizing reinvestment and long-term strategic growth to maximize shareholder value.

KenGen’s earnings per share (EPS) surged by 78% to Ksh.0.80, up from Ksh.0.45, reinforcing the company’s ability to create shareholder value in a dynamic energy market.

“We are driving the future of energy in Kenya,” said Njenga, adding: “Our commitment to operational excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable electricity for years to come.”

KenGen remains at the heart of Kenya’s transition to a low-carbon energy future, leveraging its geothermal stewardship and renewable energy expertise. With a resilient business model, strong financial fundamentals, and a clear vision for growth, KenGen is primed to play a catalytic role in shaping the future of Africa’s energy industry.

Source: https://energynewsafrica.com