Kenya Electricity Generating Company PLC (KenGen) has reported a strong operational and financial performance for the fiscal year ending June 30, 2024. Despite challenging weather conditions in the first half of the year, KenGen increased its electricity units dispatched by 4%, from 8,027 GWh to 8,384 GWh. Favorable rains in the second half boosted hydroelectric generation, while geothermal production provided a steady baseline for meeting demand, which peaked at 2,149 MW.
As a result, KenGen’s revenue grew by KES 2.333 million, from KES 53.964 billion in 2023 to KES 56.297 billion as of June 2024, driven largely by the increased availability of geothermal and hydro plants. Operating profit remained stable at KES 9.551 billion, despite inflationary pressures. The company’s sustainable cost management preserved profitability, while net profit after tax surged by 35% to KES 6.797 billion, highlighting robust earnings growth propelled by higher electricity revenue and finance income.
Operating profit remained stable at KES 9.551 billion, reflecting effective cost management despite inflationary pressures and the operational challenges that marked the year. KenGen’s disciplined approach to expenditure allowed it to maintain a strong profit margin. Notably, net profit after tax surged by 35%, reaching KE 6.797 billion, an increase attributed to growth in electricity revenue and finance income.
Additionally, KenGen’s dividend payout has also been warmly received by investors, who see it as a positive reflection of the company’s strong performance and commitment to rewarding shareholders. The company proposed a dividend of KES 0.65 per share for the fiscal year ending June 2024, up from KES 0.30 the previous year – resulting in a total payout of KES 4.286 billion from KES 1.978 billion. This increase, backed by growth in revenue and effective cost management, signals to investors that KenGen is on solid financial footing, balancing profitability with steady growth.
In tandem with financial growth, KenGen’s strategic focus on renewable energy continues to strengthen Kenya’s energy landscape. The decommissioning of 133.5 MW of thermal plants in Muhoroni and Kipevu marked a shift away from fossil fuels and furthered KenGen’s commitment to cleaner, more sustainable power. KenGen’s renewable energy projects, including the 80MW Olkaria VII geothermal expansion, a 42.5MW solar plant at Seven Forks, and an 8.6MW upgrade to the Gogo Hydro plant, highlight the company’s commitment to increasing installed capacity and reducing its carbon footprint. Additionally, the rehabilitation of the Olkaria Units 1, 2, and 3 geothermal plants aims to boost their output from 45MW to 63MW, extending their operational life by 25 years.
As Kenya’s primary electricity generator, KenGen meets nearly 75% of our country’s power needs, positioning it as an essential player in energy infrastructure and industrial development. As such, the “Good-2-Great” (G2G) 2024-2034 Corporate Strategy revealed by the company sets it on a robust growth trajectory by prioritizing renewable energy expansion, operational efficiency, and technological integration. This ten-year strategy aims to secure KenGen’s leadership in clean energy, ensuring that it remains a cornerstone of Kenya’s energy and industrial sectors.
In addition, KenGen’s ongoing investments in renewable energy infrastructure align closely with Kenya’s Vision 2030 goals, which prioritize industrialization, sustainable energy access, and environmental stewardship. The setup of the Olkaria Green Energy Park further demonstrates KenGen’s role in Kenya’s industrialization by offering a sustainable energy source for industrial operators. This innovation positions Kenya as a competitive industrial hub in East Africa for environmentally responsible development – a key consideration for industries aiming to reduce carbon footprint.
