Kenya Electricity Generating Company (KenGen) has reported 8.4% increase in net revenue, reaching Sh24.7 billion for the six months ending December 31, 2023, as heavy rainfall ensured an increase in water levels enabling favorable hydrology and heightened plant efficiency.
Its profit after tax declined by 9.2% from Shh.3.3 billion in the corresponding period of 2022 to Sh2.9 billion in 2023.
“The operational environment for the aforementioned period was characterized by heavy rainfall that led to an increase in water levels within our hydro dams thus boosting hydro-generation by a remarkable 7%. This substantial boost in hydro-generation played a key role in mitigating the high fuel costs associated with thermal generation, which saw a commendable dip of 3.5%,” said the managing director and CEO of KenGen, Eng. Peter Njenga.
The company’s operating landscape, however, witnessed a 16.4% increase in operating expenses, predominantly influenced by higher plant operating and maintenance costs stemming from the global macro-economic pressure.
At a time when the national electricity demand continued its upward trajectory, peaking at 2,170.56MW on December 19, 2023, overall, electricity units generated demonstrated a modest improvement of 0.3%, reaching 4,211GWhs.
Additionally, the NSE-listed energy generator’s “positive momentum” was slowed by tax expense which surged by 25.7%, escalating from Sh1.48 billion in 2022 to Sh1.8 billion in 2023, primarily due to an increase in unrealized foreign exchange losses that are disallowable for tax purposes among others.
It maintains a positive outlook, underscoring the escalating national demand for clean electric energy citing projects, including the rehabilitation of the Olkaria I geothermal power plant which KenGen says is well on schedule.
Its Olkaria project which aims to increase the combined capacity of two geothermal power plants from 300MW to 340MW is expected to be complete by December 2026.
