KenGen’s profit soars by 79pc amid cost-cutting and operational efficiency
Mathew Chepkewel -MyGov
The Kenya Electricity Generating Company (KenGen), East Africa’s largest electricity producer, has reported a 79 per cent growth in profit after tax for the six months ending 31st December 2024, accentuating the company’s resilience in a shifting energy landscape.
The NSE-listed power producer posted a net profit of Sh5.30 billion up from Sh2.96 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 per cent increase in operating profit, reaching Sh6.65 billion from Sh4.45 billion in the previous period.
This improvement was fueled by a 13.7 per cent reduction in operating expenses, which fell to Sh17.67 billion from Sh20.47 billion. Revenues, on the other hand, remained stable at Sh27.5 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,” he said.
The company’s finance income rose to Sh2.45 billion from Sh1.87 billion, augmented by higher returns on cash investments and a more stable Kenyan shilling.
Meanwhile, finance costs dropped to Sh1.13 billion from Sh1.49 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.
He said that this increase was primarily supported by improved hydrology and availability of our generation fleet.
The CEO added that 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, he pointed out.
KenGen’s earnings per share (EPS) surged by 78 per cent to Sh0.80, up from Sh0.45, 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.”