- KENGEN says the growth was occasioned by more energy sales due to boosted geothermal production owing to the recently commissioned 86MW Olkaria I Additional Unit 6 geothermal power plant.
KenGen Acting Managing Director and CEO Abraham Serem expressed his confidence that the firm’s performance during the half-year in review saying its fundamentals are strong enough to anchor future business growth.
Kenya Electricity Generating Company (KENGEN) has reported a revenue growth of 11 per cent from Sh24.7 billion recorded in 2021 to Sh27.5 billion for the six months ending December 31, 2022.
KENGEN says the growth was occasioned by more energy sales due to boosted geothermal production owing to the recently commissioned 86MW Olkaria I Additional Unit 6 geothermal power plant.
The move resulted in a growth in the sale of electricity unit from 4,006GWhs in 2021 to 4,200GWhs in the period ending December 2022.
The results were announced even as Kenya is experiencing one of its worst droughts, and KenGen says this has adversely affected its hydro generation capacity due to failed rains.
“In previous years, we would be having serious scenarios of power rationing affecting the entire country at a time like now when the rains have failed,” said KenGen Acting Managing Director and CEO Abraham Serem.
However, Serem expressed his confidence that the firm’s performance during the half-year in review saying its fundamentals are strong enough to anchor future business growth.
The KENGEN boss noted that the significant revenue growth was a testament to the company's investment in renewable energy sources, especially in geothermal power.
“Thanks to our geothermal-led strategy and investments in geothermal development over the years, we have been able to save the country from scenarios of power rationing as was the case in earlier years and we are confident that this growth will remain as we continue to work on stabilizing the national grid,” stated Serem.
The NSE-listed power generator says it is on course to start the redevelopment of the 40-year-old 45MW Olkaria I geothermal power plant to enhance its capacity to 63MW.
The trajectory of growth by the company also incorporates the upgrading of Olkaria I Additional Units 4 & 5 and Olkaria IV from the current combined 300MW to 340MW.
“We remain focused on our strategic initiatives, which include diversification of our revenue streams, innovation, and cost optimization.
“Today, our electricity is the most competitively priced and this has continued to cushion Kenyans from rising power prices.”
Serem expressed confidence that the Kenyan electricity generating company will continue to deliver value to its shareholders and all other Kenyan going into the future.