The Kenya Electricity Generating Company (KenGen) experienced a 9.2 per cent decrease in its profit after tax for the six months ending December 2023 compared to the same period in 2022.

This decline, attributed to increased tax expenses and foreign exchange losses, comes amidst positive operational developments.

Net profit for the period dropped from Sh3.3 billion to Sh2.9 billion, despite an 8.4 per cent increase in net revenue to Sh24.7 billion.

This positive revenue performance stemmed from improved hydrology, which led to a 7 per cent increase in hydro-generation and helped mitigate the impact of higher fuel costs associated with thermal generation, which saw a commendable 3.5 per cent decrease.

"The past six months witnessed favourable weather conditions that significantly boosted hydro-generation," remarked KenGen's Managing Director and CEO, Peter Njenga.

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He further elaborated, "This substantial increase in hydro-power generation played a crucial role in offsetting the high fuel costs associated with thermal generation, which experienced a noteworthy reduction."

However, these operational improvements were overshadowed by a 25.7 per cent rise in tax expenses, reaching Sh1.8 billion, and a 16.4 per cent increase in operating costs due to higher plant operating and maintenance expenses stemming from global macroeconomic pressures.

Despite the profit decline, KenGen remains optimistic, underscoring the growing national demand for clean electric energy.

The company is actively pursuing various projects to address this demand, including the ongoing rehabilitation of the Olkaria I geothermal power plant and the Olkaria uprating project, aiming to increase the combined capacity of two geothermal plants from 300 MW to 340 MW by December 2026.