Kenya Electricity Generating Company (KenGen) has reported a remarkable 48 per cent increase in its profit after tax, reaching a total of Sh5.02 billion for the fiscal year ending on June 30, 2023.

This notable surge in profits is attributed to a significant boost in the company's net profit compared to the previous year, which stood at Sh3.4 billion.

In addition to the impressive profit figures, KenGen experienced substantial revenue growth, with a 14 per cent increase, reaching Sh53.96 billion, as compared to the Sh47.48 billion revenue from the corresponding period last year.

Peter Njenga, the Managing Director and CEO of KenGen, attributes the company's outstanding performance to the operational efficiency of its geothermal fleet located in Olkaria, Naivasha.

"The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 per cent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh," Njenga stated.

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While KenGen's performance has been positively impacted by its geothermal power plants, it also faced an increase in operating costs.

Njenga noted that these cost increases were primarily due to rising insurance and impairment expenses.

Nonetheless, the surge in revenue effectively offset the increased costs, resulting in a pre-tax profit of Sh8.5 billion, marking a substantial improvement from the Sh6.2 billion reported in the previous fiscal year.

In response to this remarkable performance, Njenga expressed his confidence in KenGen's strategic direction.

"We are confident that our Good-to-Great Transformation Strategy is on course and will continue to deliver growth over the next decade to ensure a reliable supply of clean and affordable energy to the people of Kenya," he emphatically said.

KenGen's remarkable financial results are not only a testament to the company's dedication to providing clean and affordable energy but also a beacon of hope for the future, as it positions itself to contribute significantly to Kenya's energy needs.

With a focus on operational efficiency and sustainability, KenGen is set to play a pivotal role in ensuring a stable and cost-effective energy supply for the people of Kenya.