Kenya Electricity Generating Company Plc. (KenGen) is a state-owned corporation, owned 70% by the Government of Kenya and 30% by private shareholders.
The Company is listed in the Nairobi Securities Exchange.
Established in 1954, the company has over the years grown by leaps and bounds.
As at close of the financial year ended 30th June 2019, the Company had an asset base of over KShs 400 Billion.
KenGen is the leading electric energy producer in the Eastern Africa region.
Currently, KenGen’s installed generation capacity is 1,803MW comprising:
- 818MW hydro
- 706MW geothermal
- 253.5MW thermal
- 25.5MW wind
We have 31 power plants spread across various geographical locations namely;
• Western Region – four hydro stations in Turkwel, Sondu Miriu,
Sang’oro, Gogo and one thermal plant in Muhoroni)
• Geothermal area (found in the Rift Valley consisting of both large power plants and wellheads in Olkaria and Eburru).3
• Seven Forks (five power plants along Tana River cascade
comprising Masinga, Kamburu, Gitaru, Kindaruma and Kiambere
• Upper Tana (four power stations namely Mesco, Wanjii, Sagana
• Ngong Wind Farm.
• Kipevu Area (two thermal plants located in Mombasa)
I am glad to say that our performance in power generation has remained commendable. KenGen currently supplies about 72% of the electricity consumed in Kenya, with over 80% of this coming from renewable sources.
As we all know, energy is an enabler of development and if properly harnessed, has the potential of taking our country to the next level in line with the Government’s Vision 2030 development blueprint and the Big 4 Agenda.
The recent milestones have been driven by our Good-to-Great (G2G) Strategy. Kicked off in 2007, the program has been the vehicle through which majority of our projects have been delivered.
• By working with other organisations as well as development partners,we have commenced and completed projects which now give us a total of 1,803 MW.
• Apart from leveraging on our specialization in energy generation, we are keen to continue implementing our Revamped Horizon III Good-toGreat (G2G) Strategy, which remains critical in powering other sectors of the economy such as health, agriculture and industrialization.
• Going forward, we will use our 3-pronged business model to create more value in our operations. These will enhance our capacity expansion as well as diversification goals which are geared towards strengthening our financial muscle and building a sustainable business.
These 3 approaches include:
1. KenGen A – which is the traditional KenGen legal parent
driving the generation business whose growth continues to be
financed on the balance sheet.
2. KenGen B – this is the Public Private Partnership (PPP)
model with ring-fenced risks & cash flows that will fast-track
our installed capacity expansion through joint ventures with
local and international partners.
3. KenGen C – this is a 100% owned subsidiary (named
KESEL), that will drive our consultancy service business
across the region.
• As part of our diversification strategy, we are focusing on non-energy generation revenue sources including consultancies, operations, maintenance services and training.
• This strategy has been instrumental in expanding our operations across Africa. Currently, we are undertaking two drilling contracts in Ethiopia in which we are developing the Aluto, Langano and Tulu Moye geothermal fields.
One contract is for drilling services is valued at USD 56 million while the other is for consultancy services valued at USD6.2 million.
As we speak, our team is in Ethiopia implementing
these contracts. We remain confident that the implementation of these contracts will positively impact our business and improve our brand equity as we continue to create value for our stakeholders.
KenGen is cognizant of the fact that all developments are people-centered and that Communities residing in areas where we operate in are our key partners.
As Project developers, we are alive to the need to obtain the
social license to operate from the Communities prior to and during project implementation.
Towards this end, the Company has developed and implemented a Community Engagement Strategy for a value-based, win-win Community relationship.
This strategy was launched in 2018. KenGen’s approach is to have a constant and continuous way of involving Communities and has worked in ways that leave the Communities engaged
and self-sustaining in their livelihoods.
Under this framework, we have what we call the Stakeholder Coordination Committees (SCC) made up of members of the local community and other opinion leaders who we work with in developing and implementing CSR programs as well as addressing issues of mutual concern.
This has helped to strengthen and enhance our relationship with the host communities.