KenGen Announces Sh18 Billion Profit

Kenya Electricity Generating Company (KenGen) has posted a 133 per cent jump in net profit to Sh18.38 billion.

Profit before tax grew by 18.3% from KShs 11.7 billion to KShs 13.8 billion, mainly reflecting the additional revenue contribution by #OlkariaV and Ethiopia operations.#KenGenFY2020 pic.twitter.com/bP3a3yrzpd

— KenGenKenya (@KenGenKenya) January 28, 2021

This was announced after KenGen published full financial report of the year ending June 2020 on the increased output of cheaper geothermal and tax savings.

KenGen completed its Olkaria V geothermal plant in the year under review, which helped it cut reliance on thermal generators saving on costs while boosting its electricity sales by 11.3 per cent to Sh39.8 billion.

Costs from the use of the thermal plants, mainly fuel charges, declined 57.9 per cent from Sh10.1 billion to Sh4.2 billion.

“KenGen recorded a 13.4 per cent growth in electricity revenue mainly attributed to the full operationalisation of our 165MW (megawatts) of Olkaria V geothermal power plant in November 2019 which boosted geothermal production by 14 per cent,” managing director Rebecca Miano said on Thursday.

The company said it witnessed demand challenges due to coronavirus lockdowns on businesses and industry which partly affected the second half of the year.

The government introduced containment measures to curb the spread of the virus in March following the reporting of the first Covid-19 case in Kenya.

Electricity demand, however, picked up following the reopening of the economy, KenGen said, to peak at 1,966MW on December 11 surpassing levels seen before the pandemic of 1,926MW.

Ms Miano said the firm sees increased revenue going forward hinged on increased power sales and diversification strategy.

Here are the tweets in the now trending hashtag #KenGenFY2020