KenGen eyes Malawi and Tanzania
Tuesday October 31 2023
Kenya Electricity Generating Company’s geothermal wells in Nakuru County, Kenya in June 2020. PHOTO | NMG
Kenya Electricity Generating Company Plc (KenGen) plans to invest more in Tanzania and Malawi after successively entering Ethiopia and Djibouti markets.
CEO Peter Njenga said the firm had made strides in Ethiopia and Djibouti and, this financial year, it received invitation from Tanzania.
Read: KenGen eyes Tanzania geothermal deals
“Malawi have visited our plants several times… we shall enter their market soon,” said Mr Njenga.
He was speaking in Mombasa on Friday while releasing the firm’s financial report.
He said the company had defied ongoing global recession to post significant growth in profit after tax for the year ended June 30, 2023.
During the period under review, KenGen reported a 48 percent growth in profit after tax surging to $502 million up from $340 million in 2022.
Remarkable resilience
The NSE-listed company also reported a steady 14 percent growth in revenues from $474 million in 2022 to $539 million, largely driven by investments in geothermal energy.
Read: Future looks bright for geothermal power in East Africa
Mr Njenga attributed the impressive performance to the enhanced operational efficiency of KenGen’s geothermal fleet in Olkaria, Naivasha, with the newly commissioned Olkaria I, which added 86MW to the grid in July 2022.
“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” he added.
“In a landscape filled with opportunities and challenges, the KenGen team has demonstrated remarkable resilience. We announce a remarkable $502 million representing a 48 percent growth in profit after tax,” he said.
The company, however, cautioned Kenyans against recession and depreciation of the shilling as they will impact future projects.
“We are repairing and refurbishing our decommissioned plants. We are encouraged to invest more by the increasing demand of electricity in Kenya, which continues to grow at five percent annually.”