KenGen’s newest 83MW geothermal power plant, Olkaria I Unit 6 (source: KenGen)
Kenya’s KenGen has posted a 35% increase in profit for the past year on the strength of their geothermal and hydropower generation output.
Government-owned power generation company Kenya Electricity Generating Company (KenGen) has announced a year-to-year profit increase of 35%, from Sh 5 billion to 6.8 billion (approx. USD 38.8 million to 52.7 million) for the period that ended in June 2024. The company attributed this growth in profit to the performance of its geothermal and hydropower plants.
KenGen dispatched a total of 8,384 GWh of electricity over the past year, a rise from 8,027 GWh in the previous year (2022-2023). This achievement is especially significant given the inconsistent weather conditions in Kenya during the period. Peter Njenga, KenGen’s Managing Director and CEO, highlighted that KenGen’s power plants played an essential role in meeting the peak electricity demand of 2,149 MW in Kenya.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” Njenga noted.
A Continued Push for Green Power
KenGen has been pivotal in establishing Kenya as a leader in renewable energy within the African context. Currently, approximately 90% of Kenya’s power is derived from renewable sources, with ambitions to achieve 100% renewable energy by 2030. As part of this vision, KenGen remains committed to expanding its renewable energy portfolio through solar, hydropower, and geothermal projects.
Among its ongoing initiatives is the rehabilitation of the Olkaria I geothermal power plant, aimed at increasing its capacity from 45 MWe to 63 MWe. Furthermore, regulatory filings have indicated KenGen’s plans to invest in the construction of the 80.3-MW Olkaria VII power plant. These projects are part of a broader strategy to enhance the company’s capacity and output.
Additionally, KenGen is exploring avenues to diversify its revenue streams through the establishment of a Green Energy Park in Olkaria. This initiative aims to provide geothermal heat and power to industrial and commercial facilities, further promoting the use of renewable energy in the region.
Source: ESI Africa and The Star Kenya