The Kenya Electricity Generating Company (KenGen) PLC, East Africa’s largest electricity producer, has reported a remarkable 79 percent growth in profit after tax for the six months ending December 31, 2024. This significant increase underscores the company’s resilience and strategic focus amidst a rapidly evolving energy landscape.
The NSE-listed power producer (KEGN) posted a net profit of Ksh.5.30 billion, a sharp rise from Ksh.2.96 billion recorded during the same period last year. This impressive performance has been largely attributed to aggressive cost-cutting measures and enhanced operational efficiencies, which have positioned KenGen as a key player in Kenya’s renewable energy transition.
KenGen’s operating profit also saw a substantial rise of 49.4 percent, climbing to Ksh.6.65 billion from Ksh.4.45 billion in the previous period. This growth was fueled by a notable 13.7 percent reduction in operating expenses, which fell from Ksh.20.47 billion to Ksh.17.67 billion. Interestingly, despite these gains, the company’s revenues remained stable at Ksh.27.5 billion, highlighting KenGen’s ability to achieve profitability through internal efficiencies rather than revenue expansion alone.
“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” said Eng. Peter Njenga, the company’s Managing Director and CEO. “We are optimizing our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country.”
KenGen’s robust financial performance was further supported by a rise in finance income, which grew to Ksh.2.45 billion from Ksh.1.87 billion, driven by higher returns on cash investments and a more stable Kenyan shilling. Additionally, finance costs dropped significantly to Ksh.1.13 billion from Ksh.1.49 billion, reflecting improved capital management and effective debt optimization strategies.
Earnings per share (EPS) surged by 78 percent to Ksh.0.80, up from Ksh.0.45, reinforcing the company’s capacity to deliver strong shareholder value even amid market fluctuations.
KenGen remains at the forefront of Kenya’s renewable energy transition, supplying 4,291 GWh of electricity during the half-year period, up from 4,211 GWh in the same period last year. This growth was primarily supported by improved hydrology and the enhanced availability of the company’s generation fleet.
Looking ahead, KenGen is focused on expanding its renewable energy portfolio under its ambitious G2G 2034 Strategy, a long-term blueprint designed to accelerate Kenya’s green energy transition. Between 2025 and 2027, the company plans to add 194.4 MW of installed capacity across geothermal, hydro, and solar projects. Furthermore, KenGen intends to deploy 100 MWh of battery energy storage systems to enhance grid stability and support the integration of renewable energy sources.
“Our commitment to operational excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable electricity for years to come,” Njenga emphasized
Despite the strong financial results, KenGen’s Board of Directors has opted not to declare an interim dividend for the period. This decision reflects the company’s strategic focus on reinvestment to support long-term growth and maximize shareholder value.
KenGen’s forward-looking approach, underpinned by a strong balance sheet and a firm commitment to sustainability, positions the company as a pivotal player in shaping Africa’s clean energy future.
“We are driving the future of energy in Kenya,” Njenga concluded. “With a resilient business model, strong financial fundamentals, and a clear vision for growth, KenGen is primed to play a catalytic role in the continent’s energy transformation.”