Kenya Electricity Generating Company PLC (KenGen) has reported a significant growth in net revenue, reaching Sh24.7 billion for the six months ending December 31, 2023. This marks an 8.4% increase compared to the same period in the previous year.
The company attributes this growth to favourable hydrology and heightened plant efficiency, creating a foundation for sustained expansion in the energy sector. KenGen Managing Director Peter Njenga highlighted the heavy rainfall during the half-year, contributing to a remarkable seven percent boost in hydro-generation.
“The substantial increase in hydro-generation played a key role in mitigating the high fuel costs associated with thermal generation, resulting in a commendable dip of 3.5%,” stated Njenga.
KenGen, listed on the Nairobi Securities Exchange (NSE), also noted an overall growth of 1.8% in profit before tax, increasing from Sh4.7 billion in 2022 to Sh4.8 billion in 2023.
However, the company reported a 16.4% rise in operating expenses due to increased plant operating and maintenance costs linked to global macroeconomic pressures. Additionally, KenGen faced a 25.7% surge in tax expenses, rising from Sh1.48 billion in 2022 to Sh1.8 billion in 2023, primarily due to increased unrealized foreign exchange losses, among other factors.
Despite these challenges, KenGen stated that its profit after tax experienced a modest decline of 9.2%, dropping from Sh3.3 billion in the corresponding period of 2022 to Sh2.9 billion in 2023.
