KENGEN Plc posts revenue growth of 11pc to KES27.5Bn H2 2022
Kenya Electricity Generating Company PLC (KenGen) has reported a growth in total revenue of 11% to KES 27.5 billion in the second half of 2022 compared to Ksh.24.7 billion in 2021.
The increase in revenue is credited to the rise in energy sales resulting from expanded geothermal production capacity.The recently launched Olkaria I Additional Unit 6 geothermal power plant, generating 86MW, was the driving force behind the growth in electricity unit sales from 4,006GWhs in 2021 to 4,200GWhs by the end of December 2022.
The half-year results coincided with an extended drought, one of the most prolonged in recent times which has affected its hydro generation capacity due to the low water levels caused by inadequate rainfall across multiple seasons.
”In previous years, we would be having serious scenarios of power rationing affecting the entire country at a time like now when the rains have failed”.Said KenGen Acting Managing Director & CEO-Abraham Serem
Mr.Serem expressed his satisfaction and confidence in the company’s performance during the period under review. He stated that the company’s strong fundamentals were capable of supporting future business growth. He attributed the increase in revenue to the company’s investment in renewable energy sources, particularly in geothermal power.
According to Mr Serem, the company’s geothermal-led strategy and investments in geothermal development have helped to prevent power rationing in the country, which was a common occurrence in previous years. He also expressed confidence that the company’s growth would continue as they worked towards stabilizing the national grid.
The NSE-listed company is set to begin the refurbishment of the Olkaria I geothermal power plant, which is forty years old, as planned. The objective is to increase its capacity from 45MW to 63MW, as well as enhance the Olkaria I Additional Units 4 & 5 and Olkaria IV, which together currently generate 300MW, to a total of 340MW.
We remain focused on our strategic initiatives, which include diversification of our revenue streams, innovation, and cost optimization. Today, our electricity is the most competitively priced and this has continued to cushion Kenyans from rising power prices. We are confident that we will continue to deliver value to our shareholders and Kenyans going forward.