KenGen Reports 79% Growth in Half-Year Profit

Nairobi, Kenya – Kenya Electricity Generating Company (KenGen) PLC, East Africa’s largest power producer, has posted a remarkable 79% increase in profit after tax for the six months ending December 31, 2024, highlighting the company’s financial resilience and operational efficiency.

The NSE-listed power firm (KEGN) reported a net profit of Ksh.5.30 billion, up from Ksh.2.96 billion in the same period last year. The surge was primarily driven by aggressive cost-cutting measures and enhanced operational efficiencies.

At the same time, KenGen’s operating profit increased by 49.4%, reaching Ksh.6.65 billion, compared to Ksh.4.45 billion in the previous period. This improvement was largely attributed to a 13.7% reduction in operating expenses, which fell to Ksh.17.67 billion from Ksh.20.47 billion. Meanwhile, revenue remained stable at Ksh.27.5 billion.

KenGen’s finance income rose to Ksh.2.45 billion, up from Ksh.1.87 billion, boosted by higher returns on cash investments and a more stable Kenyan shilling. Additionally, the company recorded a drop in finance costs to Ksh.1.13 billion from Ksh.1.49 billion, reflecting improved capital management and debt optimization.

“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” said Eng. Peter Njenga, KenGen’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.”

Growth in Renewable Energy Generation

KenGen remains at the forefront of Kenya’s renewable energy transition, supplying 4,291GWh of electricity during the half-year period, up from 4,211GWh in the previous period. This growth was supported by improved hydrology and increased availability of its generation fleet.

Looking ahead, KenGen is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term plan designed to drive Kenya’s clean energy future. Between 2025 and 2027, the company plans to add 194.4MW of installed capacity across geothermal, hydro, and solar projects, alongside a 100MWh battery energy storage system to enhance grid stability.

Prioritizing Long-Term Growth Over Dividends

Despite the strong financial performance, KenGen’s Board opted not to declare an interim dividend, choosing instead to reinvest profits into strategic growth initiatives to maximize shareholder value.

KenGen’s earnings per share (EPS) surged by 78%, reaching Ksh.0.80, up from Ksh.0.45, reinforcing the company’s ability to deliver value in a dynamic energy market.

“We are driving the future of energy in Kenya,” Njenga added. “Our commitment to operational excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable electricity for years to come.”