KenGen profit up 54% to Sh10.5bn on growth and efficiency gains

Kenya Electricity Generating Company (KenGen) has reported a 54 per cent rise in profit after tax for the year ended June 30, as it remained the main power generator in the country.

The Nairobi Securities Exchange–listed firm’s profit hit Sh10.48 billion, up from Sh6.80 billion recorded in 2024, buoyed by stronger operational efficiency, cost optimisation and increased generation from its diversified energy portfolio.

Profit before tax rose 42 per cent to Sh15.47 billion.

“KenGen’s performance this year reflects the strength of our strategy, our people and our commitment to sustainable energy. As we build on this momentum, we remain dedicated to powering Kenya’s future with clean, reliable and affordable electricity,” managing director and CEO Peter Njenga said on Friday.

KenGen offers the cheapest electricity to utility firm–Kenya Power, which remains tied to expensive Power Purchase Agreements with Independent Power Producers (IPPs), whose contracts are mainly denominated in US dollars, leading to high costs for electricity in the country.

KenGen’s revenue from non–traditional sources grew by 235 per cent, reflecting the company’s expanding diversification and consultancy business, including the successful completion of geothermal work in Eswatini.

Revenue for the year remained stable at Sh56.10 billion, as operating expenses declined by 11 per cent to Sh35.14 billion, driven by lower depreciation charges and reduced overheads resulting from ongoing efficiency initiatives.

Net foreign exchange and fair value gains amounted to Sh1.45 billion, compared to a loss of Sh722 million in the previous year, reflecting the stabilisation of the Kenya Shilling.

Meanwhile, finance costs fell by 20 per cent to Sh2.25 billion, supported by continued loan repayments and a reduced debt balance.

KenGen’s total assets rose to Sh505.6 billion, from Sh491.3 billion the previous year, while shareholder equity climbed to Sh284.5 billion.

The company ended the year with cash and cash equivalents of Sh30.1 billion, up from Sh25.6 billion in 2024.

Operationally, KenGen maintained a strong performance amid steady economic growth and heightened energy demand.

Kenya’s national peak electricity demand reached a record 2,392MW in August 2025, a five per cent increase from the prior year.

KenGen’s installed capacity of 1,786 MW including geothermal, hydro, wind and thermal generation, produced 8,482GWh of electricity, up one per cent from 2024.

Looking ahead, the company said it remains focused on delivering its G2G 2034 Strategy, which aims to accelerate renewable energy development and diversify revenue streams.

Its current project pipeline of 253MW includes the 63MW Olkaria I project, the 42.5MW Seven Forks Solar Project and the 8.6MW Gogo Hydro Power Plant upgrade.

KenGen is also advancing its regional expansion, with the upcoming geothermal drilling project in Ngozi, Tanzania, marking a significant milestone in its cross-border ambitions.

"As we move forward, KenGen's leadership in renewable energy and our ongoing commitment to innovation and sustainability will remain at the core of everything we do. We are not just providing energy, we are helping to shape a greener, more sustainable future for Kenya and the region," said Njenga.

KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60 per cent.

The company’s primary business is to provide safe, reliable and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.