The continued investment in geothermal power production by Kenya Electricity Generating Company PLC (KenGen) has ensured uninterrupted electricity supply in the country, KenGen Managing Director Eng. Peter Njenga has said.
According to Njenga, despite the prolonged drought, which led to reduced hydro generation, the company’s overall electricity unit sales grew from 7,918 GWh in 2022 to 8,027 GWh in 2023.
“Notably, our investments in geothermal energy ensured uninterrupted electricity supply, even in the face of challenges posed by a prolonged drought and reduced hydropower generation,” he said.
This continued power generation through geothermal led KenGen to record a significant 48 per cent growth in profit after tax for the year ended June 30, 2023.
KenGen made Sh5.02 billion up from Sh3.4 billion in 2022, said Njenga.
Speaking in Mombasa on Friday, Njenga attributed the impressive performance to the enhanced operational efficiency of the company’s geothermal fleet in Olkaria, Naivasha.
This was further bolstered by the positive impact of the newly commissioned Olkaria I Additional Unit 6 geothermal power plant, which added 86MW to the grid in July 2022.
“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 per cent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” said Njenga.
KenGen contributes over 66 per cent of Kenya’s electricity consumption in the year.
At the same time, the company reported a steady 14 per cent growth in revenues from Sh47.48 billion in 2022 to Sh53.96 billion, largely driven by the company’s investments in geothermal energy.
However, KenGen reported an increase in operating costs which the CEO attributed to rising insurance and impairment costs.
This was however matched by growth in revenue resulting in a pre-tax profit of Sh8.5 billion, which was a substantial improvement from Sh6.2 billion reported in the previous year.
“We are confident that our Good-to-Great Transformation Strategy is on course and will continue to deliver growth over the next decade to ensure a reliable supply of clean and affordable energy to the people of Kenya,” he said.
In line with the power demand, KenGen management announced ambitious plans to augment generation capacity by more than 154MW over the next two years through the rehabilitation and uprating of its existing power plants.
The growth in demand for electricity in Kenya continues to soar at about 5 per cent annually.
“One of the projects we are looking to deliver soon include the Gogo Hydropower Redevelopment Project in Migori County which was approved by cabinet recently and is set to elevate the dam's electricity capacity from its current 2MW to 8.6MW,” said Njenga.
KenGen boasts a diverse energy portfolio, including geothermal, hydro, wind, and thermal adding up to 1,904MW of which 86 per cent is drawn from renewable sources.
