Kenya Electricity Generating Company (KenGen) has reported Sh2.96 billion in net profits for the six months to December 2023.
This is a 9.2 percent drop from the Sh3.26 billion reported in a similar period last year. Local currency devaluation and increased tax expenses ate into the earnings.
Operating Expenses increased by 16.4 percent from Sh8.7 billion in 2022 to Sh10.10 billion.
KenGen attributed this to higher plant operating and maintenance costs occasioned by depreciation of the Kenya Shilling.
Net finance income increased by Sh527 million from a net cost of Sh145 million to a net income of Sh382 million for the six months ended 31st December 2023 owing to increased return on cash investments.
“The operational environment for the aforementioned period was characterised by heavy rainfall that led to an increase in water levels within our hydro dams thus boosting hydro-generation by a remarkable 7 percent," said KenGen Managing Director and CEO, Peter Njenga.
He said the substantial boost in hydro-generation played a key role in mitigating the high fuel costs associated with thermal generation, which saw a commendable dip of 3.5 percent.
The tax expense on the other hand rose from Sh1.488 billion for the six months ended 31st December 2022 to Sh1.871 billion for the period ended December 31, 2023.
This represents a 25.7 percent jump due to increase in unrealised foreign exchange losses owing to the depreciation of Kenya Shilling that are disallowable for tax purposes among other.
The performance has seen the firm pause issuance of interim dividends for the review period.
