Kenya Electricity Generating Company PLC (KenGen) has announced growth in net revenue to Sh24.7 billion for six months ending December 31, 2023.
The growth represents an 8.4 per cent increase in net revenue for the same period last year.
The company attributed the growth to favourable hydrology and heightened plant efficiency, which they said set the stage for sustained growth in the energy sector.
KenGen's managing director and CEO, Eng Peter Njenga said the half-year period recorded heavy rainfall, which boosted hydro-generation by a remarkable seven per cent.
"This 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 per cent,” Njenga said.
The NSE-listed energy generator also noted that it recorded an overall growth of 1.8 per cent in profit before tax, which grew from Sh4.7 billion in 2022 to Sh4.8 billion in 2023.
According to KenGen, however, their operating expenses rose by 16.4 per cent due to increased plant operating and maintenance costs as a result of global macroeconomic pressure.
"At the same time, KenGen’s positive momentum was slowed by tax expense which surged by 25.7 per cent, escalating from Sh1.48 billion in 2022 to Sh1.8 billion in 2023, primarily due to an increase in unrealized foreign exchange losses that are disallowable for tax purposes among others," KenGen said.
The power generator added that its profit after tax declined by 9.2 per cent from Sh3.3 billion in the corresponding period of 2022 to Sh2.9 billion in 2023.
