KenGen posts solid half-year performance

Kenya Electricity Generating Company Plc (KenGen) has reported a commendable half-year performance, marked by a significant 8.4 per cent increase in net revenue, reaching Ksh24.7 billion for the period ending December 2023. The company's Managing Director, Peter Njenga, discussed the key factors contributing to this growth in a recent interview with CNBC Africa. Njenga highlighted the positive impact of favorable weather conditions on hydro generation, attributing a 70 per cent increase to higher water inflows in the region. KenGen, a key player in East Africa's energy sector, boasts an installed capacity of 1,904 megawatts, with a strong focus on renewable sources such as hydro, geothermal, and wind, in line with sustainability and climate action goals. The firm commands a 60 per cent market share in Kenya and is actively pursuing diversification strategies and new revenue streams through partnerships and projects in the region. Njenga emphasized the importance of efficiency improvements and maintenance programs to enhance revenue generation and operational performance. Looking ahead, KenGen's outlook for the year includes initiatives to upgrade existing power plants, venture into solar energy, and expand geothermal projects, such as the rehabilitation of the Olkaria 1 plant. The company is committed to monitoring project timelines and adhering to regulatory frameworks to meet its December 2026 target completion date. In terms of climate adaptation, KenGen continues to prioritize renewable energy projects and environmental sustainability efforts, such as tree restoration programs in key operational areas. The company's strategic focus on green energy and eco-friendly practices underscores its commitment to sustainable growth and environmental stewardship.