The Kenya Electricity Generating Company (KenGen) – which is responsible for the production of 80 per cent of the power consumed in the country – made this announcement in their unaudited results for the six months ended 31 December 2014.
The company said its net profit increased by 384.2 per cent to 4.93 billion Kenyan shillings and this bumped up the earnings per share by 387.0 per cent to 2.24 Kenyan shillings.
KenGen reported that its electricity revenue grew by 37 per cent to 11.6 billion Kenyan shillings. While the company’s operating expenditure went up by 19.7 per cent to 7.0 billion Kenyan shillings in 2014 due to rising expenses allied with the new plants.
“Overall our installed capacity grew by 28 per cent from 1231MW in December 2013 to the current 1575MW,” KenGen CEO, Albert Mugo said in a statement.
Total assets grew by 17.6 per cent to 246.94 billion Kenya shillings due to the firm’s additional installation of the 280MW into the national power grid.
On the future outlook of the company, Mugo believes that achievements by KenGen in the past year will aid the firm in attaining significant growth in performance in the next half of the year.
“The commissioning of 280MW Olkaria Plants marks a great milestone in the execution of our G2G Strategy. The 20.4MW Ngong wind project was completed in December 2014 and is being dispatched to the national grid. The installation of the 15MW of Wellheads is progressing well and is expected to be complete by June 2015,” Mugo said.
With the total cost of the project estimated at 1 billion US dollars, the 280MW project comprises Olkaria IV of 140MW and Olkaria I’s units 4 and 5 each with a capacity of 70MW.
“For a long time Kenya has suffered from a lack of efficient capacity, that is why from time to time particularly when we have dry spell we have ended up rationing power. This is because we have been so dependent on hydro. The 280MW project has really helped to bridge the power deficit,” Mugo said in a previous interview with CNBC Africa.
The East African country is looking at increasing its national power output to 5,000MW by 2016 in order to spur industrial growth which is viewed as a vital key in unlocking the potential of the country’s manufacturing sector.
The country’s manufacturing sector – which was a key driver in the expansion of the Kenyan economy going by the latest statistics – contributes about 11 per cent to Kenya’s gross domestic product (GDP).
The Kenyan government said that it will spend about 2 billion US dollars in the medium term to upgrade its power distribution systems.