TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

The Kenya Electricity Generating Company (KenGen) PLC, has demonstrated its resilience in a changing energy landscape with a 79% increase in profit after tax for the six months ended December 31, 2024.

The NSE-listed electricity generator (KEGN) reported a net profit of KSh 5.30 billion, up from KSh 2.96 billion during a similar period in the previous financial year.

In a statement, KenGen attributed the improvement to increased operating efficiencies and aggressive cost-cutting efforts.

"This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency. We are optimising our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country," the company's managing director and CEO Peter Njenga explained.

KenGen's operating profit increased by 49.4% to KSh 6.65 billion from KSh 4.45 billion in the prior period.

This was driven by a 13.7% decrease in operational expenses, from KSh 20.47 billion to KSh 17.67 billion. On the other hand, revenues remained stable at KSh 27.5 billion.

Higher returns on cash investments and a more stable Kenyan shilling helped the company's finance income rise from KSh 1.87 billion to KSh 2.45 billion.

Finance costs, on the other hand, decreased from KSh 1.49 billion to KSh 1.13 billion, indicating better debt optimisation and capital management.

The half-year period saw an increase in KenGen's energy supply from 4,211GWh to 4,291GWh. Improved hydrology and the availability of the generating fleet supported this growth.

Under its G2G 2034 Strategy, a long-term plan designed to support Kenya's green energy transition, KenGen is concentrated on growing its portfolio of renewable energy sources.

To improve grid stability, the firm intends to install 194.4MW of capacity between 2025 and 2027 spanning solar, hydro, and geothermal projects in addition to 100MWh of battery energy storage.

In related news, Kenya Power and Lighting Company (KPLC) recorded a significant increase in net profit to KSh 9.9 billion in six months ending December 2024, up from KSh 319 million in a similar period in 2023.

KPLC's latest financial results showed the electricity distributor registered a 5% growth in sales from 5,225 Gwh to 5,507 Gwh.

The utility company attributed the rise in profit to a stable Kenya shilling against the United States (US) dollar and other international currencies.

Source: TUKO.co.ke