KenGen sees profits surge after cost-cutting drive

Kenya Electricity Generating Company (KenGen) has reported a 79% growth in profits after tax for the six months ending 31 December 2024, driven by aggressive cost-cutting and operational efficiencies

East Africa’s largest electricity producer said that its pretax profits for the six-month period reached 7.95 billion shillings (US$61.63mn), which accentuated its resilience in a shifting energy landscape, according to Peter Njenga, KenGen's managing director and chief executive officer.

“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” he said.

“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.”

KenGen remains at the forefront of Kenya’s renewable energy drive, supplying 4,291 GWh of electricity in the half-year period, up from 4,211 GWh in the previous period.

The increase was primarily supported by improved hydrology and availability of its generation fleet, the company reported.

Looking ahead, the group is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term blueprint aimed at bolstering Kenya’s green energy transition.

Between 2025 and 2027, the company plans to add 194.4 MW of installed capacity across geothermal, hydro and solar projects, along with 100 MWh of battery energy storage to enhance grid stability.

In October 2024, KenGen unveiled its G2G 2034 roadmap for the coming decade, with a clear focus on expanding geothermal, wind and solar investments, as well as advancing operational efficiency and integrating the latest technology into its work with the goal of 100% renewable energy.

Listed on the Nairobi Stock Exchange (NSE), the group currently has an installed generation capacity of 1,785 MW, of which over 93% is drawn from green sources, namely hydro (826 MW), geothermal (754 MW) — an area in which it has pioneered for many years — and wind (25.5 MW), with the balance coming from traditional thermal energy sources.

KenGen is also now helping other African nations tap into their own geothermal potential after honing its expertise at Kenya’s Olkaria fields, following projects in Ethiopia, Djibouti and Tanzania.

It is currently working on a contract to assess geothermal potential in three prospective regions of Eswatini with a view to establishing the feasibility of developing a geothermal power plant.

“We are driving the future of energy in Kenya,” said Njenga. “Our commitment to operational excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable electricity for years to come.”

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