Listed power generating company Kenya Electricity Generating Company (KenGen) has posted a KSh 5.3 billion in profits after tax in the 6 months to December 2024, 79% jump from KSh 2.95 billion recorded in the corresponding period in 2023.
- Despite the jump in profits, the company’s revenues declined 3.6% to KSh 27.5 billion from KSh 28.5 billion in 2023.
- Electricity sales increased by 1.9% to 4,291 gigawatt hours in the half year to December 2024 from 4,211 gigawatt hours supplied in the prior period.
- Operating expenses went down 13.7% to KSh 17.6 billion attributed to lower plant and maintenance costs.
“The growth was attributable to a 13.7% drop in operating expenses, driven by agile cost optimization strategies and cutting-edge efficiency enhancements across the power plants and an increase in finance income,” KenGen noted in the earnings report.
KenGen’s finance income saw a 30.5% uptick to KSh 2.4 billion from KSh 1.9 billion with finance costs declining by 23.8% to KSh 1.1 billion in the period, reflecting improved capital efficiency and debt management.
Tax expenses increased by 42% in the 6 months to KSh 2.7 billion from KSh 1.9 billion in 2023, owing to increased profitability. Reimbursable fuel and water costs went up 9.1% to KSh 4.1 billion from KSh 3.8 billion in 2023. According to the company, electricity demand grew with the number of national electricity units generated grew by 5.9% in the period.
The government, through the National Treasury, owns 70% of KenGen. In 2024, the electricity generator was the 6th most profitable stock at the Nairobi Securities Exchange and the 3rd best in dividend yields. The company was added to the MSCI Frontier Markets Small Cap Index in August 2023.
