KenGen rides on new plants to record Sh4.9bn profit

KenGen managing director Albert Mugo at a past press conference. New power plants saw Kenya Electricity Generating Company (KenGen) profit after tax for the half-year period to December 2014 rise to Sh4.9 billion. FILE PHOTO |  NATION MEDIA GROUP

In Summary

• The profit jump was fuelled by a 36 per cent upswing in revenue from the sale of electricity to Sh11.6 billion from Sh8.5 billion during the period under review.
• Investments in new power plants lifted KenGen’s installed capacity from 1,231 megawatts as at December 2013, to 1,575 megawatts.
• Olkaria’s 280-megawatt plants are among key power projects that the government is banking on to achieve its target of raising the country’s installed capacity by 5,000 megawatts by the end of next year.

By NATION REPORTER
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New power plants saw Kenya Electricity Generating Company (KenGen) profit after tax for the half-year period to December 2014 rise to Sh4.9 billion.

KenGen recorded Sh1 billion in a similar period in 2013. The profit jump was fuelled by a 36 per cent upswing in revenue from the sale of electricity to Sh11.6 billion from Sh8.5 billion during the period under review.

“We achieved significant growth in capacity expansion, revenue and profitability following the completion of our Vision 2030 flagship project, the 280-megawatt Olkaria plants. Our performance was further enhanced by installation of additional wellheads and completion of works on Olkaria II power plant, which has been undergoing maintenance,” said managing director Albert Mugo.

Investments in new power plants lifted KenGen’s installed capacity from 1,231 megawatts as at December 2013, to 1,575 megawatts.

During the period under review, however, the firm’s operating expenses increased from Sh5.8 billion to Sh6.9 billion while interest income declined by 35 per cent to Sh172 million as a result of muted earnings from Treasury bonds and cash balances following investments in projects.

Olkaria’s 280-megawatt plants are among key power projects that the government is banking on to achieve its target of raising the country’s installed capacity by 5,000 megawatts by the end of next year.

The latest geothermal plant was hooked to the national grid in December, last year, putting geothermal ahead of hydro and thermal generators as Kenya’s main sources of electricity.