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KenGen Managing Director Simon Ngure attributed the increase to a Sh1.6 billion tax credit resulting from capital allowances enjoyed by the company following the completion of Sang'oro and Kindaruma power plants/FILE

Kenya

Sh1.6bn tax credit boosts KenGen profit

KenGen Managing Director Simon Ngure attributed the increase to a Sh1.6 billion tax credit resulting from capital allowances enjoyed by the company following the completion of Sang'oro and Kindaruma power plants/FILE

KenGen Managing Director Simon Ngure attributed the increase to a Sh1.6 billion tax credit resulting from capital allowances enjoyed by the company following the completion of Sang’oro and Kindaruma power plants/FILE

NAIROBI Kenya, Oct 30 – The Kenya Electricity Generating Company (KenGen) has posted an 86 percent increase in profit after- tax in its full year results from Sh2.8 billion in 2012 to Sh5.2 billion for the year ended June 2013.

KenGen Managing Director Simon Ngure attributed the increase to a Sh1.6 billion tax credit resulting from capital allowances enjoyed by the company following the completion of Sang’oro and Kindaruma power plants.

Ngure announced that their assets base grew by 16 percent to Sh188.6 million from Sh163 million in the previous year attributed to development projects namely Geothermal Wellheads – 65MegaWatts(MW), Olkaria 1 and IV power plants – 280 MW and drilling of 80 wells for the 560MW projects.

“Non-current liabilities increased from Sh77.9 billion to Sh96.8 billion due to new loans received for Olkaria 1 and IV, drilling of the 80 wells project and Rigs,” he said.

He said that cash balances increased by 81 percent from Sh436 million to Sh3.9 billion due to funds received from financiers of the ongoing Olkaria Geothermal 280 MW project.

Revenue grew by four percent from Sh15.8 billion recorded in 2012 to Sh16.4 billion in the year to June 2013 driven by growth in consumption due to increased urbanisation and industrial use.

Ngure said that the implementation of the flagship Olkaria I and IV 280 MW plant is on course.

“The first unit of Olkaria IV – 140MW is expected to be commissioned in December and the second Unit by March 2014,” he announced.

He says that the drilling of 80 wells for the 560MW geothermal power projects is also on course.

“We already have investments in drilling which are going with about Sh32.3 billion which we have secured from the China Exim Bank and we are looking at implementing this project through joint ventures,” he said.

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Profit before tax was broadly unchanged with only a 1.2 percent increase standing at Sh4.09 billion. Electricity sales grew 3.65 percent while other operating income fell 13.68 percent due to a decline in interest income.

The board proposed a final dividend of Sh0.60 unchanged from the previous period.

He says the company is now rolling out the second phase of its energy sufficiency strategy to boost production in the country.

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