NAIROBI, Kenya, Oct 13 – The Kenya Electricity Generating Company (KenGen) has posted a 308 percent rise in its net profit to Sh11.5 billion for the financial year ended June 30, 2015 from Sh2.8 billion in 2014.
The firm attributes the growth in profitability to increased installed capacity, better performance and tax credit from capital allowances following the commissioning of the 280Megawatts (MW) Geothermal project and wellheads in Olkaria and the Ngong wind project.
Total revenue grew by 44 percent from Sh18.5 billion to Sh26.6 billion in June with geothermal contributing 46 percent, an increase of 21 percent compared to last year.
This comes as the firm shifted focus to affordable and environmental-friendly green energy sources, mainly geothermal and wind, resulting in reduced cost of power by up to 30 percent.
Installed capacity grew by 26 percent from 1,337MW in June 2014 to the current 1,611MW.
Capacity from geothermal sources increased by 99 percent from 256MW in 2014 to 509MW while wind recorded a growth of 420 percent.
“The energy sector witnessed remarkable growth in the year as our mega 280MW Olkaria project was inaugurated, adding impetus to the Government’s 5000MW campaign to expand power generation and access,” said KenGen Managing Director Albert Mugo.
Energy sales to Kenya Power increased by 15 percent from 6,084GWh to 7,020GWh mainly due to increased contribution from geothermal generation.
Increased geothermal generation has significantly reduced reliance on hydro generation, which is vulnerable to weather conditions, from 65 percent in 2014 to 47 percent.
“With geothermal at the core of our strategy, KenGen is helping the nation achieve a transformation by increasing the quantity of power, reducing cost of electricity and ensuring regular supply,” Mugo added.
Following the completion of new plants and revaluation of existing property, plant and equipment, KenGen’s asset base grew to Sh342.5 billion as at June 2015 compared to Sh250 billion in 2014.
KenGen now plans to focus on the implementation of 511MW geothermal projects comprising the 70MW Olkaria 1 Unit 6, 140MW each for Olkaria V and VI, 75MW Wellheads and refurbishment of the old Olkaria 1 from 45MW to 50.7MW that it plans to develop in the next two to four years.
The firm also plans to implement 80MW of wind power in Meru and drill wells for the 560MW to support its target contribution of 844MW to the 5000MW government goal.