Kenya Electricity Generating Company's (KenGen) profit after tax reduced by 9.2 percent to Kes 2.9 billion in the six months to December 2023 compared to Kes 3.3 billion posted in a similar period in 2022.
The company attributed the drop to increased tax expenses and foreign exchange losses.
Further, KenGen says that tax expenses went up by 25.7 percent, from Kes 1.48 billion to Kes 1.8 billion.
Its operating costs also grew by 16.4 percent on higher plant operating and maintenance costs, stemming from global macroeconomic pressure.
However, Improved hydrology and heightened plant efficiency boosted net revenue to Kes 24.7 billion, an 8.4 percent jump.
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KenGen Managing Director and CEO Peter Njenga says the operational environment for the aforementioned period was characterized by heavy rainfall that led to an increase in water levels within their hydro dams thus boosting hydro generation by a remarkable 7%.
“This substantial boost in hydro-generation played a key role in mitigating the high fuel costs associated with thermal generation, which saw a commendable dip of 3.5%.”
KenGen maintains a positive outlook, underscoring the escalating national demand for clean electric energy, including rehabilitating the Olkaria I geothermal power plant, which KenGen says is well on schedule.
