Kenya’s largest electricity generator KenGen has reported a 9% increase in profit before tax of Kshs. 7.5 billion for the half-year period ended December 31, 2021.
The gross profit which has risen from Kshs. 6.9 billion recorded during a similar period in 2020 is attributed to increased electricity sales and diverse revenue streams.
“Our performance for the six months ended 31st December 2021 remained stable supported by increased income from revenue diversification initiatives and overall growth in electricity demand,” said KenGen in it is financial report.
During the period under review, total revenue increased 14% from Kshs. 21.8 billion to Kshs. 24.8 billion.
“This growth is mainly attributed to higher revenue receipts from drilling consultancy operations outside Kenya,” said KenGen.
In June last year, KenGen which currently produces 65% of Kenya’s electricity generation capacity announced its commenced the drilling of the first geothermal well for Ethiopia Electric Power (EPP) in a contract valued at Kshs. 7.6 billion.
Subsequently, the drilling of the Ethiopian well coupled with repairs and maintenance and higher steam cots from Olkaria 1 AU and Olkaria V geothermal plants had an impact on the firm’s operating cost which surged 8% to Kshs. 14.1 billion from Kshs. 13.1 billion.
The board of Directors have not recommended an interim dividend.
