KenGen’s Remarkable Half-Year Profit Growth: A Testament to Geothermal Energy's Potential
By: Robert Buluma
In a groundbreaking financial report released on February 6, 2025, the Kenya Electricity Generating Company (KenGen) PLC announced a remarkable 79% growth in its half-year profit. This milestone underscores KenGen's resilience and leadership in the energy sector, particularly its commitment to renewable energy, with geothermal energy taking center stage.
Driving Growth Through Geothermal Energy
Given that Kenya is geographically located in the Great Rift Valley geothermal well endowed section of the world it is much easier For the country to surpass the 1 GW geothermal mark and even disrupt the global geothermal market.
Give that companies like Kengen are the main pivots in this field
KenGen’s net profit soared to Ksh.5.30 billion from Ksh.2.96 billion in the same period last year. This impressive growth was driven by cost optimization and operational efficiencies. As East Africa’s largest electricity producer, KenGen continues to champion Kenya’s renewable energy transition.
Notably, the company generated 4,291 GWh of electricity during the period, up from 4,211 GWh in the previous cycle. A significant portion of this power was derived from geothermal energy, cementing KenGen’s role as a steward of Kenya’s abundant geothermal resources.
Geothermal Energy: Kenya’s Green Energy Powerhouse
Kenya sits atop one of the world's richest geothermal belts, the East African Rift Valley. KenGen’s geothermal plants, which boast an installed capacity of 754 MW, are a critical pillar of the nation’s clean energy agenda. The company’s G2G 2034 Strategy aims to further expand its renewable energy portfolio, including geothermal, hydro, and solar projects.
Between 2025 and 2027, KenGen plans to add 194.4 MW of installed capacity, alongside 100 MWh of battery storage to enhance grid stability. Geothermal energy will undoubtedly play a leading role in these expansion efforts, given its reliability and sustainability compared to other renewable sources.
The Financial Discipline Behind the Growth
KenGen’s success is not just about resource management but also financial acumen. The company reduced operating expenses by 13.7%, while finance income rose to Ksh.2.45 billion due to higher returns on cash investments and a stable Kenyan shilling.
“We are optimizing our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country,” said Eng. Peter Njenga, KenGen's Managing Director and CEO.
Shaping Africa’s Energy Future
KenGen’s strategic focus on geothermal energy positions it as a key player in Africa’s clean energy transition. By leveraging its geothermal expertise, the company is setting a benchmark for other nations seeking sustainable energy solutions.
The company's refusal to declare an interim dividend signals a commitment to reinvestment and long-term growth. With a strong balance sheet and a clear vision, KenGen is primed to be a catalyst in shaping Africa's energy future.
A Call to Action for Geothermal Development
As KenGen demonstrates the immense potential of geothermal energy, it is essential for stakeholders, investors, and governments to support further exploration and development. With Kenya already a leader in geothermal energy, continued investment could unlock even greater economic and environmental benefits.
KenGen’s remarkable profit growth is not just a financial victory but a testament to the transformative power of geothermal energy. By harnessing this untapped resource, Kenya is lighting the path toward a greener, more sustainable future for Africa and beyond.
For media inquiries, please contact:
Frank D. Ochieng
Tel: 0721816896
Email: fochieng@kengen.co.ke
KenGen Pension Plaza II, Kolobot Road, Parklands, Nairobi
P.O. BOX 47936, 00100
Tel: +254 711 036-000
Email: pr@kengen.co.ke
Source:KenGen
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