KenGen spends Sh15.5bn on power infrastructure

In Kenya, the year-to-date power infrastructure spending by KenGen reached Sh15.5 billion, a 14.3 percent increase compared to the prior year. This investment surge coincided with a 6.4 percent growth in revenue, reaching Sh59.7 billion, and a 4.1 percent rise in operating profit, now at Sh14.2 billion. However, the company's net profit after tax saw a slight decline of 1.2 percent, settling at Sh10.35 billion.

The reduction in net profit was primarily due to lower interest income following significant investments. KenGen generated 8,975 gigawatt hours of electricity for the national grid, satisfying 57.2 percent of the nation's demand. Over 90 percent of the generated electricity came from renewable sources. The company is focusing on expanding its existing power plants while building new generation capacity to accommodate the rising demand.

The peak electricity demand in Kenya is currently at 2,549 megawatts. KenGen is also cutting its borrowings by Sh12.2 billion, leaving a total debt of Sh97.1 billion. Managing Director and Chief Executive Peter Njenga stated that the company is investing in enhancing its power plants and developing new generation capacity to meet the growing demand.

Shareholders have approved a dividend of Sh0.75 per share for the current financial year, down from Sh0.90 paid out in the previous year. The dividend payment is expected to be distributed on January 21, 2027, to shareholders registered as of October 29, 2026. KenGen's ongoing projects include the rehabilitation of Olkaria I geothermal power station, a proposed 42.5-megawatt solar plant at Seven Forks, and plans to revamp the Gogo hydropower station.

The company is also contemplating battery storage and the redevelopment of the Masinga Dam. Additionally, KenGen aims to attract manufacturers and other businesses to its Green Energy Park in Olkaria, Naivasha, which has obtained special economic zone status to encourage industrial investment. The park will offer businesses access to geothermal electricity, steam, and industrial land.

KenGen is also expanding its technical services, such as geothermal drilling, resource assessment, engineering, and power plant maintenance. These investment initiatives are set to take place amid a leadership transition, with Ronoh Kibet Charles, KenGen's general manager for commercial services, set to assume the role of managing director and chief executive on February 1, 2027, succeeding Njenga.