Kenya Electricity Generating Company or KenGen, has reported a KSh 5.12 billion net profit for the half-year ended December 2021 compared to KSh 5.05 billion reported in the same period in 2020 attributed to increased electricity sales and diverse revenue streams.
The electricity generating company attributed the slow growth in profits to increased expenses which were owed to increased business activities in Ethiopia, repairs and maintenance, and higher steam costs following increased dispatch from its Olkaria geothermal plants.
Consequently, operating costs increased to KSh14.1 billion during the period ended 31st December 2021 as compared to KSh13.1 billion posted during a similar period in 2020.
Meanwhile, KenGen’s total revenues were up by 14 percent at KSh24.8 billion from KSh21.8 billion.
In June last year, KenGen which currently produces 65% of Kenya’s electricity generation capacity announced its started the drilling of the second geothermal well for Ethiopia Electric Power (EPP) in a contract valued at Ksh 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 Ksh14.1 billion from Ksh13.1 billion.