The Lower Eastern Times Opening The Third Eye
Related Articles
KenGen, a publicly traded electricity generation company, is set to finalize an agreement to drill three exploratory wells in Tanzania, as the neighboring country looks to tap into geothermal energy sources.
Peter Njenga, the Managing Director and CEO of KenGen, states that operations in Tanzania are expected to commence within the next month, aiming to bolster revenue diversification by expanding into markets beyond Kenya.
In November 2021, KenGen began drilling its first well in Djibouti, following a contract worth Sh709.0 million secured in February of the same year. Additionally, the company secured contracts for well drilling and consultancy services in Ethiopia during the same period.
Njenga highlights the company’s aggressive diversification strategy, with ongoing projects in Ethiopia, Djibouti, and potential opportunities in Malawi, Zambia, and Rwanda. The Tanzanian project, which is relatively small, is expected to be completed within three months.
KenGen aims to significantly improve its performance, targeting a net profit of Sh8.0 billion for the full year ending June 2024, a substantial increase from the Sh5.0 billion reported in June 2023.
Njenga emphasizes the company’s commitment to increasing profits, aiming to exceed Sh10 billion annually, leveraging its asset base of around Sh500 billion. KenGen’s profit after tax rose to Sh5.2 billion in the fiscal year ending June 2023, marking a 48 percent growth from Sh3.38 billion, driven by a 14 percent increase in revenues.
The company continues to focus on enhancing efficiency in power generation to boost revenue from its generators, with a target of reaching Sh10.0 billion in the next three years.
KenGen recently disbursed dividends totaling Sh545.2 million to 190,784 shareholders on February 16, following approval at the annual general meeting held last year.
