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Kenya Electricity Generating Company (KenGen) has announced a 54 percent jump in its after-tax profit for the financial year ending June 30, 2025, driven by operational efficiency, cost optimization, and increased power generation from its diversified energy portfolio.
The power producer’s profit after tax rose to Sh10.48 billion, up from Sh6.8 billion recorded in 2024. Profit before tax also climbed 42 percent to Sh15.47 billion, underscoring the company’s strong financial performance.
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KenGen Managing Director and CEO Peter Njenga attributed the growth to strategic management and sustainability efforts.
“Our performance this year demonstrates the strength of our strategy and our commitment to clean, reliable, and affordable energy. As we build on this momentum, we remain focused on powering Kenya’s future sustainably,” he said.
KenGen, which provides the cheapest electricity to Kenya Power, continues to cushion consumers against high electricity costs caused by expensive power purchase agreements (PPAs) signed with Independent Power Producers (IPPs).
Revenue from non-traditional business ventures—including geothermal consultancy projects such as the recently completed Eswatini project—grew by 235 percent, highlighting KenGen’s successful diversification.
Total revenue for the year stood at Sh56.1 billion, while operating expenses dropped by 11 percent to Sh35.14 billion, driven by lower depreciation charges and cost-cutting measures.
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The firm also reported Sh1.45 billion in net foreign exchange and fair value gains, a sharp turnaround from a Sh722 million loss the previous year, thanks to a stabilizing shilling. Finance costs declined by 20 percent to Sh2.25 billion, supported by steady loan repayments and reduced debt.
KenGen’s total assets increased to Sh505.6 billion, up from Sh491.3 billion, while shareholders’ equity rose to Sh284.5 billion. The company ended the year with Sh30.1 billion in cash reserves, compared to Sh25.6 billion in 2024.
Operationally, the firm maintained robust performance amid rising national energy demand. Kenya’s peak electricity demand reached a record 2,392 MW in August 2025, a 5 percent year-on-year growth.
KenGen generated 8,482 GWh of electricity—1 percent higher than in 2024—from its 1,786 MW installed capacity spanning geothermal, hydro, wind, and thermal sources.
Looking ahead, the company reaffirmed its focus on executing its G2G 2034 Strategy, aimed at accelerating renewable energy development and diversifying income sources.
KenGen’s upcoming projects include the 63MW Olkaria I, 42.5MW Seven Forks Solar, and the 8.6MW Gogo Hydro upgrade, totaling 253 MW. It is also expanding regionally with the Ngozi Geothermal Project in Tanzania.
“KenGen’s leadership in renewable energy and commitment to innovation remain central to our mission. We’re not just generating power—we’re shaping a greener, more sustainable future for Kenya and the region,” Njenga said.
KenGen remains the leading electricity producer in Eastern Africa, commanding over 60 percent of Kenya’s total generation capacity, and continues to prioritize safe, sustainable, and affordable energy solutions for national growth.
