KenGen announces 13 billion profit before tax, June 2020

Jan, 28th 2021 – One of Kenya’s leading energy producers, KenGen, has announced a sh13.9 Billion profit before tax for the Financial year ended in June 2020. This means that an 8.3 percent growth in profit has been seen from the previous financial year where the company announced sh11.6 billion profit before tax.

According to a statement by KenGen, the increase has been contributed mainly by additional contribution by the 165MW Olkaria V geothermal power plant which proceeds from the ongoing geothermal drilling project in Ethiopia.

According to the Managing Director and CEO Mrs. Rebecca Miano, the growth reported in electricity revenue is 13.4 percent. She said, “We reported a 13.4 percent growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14 percent.”

Recently, the company made a dividend layout of sh 1.65 billion to its shareholders. The Board has however recommended a sh0.30 first and final dividend for the year per ordinary share of sh2.50. This will be presented during the upcoming Annual General Meeting (AGM) for approval.

Similarly, their profit after tax improved from sh7.88 billion to sh18.4 billion. This, according to the company, has been attributed to a sh8.1 billion reduction in the corporate tax rate to 25 percent from 30 percent as per the Government’s relief measures to support companies during the pandemic. Mrs. Rebecca said, “We appreciate the support provided by the Government during this unprecedented time to enable us to continue providing electricity as an essential service.”

She noted that in response to the pandemic, KenGen continued to perform business continuity measures to minimize the effect of the pandemic on operations to ensure continued production of electricity.

Mrs. Miano on operating expenses for the year that ended in June 2020 compared to the previous year, said in a statement, “We continue to optimize operating costs by leveraging on digital transformation.”

According to the statement, Mrs. Miano said the company would also continue implementing its Corporate Strategy to ensure sustainable power growth in the country, while leveraging on innovation and partnerships for continued business growth and diversification.

She said, “In the year ahead, we aim to deliver Olkaria I Unit 6 geothermal power plant, which will add 83.3MW to the national grid, and continue with our diversification strategy focusing on consultancies, operations and maintenance services, training, and the operationalization of materials testing laboratory and electronic instruments calibration center.”

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