KenGen And Kenya Power Post Strong Profit Growth On Renewable Energy Push

Kenya’s primary energy utilities, Kenya Electricity Generating Company (KenGen) and Kenya Power, have reported strong growth in energy output and financial performance, signaling a major boost for the country’s power sector. The improved results reflect a steady shift toward renewable energy and better operational management.

KenGen, the country’s main electricity producer, recorded a 54 percent rise in profit after tax to KSh 10.48 billion for the financial year ending June 2025. This follows a 35 percent profit increase in 2024, showing consistent growth over two years. The company’s performance is supported by its strong renewable energy base. More than 90 percent of its 1,786 MW installed capacity comes from green sources, mainly geothermal and hydropower. Good rainfall during the year increased hydropower generation, while geothermal plants continued to provide stable and reliable electricity to the national grid.

Apart from power generation, KenGen is also expanding into new revenue areas. The company is offering geothermal consultancy services to other African countries and is developing a Green Energy Park to support clean energy investments.

On the distribution side, Kenya Power has also shown a strong recovery. The utility posted a pre-tax profit of KSh 14.83 billion for the first half of the 2025/2026 financial year. This marks a significant turnaround compared to previous years. The improvement was driven by a 10.5 percent increase in electricity sales and better efficiency in power distribution. The stronger Kenyan shilling helped reduce the cost of servicing foreign loans and lowered expenses related to power purchases.

Electricity demand has grown due to Kenya’s expanding economy, especially in the industrial and infrastructure sectors. The rapid growth of electric vehicles has also contributed to higher electricity use, with power consumption for EV charging nearly tripling within a year.

Looking ahead, KenGen plans to add 1,500 MW of new capacity by 2034, while Kenya Power is investing in grid modernization and loss reduction programs. The latest results highlight Kenya’s progress in building a cleaner, more reliable, and financially sustainable energy sector.