Kenya Electricity Generating Company PLC (KenGen) has invested KSh.15.5 billion in power infrastructure in the year to June 2026, a 14.3% increase in capital spending. This investment aims to improve plant reliability and meet Kenya's growing electricity needs. The company's efforts focus on keeping existing plants reliable while developing the generation capacity needed to support businesses, households, and future growth. Kenya's peak demand currently stands at 2,549MW.
During the year, KenGen supplied 8,975 gigawatt hours to the national grid, meeting 57.2% of national electricity demand. More than 90% of the electricity it dispatched came from renewable sources. The company's Managing Director and CEO, Eng. Peter Njenga, emphasized the importance of dependable electricity for Kenya's growing economy. He stated that the investment is crucial for supporting businesses, households, and future growth.
The investment underpins KenGen's efforts to improve plant reliability, develop additional generation, and expand the commercial use of geothermal resources through industrial investment at Olkaria, Naivasha. The company's project portfolio combines the rehabilitation of existing plants with plans for new generation and energy storage. This includes the rehabilitation of Olkaria I geothermal power station, the proposed 42.5MW Seven Forks solar plant, and the redevelopment of Gogo hydropower station.
At the company's Annual General Meeting (AGM), shareholders approved a first and final dividend of Ksh.0.75 a share for the financial year ended June 30, 2026. The payment is expected on or about January 21, 2027, to shareholders on the register at the close of business on October 29, 2026. The dividend comes as KenGen increases investment in its assets while reducing borrowings.
KenGen's financial performance for the year showed a 6.4% rise in revenue to Ksh.59.7 billion, while operating profit increased 4.1% to Ksh.14.2 billion. However, profit after tax declined 1.2% to KSh10.35bn, primarily reflecting lower finance income as cash was deployed into capital investment. Borrowings fell by Ksh.12.2 billion to Ksh.97.1 billion, strengthening the company's financial position.
Beyond supplying the grid, KenGen is seeking to turn geothermal resources into a foundation for industrial growth. Its Green Energy Park at Olkaria is designed to bring manufacturing and other businesses closer to geothermal electricity and steam. The park has secured special economic zone status and designation as a customs-controlled area, establishing a framework for attracting investors and developing industrial projects.
KenGen is also expanding its commercial consultancies under its G2G 2034 Strategy. The company's technical services include geothermal drilling, resource assessment, engineering, and power plant operation and maintenance. A leadership transition is underway, with Ronoh Kibet Charles set to succeed Eng. Njenga as Managing Director and CEO on February 1, 2027. The transition period provides for an orderly handover as KenGen advances its generation projects, industrial development, and technical services businesses.
Key points
- KenGen invested KSh.15.5 billion in power infrastructure in the year to June 2026.
- The company supplied 8,975 gigawatt hours to the national grid, meeting 57.2% of national electricity demand.
- More than 90% of the electricity dispatched by KenGen came from renewable sources.
