Kenya Electricity Generating Company (KenGen) recorded a slight decline in net profit to Sh10.35 billion for the financial year ended June 30, 2026, as lower finance income weighed on the power producer’s earnings.
The profit declined from Sh10.48 billion recorded in the previous financial year, representing a modest reduction despite the company making progress in managing its financing costs and reducing its overall borrowings.
KenGen said finance income fell significantly during the year, dropping from Sh4.1 billion to Sh2.9 billion.
The reduction in finance income was the main factor behind the decline in profitability, coming at a time when the electricity generator continued to focus on strengthening its balance sheet and managing its debt obligations.
Despite the lower finance income, KenGen reduced its finance costs by 12.1 per cent to Sh2 billion through capital and debt management measures.
The company’s total borrowings also declined by Sh12.2 billion to Sh97.1 billion during the year, pointing to continued efforts to reduce its debt burden and improve its financial position.
The reduction in borrowing comes as KenGen prepares to invest in additional electricity generation capacity to respond to rising demand for power across the country.
KenGen Managing Director and Chief Executive Officer Peter Njenga said electricity demand continued to increase, with national peak demand reaching a record 2,549 megawatts (MW) on July 15, 2026.
“Record electricity demand is a powerful signal of a growing and increasingly connected economy,” Njenga said.
The record demand highlights the growing need for additional generation capacity as more households, businesses and industries connect to the national electricity system.
Njenga said KenGen would focus on expanding generation capacity while strengthening the electricity system to ensure the country can meet increasing demand.
The company remains a major source of electricity for the national grid, particularly through renewable energy generation.
During the financial year, KenGen supplied 8,975 gigawatt hours (GWh) of electricity to the national grid, accounting for 57.2 per cent of total electricity supplied to the grid.
More than 90 per cent of the electricity dispatched by the company came from renewable sources, mainly geothermal and hydropower.
The high proportion of renewable generation underlines KenGen’s central role in Kenya’s transition towards a cleaner electricity system and reduced reliance on fossil-fuel-based power generation.
Geothermal energy remains particularly important to Kenya’s electricity supply because it provides relatively stable baseload power and is less exposed to weather variations than hydropower.
Hydropower also continues to contribute significantly to the national grid, although its output can be affected by changes in rainfall and water levels in major reservoirs.
KenGen’s strong contribution to the national grid comes against the backdrop of steadily rising electricity consumption as economic activity expands and more Kenyans gain access to electricity.
The record peak demand of 2,549MW signals the increasing pressure on the country’s generation and transmission infrastructure and the need for continued investment across the electricity value chain.
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