KenGen PLC (NSE:$KEGN) recorded a 20% decline in after-tax profit to KES 4.2 billion for the six months ended December 31, 2025 compared to KES 5.3 billion recorded in a corresponding period in 2024, attributable to cost pressures, weak finance income and higher taxes.
Total revenue reached KES 30.1 billion, up 9.4% from KES 27.5 billion in HY 2024/2025, driven by improved plant availability, stronger operational performance and higher grid demand. During the review period, KenGen generated 7,805 GWh of electricity, up 8.3% from 7,210 GWh in December 2024. The power producer’s dispatch increased by 4% to 4,461 GWh while peak demand reached 2,439.06 MW.
Operating Expenses (OpEx) inched up by 7.4% to KES 19 billion mainly due to higher depreciation expenses arising from additional asset capitalization, as well as increased plant operating and steam costs. OpEx as a share of revenue stood at 63.2% in HY 2025/2026 as compared to 64.4% in HY 2024/2025.
Finance income plunged 37.3% to KES 1.53 billion from KES 2.45 billion in the previous period, attributable to lower interest rates. Finance costs declined by KES 125 million to KES 1.01 billion as the firm continued to reduce its debt levels.
The Nairobi Securities Exchange(NSE) – listed firm (NSE: $KEGN) posted a profit before tax of KES 7.6 billion, down 5.0% from KES 8 billion. A 26% year-on-year surge in income tax to KES 3.4 billion weighed on the company’s net earnings.
KenGen Infrastructure Drive
KenGen continues to implement a pipeline of projects aimed at enhancing grid stability, supporting industrial growth, improving system reliability and advancing Kenya’s clean energy transition.
Key projects include the 63 MW Olkaria I Rehabilitation project, 42.5 MW Seven Forks Solar Project, the 80 MW Olkaria V11 Project, 58.42 MW of wellhead generation through leasing arrangements and the Gogo Hydropower Upgrade that is set to increase capacity to 8.6MW from 2MW.
Additionally, a 200 MWh Battery Energy Storage System (BESS) is under development to support energy storage alongside the Masinga Dam Raising Project.
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