This archive report was first published on 1 November 2021.
Kenya Electricity Generating Company Plc (KenGen) has released its full-year results for the financial year ended 30th June 2021, revealing a significant decline in net earnings.
According to the report, KenGen's net earnings dropped by 94.6% to KSh 1.2 billion in 2021, compared to KSh 18.4 billion in 2020. This decline is attributed to the reversal of COVID-19 mitigation tax measures put in place by the Government.
The corporate tax rate was reduced from 30% to 25% in 2020 but reverted back to 30% in 2021, resulting in a tax expense of KSh 8.794 billion on deferred tax compared to a credit of KSh 8.145 million in 2020. This contributed significantly to the high tax expense of KSh 13.574 billion, up from the previous year's tax credit of KSh 4.587 billion.
Despite the decline in net earnings, KenGen recorded a 7% increase in pre-tax profit from KSh 13.8 billion in 2020 to KSh 14.8 billion in 2021.
The KenGen Board has recommended a first and final dividend of KSh 0.30 per ordinary share, amounting to KSh 1,978 million, the same as the amount paid out in 2020.
KenGen aims to deliver the Olkaria I Unit 6 geothermal power plant, which will add 83MW to the national grid by the end of December 2021. The company also aims to progress the milestones towards the commencement of the 140MW Olkaria VI geothermal power plant through a Public-Private Partnership.
As of today, KenGen PLC has an installed generation capacity of 1,818MW, with over 86% drawn from green sources, including hydro (826MW), geothermal (713MW), thermal (253MW), and wind (26MW).
