This archive report was first published on 20 December 2021.
Kenya Electricity Generating Company (KenGen) has seen a significant increase in earnings from its Ethiopian operations, with revenues quadrupling to Sh1.7 billion in the year ending June 2021.
According to the company's annual report, the costs associated with drilling wells in Tulu Moye, Ethiopia, were Sh1.3 billion. The Ethiopian operations have also led to increased expenses for staff, plant operations, and maintenance.
KenGen has been diversifying its revenue streams, moving away from solely producing electricity and selling to Kenya Power. Instead, the company is now supplying drilling services to Ethiopia and Djibouti, with plans to expand into other markets.
As part of its diversification strategy, KenGen has signed a Sh709 million contract to drill three geothermal wells in Djibouti. The company is also eyeing similar deals in Uganda, Tanzania, Djibouti, Rwanda, South Sudan, The Sudan, Zambia, and Comoros to boost revenues.
Rebecca Miano, CEO & MD of KenGen, stated, 'The plant operation and maintenance expenses increased from Sh1.5 billion to Sh1.8 billion because of expenses related to drilling in Ethiopia.'
KenGen's Ethiopian venture has been a key contributor to the company's growth, and it is expected to continue playing a significant role in the company's future plans.
