KenGen: Powering Kenya’s Green Energy Future

KenGen: Powering Kenya’s Green Energy Future

As Kenya’s largest electricity producer, Kenya Electricity Generating Company PLC (KenGen) is driving the nation’s green energy revolution with a focus on sustainable development. By tapping into diverse renewable and clean energy sources—including geothermal, hydroelectric, wind, and thermal—KenGen is not only powering Kenya’s homes and industries but is also setting a benchmark for renewable energy across East Africa. Through ambitious projects and innovative strategies, KenGen is redefining Kenya’s energy landscape, fostering economic growth, and championing environmental sustainability.

LIDA Network’s site visit to Kenya Electricity Generating Company (KenGen) in Olkaria geothermal power plant in Naivasha, Kenya.

 Since its inception in 1954, KenGen has become the country’s primary power producer, supplying over 60% of Kenya’s electricity. Initially focused on hydroelectric power, KenGen has diversified over the years, now generating electricity through geothermal, wind, and thermal energy as well. The company’s energy mix reflects its commitment to sustainability and aligns with Kenya’s Vision 2030 development blueprint, which prioritizes clean energy sources for a secure, sustainable future. LIDA Network paid a visit among other journalists representing media agencies across Africa.

KenGen’s energy portfolio is among the most diversified in Africa, with geothermal energy at 43.7% (754 MW), hydroelectric at 47.9% (826 MW), wind at 0.71% (25.5 MW), and thermal at 7% (120 MW), bringing its total installed capacity to nearly 1,904 MW. By prioritizing geothermal energy, KenGen has positioned Kenya as one of Africa’s leaders in geothermal power, which is recognized globally for its efficiency and renewable nature. 

KenGen operates several critical power plants in East Africa, including the Olkaria Geothermal Complex, Africa’s largest geothermal facility, located in Naivasha with a capacity exceeding 700 MW. This facility has garnered international attention for its advanced geothermal technology. Additionally, the Gitaru Hydroelectric Power Station on the Tana River supplies 225 MW, while the Kipevu Thermal Power Plant in Mombasa provides 60 MW as a backup during seasonal dips in hydroelectric output. KenGen’s strategic use of these facilities strengthens Kenya’s energy security and resilience.

With around 86% of its electricity derived from renewable and clean energy sources, KenGen has cemented Kenya’s position as a regional leader in sustainable energy. The company actively supports environmental initiatives, including reforestation programs and environmental education efforts, to minimize its carbon footprint. These initiatives contribute to Kenya’s alignment with the Paris Agreement and the United Nations Sustainable Development Goals, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

KenGen’s economic contributions to Kenya extend well beyond electricity generation, positioning it as a pillar of national economic development. By creating jobs, supporting entrepreneurship, and investing in essential infrastructure, KenGen has cemented itself as a cornerstone of Kenya’s economic landscape. With the Kenyan government holding a 70% stake and private investors owning 30%, KenGen leverages this structure to reinvest in transformative projects that foster the nation’s sustainable growth.

In a significant financial milestone, KenGen recently reported a 35% surge in profit after tax for the fiscal year ending June 30, 2024, reaching Ksh.6.8 billion—an increase from Ksh.5 billion the previous year. This growth was fueled by strong revenues from geothermal and hydroelectric power, underscoring KenGen’s strategic focus on renewables. Additionally, finance income skyrocketed by 149% to Ksh.4.2 billion, up from 1.7 billion in 2023, further enhancing the company’s robust financial position amid economic volatility.

Beyond energy, KenGen is committed to supporting local communities through its KenGen Foundation. 

The KenGen Foundation focuses on two core pillars—education and environmental sustainability—funding initiatives that improve access to education, and water supply, enhancing the quality of life for communities near its facilities.

KenGen’s strategy aligns with Kenya’s Vision 2030, which aims to transform Kenya into a middle-income country with reliable, sustainable energy. By continuing to innovate and grow, KenGen is not only driving economic progress and environmental protection in Kenya but is also setting a standard for renewable energy in Africa. As it addresses current challenges, invests in advanced technologies, and impacts communities positively, KenGen is lighting the way for a sustainable future in Kenya and across the continent.

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