Kengen has reported a 20 per cent drop in net profit to Sh4.2 billion for the half year period to December 31, 2025 due to lower finance income and higher income tax expense.
The company reported a net profit of Sh5.3 billion in the half year period to December 31, 2024.
Revenue jumped 9 per cent to Sh30.1 billion from Sh27.5 billion on account of higher grid demand. Electricity sales rose by 4 per cent to 4,461GWh from 4,299GWh a year earlier.
Operating expenses jumped 7.4 per cent to Sh19 billion driven by higher depreciation expense and high plant operating and steam costs.
Operating profit rose 6.4 per cent to Sh7.1 billion from Sh6.6 billion a year earlier, as revenue growth outpaced the increase in costs
Finance income dropped from Sh2.4 billion to Sh1.5 billion due to lower prevailing market interest rates. Finance costs dropped marginally by Sh125 million as the company continued its debt repayments.
The board did not recommend the payment of an interim dividend.
Kengen is implementing projects with a combined pipeline capacity of about 253 MW, including the 63 MW Olkaria I Rehabilitation Project scheduled for commissioning by end of 2026, the 42.5 MW Seven Forks Solar Project, the 80 MW Olkaria VII Project, 58.42 MW of well head generation through leasing arrangements and the Gogo Hydropower Upgrade, which will increase capacity from 2 MW to 8.5 MW.
In addition, the company is advancing a 200MWh Battery Energy Storage System (BESS) to support energy storage and grid capacity as well as Raising of Masing Dam Project to improve hydropower availability.
Kengen reported a 20% drop in half year profits to Sh4.2 billion for the period ended December 31, 2025. —Revenue: +9% to Sh30.1bn —Operating Profit: +6.4% to Sh7.1bn —PAT: -20% to Sh4.2bn —EPS: -20% to Sh0.64 —No interim dividend
