KenGen invests KSh15.5 billion in power infrastructure as Kenya’s electricity demand rises

NAIROBI, Thursday, October 29, 2026: Kenya Electricity Generating Company PLC (KenGen) invested KSh.15.5 billion in power infrastructure in the year to June 2026, increasing capital spending by 14.3% as it strengthened its generation business to meet Kenya’s growing electricity needs.

At the same time, the company supplied 8,975 gigawatt hours to the national grid during the year, meeting 57.2% of national electricity demand. More than 90% of the electricity it dispatched came from renewable sources.

KenGen Managing Director and CEO, Eng. Peter Njenga said: “Kenya’s growing economy needs dependable electricity which to date the peak demand is 2,549MW. Our investment is focused on keeping existing plants reliable while developing the generation capacity needed to support businesses, households and future growth.”

The investment underpins KenGen’s efforts to improve plant reliability, develop additional generation and expand the commercial use of geothermal resources through industrial investment at Olkaria, Naivasha.

At the company’s Annual General Meeting (AGM) on Thursday, shareholders approved a first and final dividend of Ksh.0.75 a share for the financial year ended June 30, 2026. The payment is expected on or about January 21, 2027, to shareholders on the register at the close of business on October 29, 2026.

The dividend, compared with Ksh.0.90 a share the previous year, comes as KenGen increases investment in its assets while reducing borrowings.

“We recognise the importance of dividends to our shareholders,” said the Board Chairman, Eng. Frank Konuche. “We also have to invest in the assets that will generate future earnings. Balancing shareholder returns, investment and debt reduction is essential to the long-term strength of the business.”

Revenue rose 6.4% to Ksh.59.7 billion, while operating profit increased 4.1% to Ksh.14.2 billion Profit after tax declined 1.2% to KSh10.35bn, primarily reflecting lower finance income as cash was deployed into capital investment.

Borrowings fell by Ksh.12.2 billion to Ksh.97.1 billion, strengthening the company’s financial position as it pursues further development.

KenGen’s project portfolio combines the rehabilitation of existing plants with plans for new generation and energy storage. It includes the rehabilitation of Olkaria I geothermal power station which has since been completed, the proposed 42.5MW Seven Forks solar plant and the redevelopment of Gogo hydropower station.

Battery storage and the proposed raising of Masinga dam also form part of the portfolio, supporting plans to strengthen the electricity system and improve water management for hydropower generation.Beyond supplying the grid, KenGen is seeking to turn geothermal resources into a foundation for industrial growth.

Its Green Energy Park at Olkaria is designed to bring manufacturing and other businesses closer to geothermal electricity and steam. Target industries include food processing, manufacturing and data centres, creating opportunities to connect clean energy with productive investment.

“Geothermal energy can do more than supply electricity to the grid,” Eng. Njenga said. “At Olkaria, we are bringing together energy, steam and industrial land to attract businesses that can create jobs and strengthen Kenya’s manufacturing base.”

The park has secured special economic zone status and designation as a customs-controlled area, establishing a framework for attracting investors and developing industrial projects.

KenGen is also expanding the commercial consultancies under its G2G 2034 Strategy. Its technical services include geothermal drilling, resource assessment, engineering, and power plant operation and maintenance, providing opportunities to diversify revenue beyond electricity sales.

“Our responsibility is to turn Kenya’s energy resources into lasting economic value,” Eng. Njenga said adding, “That means reliable power, commercially sound projects and a business that can sustain returns for shareholders over time.”

The investment programme comes as the company prepares for a leadership transition. Ronoh Kibet Charles, currently General Manager for Commercial Services, will succeed Eng. Njenga as Managing Director and CEO on February 1, 2027.

The transition period provides for an orderly handover as KenGen advances its generation projects, industrial development and technical services businesses.

These priorities place reliable electricity supply at the centre of a broader commercial strategy: meeting Kenya’s energy needs while developing new sources of long-term value from its resources, assets and expertise.