Kenya’s KenGen Commits Ksh.15.5 Billion to Expand Power Infrastructure as Electricity Demand Grows

Posted on : Monday , 2nd November 2026

Kenya Electricity Generating Company PLC (KenGen) allocated KSh.15.5 billion towards power infrastructure in the fiscal year ending June 2026, marking a 14.3% increase in capital expenditure as it bolstered its generation capabilities to address the rising electricity demands of Kenya. Concurrently, the company contributed 8,975 gigawatt hours to the national grid throughout the year, fulfilling 57.2% of the country's electricity requirements. Over 90% of the electricity supplied was derived from renewable energy sources.

KenGen's Managing Director and CEO, Eng. Peter Njenga, stated: "The expanding economy of Kenya requires a reliable electricity supply, with the current peak demand reaching 2,549MW. Our investments are aimed at ensuring the reliability of existing plants while also enhancing generation capacity to support businesses, households, and future development."

This investment reinforces KenGen's commitment to enhancing plant reliability, increasing generation capacity, and promoting the commercial utilization of geothermal resources through industrial investments at Olkaria, Naivasha.

During the Annual General Meeting (AGM) held on Thursday, shareholders sanctioned a first and final dividend of Ksh.0.75 per share for the financial year concluding on June 30, 2026. This payment is anticipated to occur on or around January 21, 2027, for shareholders listed on the register as of the close of business on October 29, 2026.

In comparison to the Ksh.0.90 per share distributed the previous year, this dividend reflects KenGen's strategy of enhancing investments in its assets while simultaneously decreasing its borrowings.

"We acknowledge the significance of dividends for our shareholders," stated the Board Chairman, Eng. Frank Konuche. "Additionally, we must invest in assets that will yield future earnings. It is crucial to balance shareholder returns, investments, and debt reduction to ensure the long-term viability of the business."

Revenue increased by 6.4% to Ksh.59.7 billion, while operating profit rose by 4.1% to Ksh.14.2 billion. However, profit after tax decreased by 1.2% to KSh10.35 billion, mainly due to reduced finance income as cash was allocated to capital investments. Borrowings decreased by Ksh.12.2 billion to Ksh.97.1 billion, thereby enhancing the company's financial stability as it continues to pursue further development.

KenGen's project portfolio integrates the refurbishment of existing facilities alongside initiatives for new generation and energy storage. This includes the completed rehabilitation of the Olkaria I geothermal power station, the proposed 42.5MW Seven Forks solar plant, and the redevelopment of the Gogo hydropower station.

Additionally, battery storage and the proposed elevation of the Masinga dam are included in the portfolio, which aims to enhance the electricity system and optimize water management for hydropower generation. In addition to supplying the grid, KenGen is striving to leverage geothermal resources as a cornerstone for industrial development.

KenGen is also broadening its commercial consultancy services as part of its G2G 2034 Strategy. The technical services offered encompass geothermal drilling, resource assessment, engineering, and the operation and maintenance of power plants, thereby creating avenues to diversify revenue streams beyond electricity sales.

"Our duty is to convert Kenya's energy resources into enduring economic value," stated Eng. Njenga, who further emphasized, "This entails providing reliable power, executing commercially viable projects, and establishing a business capable of delivering sustained returns for shareholders over time."

This investment initiative coincides with the company's preparations for a leadership transition. Ronoh Kibet Charles, who currently serves as the General Manager for Commercial Services, is set to take over from Eng. Njenga as Managing Director and CEO on February 1, 2027. The transition phase allows for a systematic handover as KenGen progresses with its generation projects, industrial development, and technical services operations.

These focal points position the reliable supply of electricity at the heart of a comprehensive commercial strategy: addressing Kenya's energy requirements while simultaneously cultivating new avenues for long-term value derived from its resources, assets, and expertise.