• KenGen increased its profit after tax by 54% to KES 10.48 billion ($81 million).

• More than 90% of its 1,786 MW installed capacity comes from renewable sources.

• Shareholders approved a higher dividend of KES 0.90 per share, up from KES 0.65 in 2024.

Kenya’s state-owned power producer KenGen continues to outperform many African public utilities, supported by a business model built on locally generated renewable energy.

An assessment of KenGen’s financial year ending 30 June 2025 shows that the utility delivered a significant improvement in results. The company increased its profit after tax by 54% to KES 10.48 billion (about $81 million). Shareholders approved a dividend of KES 0.90 per share on Thursday, 4 December, compared with KES 0.65 in 2024, which confirms a marked improvement in performance.

KenGen’s energy mix underpins this momentum. The company operates 1,786 MW of installed capacity, and more than 90% comes from renewable sources, including 826 MW of hydropower and 754 MW of geothermal. This portfolio stabilizes costs and ensures steady generation for the national grid. Revenue from regional geothermal supply also strengthens profitability. KenGen plans to add new capacity, including solar, and to modernize several sites to maintain its trajectory.

This model contrasts with the performance of many sub-Saharan African utilities. The International Energy Agency’s “Financing Electricity Access in Africa” report, published in October 2025, states that public power companies in the region often operate with margins below 5%, which limits their ability to expand electrification. These utilities face low consumption levels among new customers and insufficient collection rates, sometimes covering less than 60% of declared costs in 2025.

These structural constraints generate losses and push governments to absorb deficits through subsidies or guarantees, which increases public debt. The IEA notes that during Zambia’s restructuring with the IMF in 2022, state-owned Zesco carried the largest external debt among public enterprises. KenGen’s example shows that a renewable-heavy generation mix, combined with disciplined management and profitable complementary activities, can strengthen financial stability and expand electricity access for a public utility in sub-Saharan Africa.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange Jason Quenum