Kenya Electricity Generating Company Expansion Strategy

Kenya Electricity Generating Company Expansion Strategy

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Kenya Electricity Generating Company Expansion Strategy

Summary: The Kenya Electricity Generating Company (KenGen) is a state owned power producing company in Kenya. The company was formed in 2008 from its predecessor The Kenya Power, formerly known as Kenya Power and Lightening Company. It is the largest power producing company in Kenya producing more than 80% of the total Electricity consumed in the country. KenGen produces power from thermal, hydroelectric, geothermal and wind. The company is currently on its initial stages to construct a nuclear power plant in Kisumu and Mombasa.

KenGen produces power in bulk and sells to Kenya Power which distributes the power to the consumers. The company is guided by professionalism, integrity, safety culture and team spirit as its core values. Its vision is to become the market leader in provision of reliable safe quality and competitively priced energy in Eastern Africa Region. KenGen’s philosophy is to move from Good to Great Company in order to create value to the stakeholders. In the financial year ended June 2013, the company the company had an asset base of Ksh.189 billion and electricity revenue of 16.5 billion Kenya shilling. The company made a profit of Ksh. 4.09 billion before tax and the earnings per share is Ksh. 2.39. The company has a total of 24 power stations distributed country wide and the total installed capacity is 1239 MW with over 2000 qualified and self motivated employees (www.kengen.co.ke).

Executive summary: the continent Africa has the potential to produce more than 9,000 MW of power generation through hot water and geothermal resources. The formation of geothermal energy is deep within the earth’s crust and it is exploited electricity and other direct uses. Geothermal fluid is the media for this energy transfer which is manifested as hot grounds, geysers, mud pools, fumaroles and hot springs. Geothermal energy will become a major contributor to Africa’s electric power to those countries that are endowed with these resources. The energy is competitive in terms of costs and it is an attractive option compared to other fossil fuels.............