KenGen half-year net profits drop 3pc as it replaces chairman
Abraham Serem, chief executive of the Kenya Electricity Generating Company (KenGen), during a media briefing at the company's headquarters in Nairobi on January 6, 2022.
KenGen has posted a 3.2 per cent profit drop for its half-year ended December 2022, attributed to higher operating costs, even as the listed firm appointed a new chairman.
The company listed on the Nairobi Securities Exchange (NSE) earned a profit after tax of Sh3.25 billion in the six-month, down from the Sh3.36 billion it recorded in the same period the previous year.
Despite revenues rising by 11 per cent to Sh27.46 billion from Sh24.74 billion, its operating costs rose significantly to Sh18.09 billion from Sh15.63 billion.
The company also incurred higher finance costs during the period - a rise to Sh1.17 billion from Sh897 million - owing to the expiry of a moratorium on some of the borrowings whose repayments were deferred in the aftermath of the Covid-19 pandemic.
“Operating costs increased primarily due to an increase in the depreciation expense following reevaluation of assets, the addition of Olkaria I Unit 6 and an increase in insurance costs,” said KenGen.
The firm did not declare payment of an interim dividend to its shareholders.
At the same time, KenGen announced further changes in its Bboard, appointing lawyer Julius Migos Ogamba as its new chairman.
Mr Ogamba replaces General (Rtd) Samson Mwathethe, who had served since November 2020. His three-year term was due to end in November.
“The Board of Directors of KenGen, at its meeting of Tuesday, February 28, 2023, appointed Julius Migos Ogamba as the chairman of the company. The board would like to thank Mr Mwathethe for his dedicated stewardship of the company ... over the last two years as he guided the company through national and global milestones,” said KenGen.
Mr Ogamba holds a Bachelor of Laws (LLB) degree from the University of Nairobi, a diploma in law from the Institute of Advanced Legal Studies, University of London, and a postgraduate diploma in law from the Kenya School of Law.
The latest shakeup at the company follows the resignation last month of board directors Maurice Nduranu and Joseph Sitati, in changes that also saw the departure of Peris Mwangi and Phyllis Wakiaga.
kenGen has replaced them with Josephine Koisaba, Stephen Mutai and William Rahedi.
“The board is pleased to announce the appointment of Ms Josephine Koisaba, Hon Stephen Mutai and Mr William Rahedi as independent and non-executive members ... with effect from February 28, 2023,” said KenGen.
