Monday, November 19, 2018

Kenya: New Geothermal Wellhead Plants Helps KenGen Reduce Tax Costs

KenGen profit drop 12% to KSH 7.8 billion on tough environment (The Exchange)

Kenya’s electricity generator- Kenya Electricity Generating Company (KenGen) has recorded a 12.4 per cent drop on its profit for the financial year ended June 30, weighed down by increased expenses amid a drought that hit the country.

The Nairobi Securities Exchange (NSE) listed company closed the year with a Ksh7.89 billion profit, down from Ksh9.01 billion recorded last year.

According to the firm, the prior year’s tax expense was lower “largely due to the effect of tax incentive (investment deduction) granted on commissioning of the new geothermal wellhead plants.”

During the year, the leading power generator recorded increased costs on steam which went up to Ksh3.5 billion from Ksh2.8 billion. Steam revenues however soared to Ksh6.2 billion.

Geothermal guaranteed a dependable energy supply given the electricity revenue’s increase to Kshs17.1 billion. In their next business year, KenGen has set a delivery target of 165.4 MW from their already advanced geothermal project.

The implementation of 83.3 MW Olkaria I Unit 6 geothermal project has also commenced with planned commissioning in early 2021.

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