KenGen increased investment in Kenya’s power infrastructure to KSh15.5 billion in the year to June 2026, while advancing geothermal, solar, hydropower and battery storage plans.
KenGen power investment reached KSh15.5 billion in the year to June 2026, representing a 14.3% increase in capital spending as the company strengthens its generation business to meet Kenya’s growing electricity needs.
Kenya Electricity Generating Company (KenGen) invested KSh15.5 billion in power infrastructure in the year to June 2026. That represents a 14.3% increase in capital spending, according to the company’s investment announcement.
The state-controlled power producer said the investment supports improvements to existing plants and the development of additional generation capacity. It also supports the commercial use of geothermal resources at Olkaria in Naivasha.
KenGen reported that it supplied 8,975 GWh of electricity to the national grid during the financial year. That volume represented 57.2% of Kenya’s electricity demand. The company added that renewable sources accounted for more than 90% of the electricity it dispatched.
Managing Director and CEO Peter Njenga said Kenya’s peak electricity demand had reached 2,549 MW. He said KenGen aims to maintain reliable power plants while developing more generation capacity for households and businesses.
Geothermal remains central to KenGen’s investment strategy
Geothermal resources remain an important part of KenGen’s investment programme. Kenya’s geothermal sector has already surpassed the 1 GW capacity mark, underlining the resource’s growing role in the country’s electricity system.
KenGen said its investment programme supports the commercial development of geothermal resources through industrial investment at Olkaria.
The company also reported that it had completed rehabilitation of the Olkaria I geothermal power station. However, its 29 October announcement did not specify how much of the KSh15.5 billion capital expenditure went towards that work.
Kenya has increasingly looked to private capital alongside public investment to support further geothermal development.
KenGen is also developing its Green Energy Park at Olkaria. The company aims to attract industries that need geothermal energy and steam. According to the park’s official website, the government has gazetted the development as a Customs Controlled Area.
In July, KenGen announced that it had onboarded Maxim Agri & Samakgro as the park’s fifth investor. The company said the investor plans to use 3 MW of green energy for a fish-feed production plant worth approximately US$3.95 million. KenGen provided these details in its announcement on the fifth investor.
KenGen aims to use geothermal resources for more than electricity generation. The Green Energy Park also seeks to attract industrial activity to Olkaria.
Solar and battery storage feature in wider project pipeline
Beyond its reported capital expenditure, KenGen has outlined a wider project pipeline covering solar, hydropower and energy storage. The company detailed these plans in its October investment announcement.
The portfolio includes the proposed 42.5 MW Seven Forks solar plant, redevelopment of the Gogo hydropower station, battery storage and a proposal to raise Masinga dam. KenGen did not disclose how much, if any, of the KSh15.5 billion it allocated to these individual projects.
The company said battery storage and the proposed Masinga dam works form part of its plans to strengthen the electricity system. It also linked the dam proposal to better water management for hydropower generation. However, the announcement did not give project-specific implementation timetables.
KenGen balances investment with shareholder returns
KenGen’s higher capital spending comes alongside changes in its financial position and shareholder distributions.
At its Annual General Meeting on 29 October, shareholders approved a first and final dividend of KSh0.75 per share for the financial year ended 30 June 2026. The previous year’s dividend stood at KSh0.90 per share, according to the company.
KenGen reported that revenue increased 6.4% to KSh59.7 billion. Operating profit rose 4.1% to KSh14.2 billion. However, profit after tax fell 1.2% to KSh10.35 billion. The company attributed the decline mainly to lower finance income as it deployed cash into capital investment.
KenGen also reduced its borrowings by KSh12.2 billion to KSh97.1 billion. Board Chairman Frank Konuche said the company was balancing shareholder returns with investment in assets expected to generate future earnings. He also highlighted the company’s efforts to reduce debt.
KenGen’s investment programme reflects the cost of maintaining existing generation assets while preparing additional capacity. Its progress will depend on project delivery, financing and the company’s ability to bring new generation and storage capacity into operation as electricity demand increases.
