Kenya Electricity Generating Co Ltd (KenGen), has signed a contract for drilling three exploratory geothermal wells in Tanzania.
The move is part of KenGen’s strategic revenue diversification plan, extending its operations beyond Kenya’s borders.
KenGen’s Managing Director and Chief Executive, Peter Njenga, said the move was prudent for diversification into external markets.
Already established in Ethiopia and Djibouti, KenGen has also engaged with Malawi, which seeks assistance in exploring its geothermal potential.
KenGen Presence in EAC
Now, Tanzania, Zambia, and Rwanda are on KenGen’s radar. The Tanzanian geothermal project, a compact initiative, is slated for completion within three months.
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Kenya currently boasts an impressive geothermal energy capacity, generating over 800 megawatts from this renewable source.
This achievement places Kenya among the world’s leading geothermal energy producers.
KenGen’s regional expansion aims to enhance its performance and contribute to Kenya’s attractiveness for international investments.
KenGen Targeted Net Earnings
The company targets a net earnings goal of Ksh.8 billion ($55.2 million) by the end of June 2024, a substantial increase from the previous year’s Ksh.5 billion ($34.5 million).
KenGen’s profit surge in recent years, driven by a 14% revenue growth, underscores its commitment to efficiency and sustained growth.
As KenGen ventures into Tanzania’s geothermal landscape, it continues to play a pivotal role in shaping Africa’s energy future.
The company’s vision extends beyond national boundaries, with aspirations of headlining major productions in global energy hubs.
With each well drilled, KenGen contributes not only to its own success but also to the sustainable development of neighboring nations. The journey toward cleaner, greener energy continues, fueled by KenGen’s expertise and determination.
