Tax savings on Olkaria V project doubles KenGen’s profits

Tax savings on Olkaria V project doubles KenGen’s profits

February 28, 2020 0 By mykenyancareers
OKALIRA KENGEN I - Tax savings on Olkaria V project doubles KenGen’s profits
Miano also attributed the growth to the roll-out of the company’s business diversification strategy, which has seen the company clinch two drilling contracts in Ethiopia/FILE

NAIROBI, Kenya, Feb 28 – Kenya Electricity Generating Company, KenGen, has posted a 98 percent increase on its profit after tax to hit Sh8.17 billion for the first half of the 2019/2020 financial year ending December 2019.

The company has attributed the growth to tax savings arising from the
completion of 165MW Olkaria V geothermal project which also resulted in a tax
credit of Sh1.89 billion, compared to a tax expense of Sh1.9 billion in the
previous period.

KenGen also realized a 127 percent growth in
other income, from Sh211 million in 2018 to Sh479 million for the six months
ended December 31st, 2019.

The company’s Managing Director and CEO Rebecca
Miano attributed the growth to the roll-out of the company’s business
diversification strategy, which has seen the company clinch two drilling
contracts in Ethiopia.

Analysts at Genghis Capital expect KenGen to
have a buoyant financial performance this year, pegged on the geothermal
capacity increase, additional contractual revenue streams and the large tax
credit.