KenGen Earnings Drop After Drought

19 October 2010 (Last Updated October 19th, 2010 18:30)

KenGen, Kenyan electricity producer, has posted a 47% drop in its full-year pretax profit to SOS2.41bn ($29.9m) after a drought hit its hydropower production. The company said that projected energy production could not be met because of the dry conditions. The revenues from t

KenGen, Kenyan electricity producer, has posted a 47% drop in its full-year pretax profit to SOS2.41bn ($29.9m) after a drought hit its hydropower production.

The company said that projected energy production could not be met because of the dry conditions.

The revenues from the sale of electricity also fell 14.8% to SOS9.81bn, according to Reuters.

Hydroelectric dams are KenGen’s major source of generating electricity, however, the company has plans of diversifying energy sources to geothermal and wind.

KenGen is also planning to increase its electricity production by 140MW to 1,200MW by the end of 2010, with another 130MW to be added in 2012.