ENERGY benefit most . The government is very keen to see this happen ” The income from leasing out the land for industrial development and more importantly the sale of both electricity and steam , would go straight to KenGen ’ s bottom line .
Mugo has recently meeting at which he shared his 2014 financial results with his shareholders . It was an agreeable occasion for all : geothermal has really impacted the top line , with revenue to December 2014 up 37 percent on the previous half year . Revenue from electricity sales jumped by a third to Ksh11.6 billion from Ksh8.4 billion in December 2013 . Profit before tax showed a 100 percent improvement . The shareholders , including the Kenyan government which holds a 70 percent stake , are very much behind KenGen since it cleared with no problem a $ 300 million loan from the French Development Agency to fund Olkaria development back in 2009 .
Not surprisingly they are extremely keen to support future development , he says . “ We are also looking at restructuring our balance sheet to give us more headroom for debt : so we are planning a rights issue and asking investors to put Ksh 30 billion into the company .” Mugo also said the firm is in discussions with the government to convert up to KSHs 20 billion of loans to KenGen into equity during the rights issue . If this can all happen by September this year as planned the company will be in excellent shape to meet its future obligation to catalyse Kenya ’ s growing prosperity .
Company Information
INDUSTRY
Energy
HEADQUARTERS
Nairobi , Kenya
FOUNDED
2002
EMPLOYEES
2,300
REVENUE
KSHs 12 billion
PRODUCTS / SERVICES
Electricity generation www . kengen . co . ke 65