Ken Gen production plan.[photo/kengen.co.ke]Kenya Generating Company (KenGen) is hoping to raise up to Sh1 billion annually through a subsidiary meant to boost its revenue streams. The new firm, KenGen Energy Services Limited, unveiled to its shareholders yesterday is part of the company’s revamped “Good to Great” transformation strategy.
Under the strategy, KenGen aims to provide adequate returns to its shareholders by targeting a return-on-invested-capital of 10 percent while at the same time generating cheaper renewable power to its consumers.
The subsidiary, which is 100 percent owned by the power producer, will be responsible for consultancy services across the region and continent on geothermal development, drilling services, geothermal spa and tourism, geothermal mineral extraction and industrial park being established at the Olkaria geothermal field in Naivasha, Nakuru County.
“It will pursue several revenue initiatives, as we want to run our business in a sustainable manner while creating value for our stakeholders, and one way of achieving this is to diversify our revenue streams,” said Rebecca Miano, Chief executive, during the company’s 65th Annual General Meeting (AGM) yesterday.
KenGen, majority owned by the government, also said that it is on course with plans to add additional 721megawatts (MW) of renewable energy by 2020 to the national grid.
The firm targets to increase geothermal generation capacity to 1,164MW from the current 534MW and increase wind power from 26MW to 1,16MW. KenGen has also engaged a consultant to undertake a feasibility study for a pilot 40MW Solar PV project.