Managing Director & CEO
The year 2015 was one of tremendous change,accomplishment and celebration for KenGen. We transformed the Company by successfully completing one of the single largest geothermal power projects in the world – 280MW project in Olkaria.
We are looking forward to and are optimistic about the future. Our strategy is geothermal-led; we target to install an additional 720 Megawatts (MW) by the year 2020 out of which 580MW will come from geothermal sources. Our capacity addition projects are aligned with the country’s medium term and Vision 2030 energy targets. New technologies, changing regulations, a growing power market and changing economic conditions mean that a significant number of challenges lie ahead.
We are innovating, operating efficiently, reducing expenses and expanding our capital expenditures to grow our business. During our 61 years of existence, we have overcome many obstacles to become the company we are today. We are gearing towards the vision of becoming the market leader in the provision of reliable, safe, quality and competitively priced energy in the Eastern Africa Region.
This vision is built on strategic pillars of capital expansion, regulatory management and operational excellence. These pillars are founded on a healthy, robust and effective organisation. We have transformed the way we manage all our functions. We are optimizing the utilization of resources available to us, laying the foundation for a leaner, more agile utility that makes a meaningful contribution to the country.
Yet a lot more needs to be done as the Company shoulders the bulk of supplying power for the nation’s
growth needs. We have stepped up to meet our contribution to the Government’s 5000+MW capacity addition by December 2016. Under this plan KenGen had been tasked to deliver 844MW by 2016. Of this targeted capacity, we have already delivered 330.6MW of geothermal, 24MW of hydro, and 20.4MW of wind. A total of 375MW has been achieved from the target, leaving a balance of 469MW by 2016. The cost of delivering the additional 469MW into the national grid is estimated at Shs120 billion. We are financially restructuring our balance sheet to create room for more debt as well as pursue offbalance sheet financing to meet this capital need. Careful financial planning will ensure a strong and solid future.
We have come a long way. The Company’s earnings significantly grew in 2015, compared with 2014, largely due to our robust investment strategy and delivery of projects.
Our improved operational performance, prudent spending, innovation and continuous improvement contributed to ending the year on a position of strength.
A vital portion of our value system is our continued commitment to safety. This commitment ensures that our employees have the tools, training and resources necessary to perform their jobs and return home unharmed at the end of each workday.
During the year fifty four accidents, incidents and near misses were reported. We have dedicated our efforts to secure all our work areas and invested in safety systems and procedures to guard against a recurrence. There were
also two fire incidents in the Olkaria area, thankfully they caused no injuries and the equipment lost through the
fires are being replaced. To enhance prompt response to incidents of fire and other incidents, we have increased the number of Fire Marshalls and First Aid responders as well as conducting regular safety drills.
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