Latest / The Mwango Capital Podcast / Understanding KenGen’s FY 2026 Results

Transcript

Understanding KenGen’s FY 2026 Results · The Mwango Capital Podcast

• 0:00
  SPEAKER_00: Welcome to this special edition of Mwango Spaces on a Friday evening.
• 0:03
  SPEAKER_00: Kenjen reported the results last Friday.
• 0:06
  SPEAKER_00: So a week later, we've had enough time to digest some of those earnings.
• 0:10
  SPEAKER_00: So today we're going to be taking through the earnings,
• 0:12
  SPEAKER_00: the strategy around Kenjen and its business model and all.
• 0:16
  SPEAKER_00: Just want to open up the conversation first of all with our guests.
• 0:20
  SPEAKER_00: He's going to introduce himself,
• 0:21
  SPEAKER_00: speak a little bit about the financial results and the strategy,
• 0:23
  SPEAKER_00: and then I will introduce a few questions from the audience.
• 0:26
  SPEAKER_00: So engineer, I want to...
• 0:28
  SPEAKER_00: Welcome you to Mwango Spaces.
• 0:30
  SPEAKER_00: It's been a year.
• 0:30
  SPEAKER_00: How are you?
• 0:31
  SPEAKER_00: I'm very well.
• 0:33
  SPEAKER_00: This evening, I'm feeling good.
• 0:35
  SPEAKER_00: Maybe you can tell us a bit about your background and journey towards Kenji and CEO.
• 0:39
  SPEAKER_00: How was your journey like so that our listeners can have that context as they listen
• 0:43
  SPEAKER_00: to the results?
• 0:44
  SPEAKER_02: I started my journey in Kenya power and lighting more than 32 years ago.
• 0:50
  SPEAKER_02: I actually started as a new engineer in 1991.
• 0:53
  SPEAKER_02: And of course,
• 0:54
  SPEAKER_02: more than three decades working with individual customers who enjoy electricity
• 0:59
  SPEAKER_02: from KPLC.
• 1:01
  SPEAKER_02: And I rose to the position of general manager infrastructure development
• 1:05
  SPEAKER_02: before joining Kenjen in the month of August 2023.
• 1:08
  SPEAKER_02: So I am now three years and about one month in Kenjen.
• 1:13
  SPEAKER_02: And what drew me to this sector is very simple.
• 1:17
  SPEAKER_02: Electricity is one input.
• 1:19
  SPEAKER_02: Every other part of the economy depends on.
• 1:22
  SPEAKER_02: In fact,
• 1:23
  SPEAKER_02: I normally say that if you look at any industry,
• 1:26
  SPEAKER_02: any sector, it is driven by electricity.
• 1:30
  SPEAKER_02: And when power goes off, a hospital, a factory, and the students all feel it at the
• 1:35
  SPEAKER_00: same moment.
• 1:37
  SPEAKER_02: Working on the network side,
• 1:38
  SPEAKER_02: you can imagine at KPLC,
• 1:40
  SPEAKER_02: I was handling a number of customers and that gave me a lot of experience on how
• 1:45
  SPEAKER_02: to handle customers backwards.
• 1:47
  SPEAKER_02: And that shaped, of course, how I lead Kenjin today.
• 1:51
  SPEAKER_02: And of course,
• 1:52
  SPEAKER_02: you understand that if you have many customers,
• 1:56
  SPEAKER_02: it is totally different from how you handle one client.
• 1:59
  SPEAKER_02: Because currently for Kenjin, we have one-off taker, KPLC.
• 2:03
  SPEAKER_02: But of course, the experience I had in KPLC taught me a lot on how to handle clients.
• 2:09
  SPEAKER_02: And every decision we make,
• 2:10
  SPEAKER_02: whether it is a new planned maintenance program or how much cash we retain,
• 2:16
  SPEAKER_02: is tested against two questions, basically.
• 2:18
  SPEAKER_02: Whether it puts reliable,
• 2:20
  SPEAKER_02: affordable power on the grid,
• 2:22
  SPEAKER_02: when of course every Kenyan needs it,
• 2:25
  SPEAKER_02: and does it build lasting value for our shareholders.
• 2:29
  SPEAKER_00: The energy question is a front of mind,
• 2:31
  SPEAKER_00: especially in this age of AI for most people, and especially in Kenya.
• 2:35
  SPEAKER_00: I think power directly affects, as you say, a lot of businesses.
• 2:38
  SPEAKER_00: Can you just give us a small picture?
• 2:40
  SPEAKER_00: Because you've been at Kenya Power and KenGen.
• 2:42
  SPEAKER_00: How do they relate in terms of who are the key players in the energy sector in Kenya?
• 2:46
  SPEAKER_00: Just to give us a broad context for someone who's maybe new to the market itself.
• 2:51
  SPEAKER_00: Who are the key players there?
• 2:52
  SPEAKER_00: What does KenGen do and what does Kenya Power do?
• 2:55
  SPEAKER_00: And also the new regulations coming up to shape up that sector.
• 2:57
  SPEAKER_00: You can give a little bit of a teaser on that also.
• 3:01
  SPEAKER_02: It's important for all of us to understand that we are in a chain where we have
• 3:07
  SPEAKER_02: the generators, where Kenjin plays the biggest part in generating power.
• 3:12
  SPEAKER_02: And of course,
• 3:13
  SPEAKER_02: we have our counterparts,
• 3:14
  SPEAKER_02: the independent power producers,
• 3:16
  SPEAKER_02: and then that power after generation has to be transported to where it is required.
• 3:21
  SPEAKER_02: And that is when we call upon our colleagues in Ketrako, the Kenya TZ transmission company.
• 3:27
  SPEAKER_02: That transmits power now to where that power is distributed by our colleagues
• 3:34
  SPEAKER_02: in Kenya Power and Lighting together with RAREC.
• 3:36
  SPEAKER_02: So it's really a serious change from production to transportation
• 3:42
  SPEAKER_02: and finally distribution and retail.
• 3:44
  SPEAKER_02: But again, in between, you also have the regulator.
• 3:47
  SPEAKER_02: EPRA,
• 3:48
  SPEAKER_02: which plays a very critical role to mediate between this institution and ensure that
• 3:53
  SPEAKER_02: the power industry is regulated,
• 3:56
  SPEAKER_02: all because we want to safeguard the interests
• 3:58
  SPEAKER_00: of the customers and,
• 3:59
  SPEAKER_00: of course, the consumers.
• 4:01
  SPEAKER_02: But besides that, we have other critical prayers.
• 4:04
  SPEAKER_02: Of course, on the policy side of this sector, we have the Ministry of Energy and the Petroleum.
• 4:10
  SPEAKER_02: And again, governance-wise, we fall under our Ministry of National Treasury.
• 4:15
  SPEAKER_02: And of course,
• 4:16
  SPEAKER_02: I think most people are now aware That the government has put us under the GOE or
• 4:21
  SPEAKER_02: the government owned enterprise.
• 4:23
  SPEAKER_02: So that is how the sector is playing.
• 4:26
  SPEAKER_02: Besides now the generation, again,
• 4:29
  SPEAKER_02: because we play our part in the geothermal generation,
• 4:32
  SPEAKER_02: we have our colleagues in geothermal development company.
• 4:35
  SPEAKER_02: Who play a role in de-risking the drilling of the steam.
• 4:41
  SPEAKER_02: Drilling of steam is quite critical.
• 4:44
  SPEAKER_02: Because if you look at the energy sector,
• 4:47
  SPEAKER_02: and in this country, the grid is basically supported by Geosamo.
• 4:52
  SPEAKER_02: Because Geosamo is quite stable.
• 4:54
  SPEAKER_02: If you look backwards in the years,
• 4:55
  SPEAKER_02: early 2000, we had a lot of challenges because of other ease of weather.
• 5:00
  SPEAKER_02: There was a lot of drought.
• 5:01
  SPEAKER_02: And most of the dams where we were generating most of the power from hydro had dried up.
• 5:08
  SPEAKER_02: And therefore there was a deliberate move that was made by Kenjin that time
• 5:12
  SPEAKER_02: to accelerate the drilling of steam.
• 5:15
  SPEAKER_02: And it was very successful.
• 5:16
  SPEAKER_02: And today, even when we have dry spells, we are able to dispatch electricity continuously.
• 5:23
  SPEAKER_00: That's one of the key things I think Kenya gets a lot of credit
• 5:25
  SPEAKER_00: for being very reliant on renewable energy.
• 5:28
  SPEAKER_00: Could you give us a bit of maybe then context?
• 5:30
  SPEAKER_00: What does Kenjen do?
• 5:32
  SPEAKER_00: What is your role in the electricity chain as Kenjen yourself?
• 5:35
  SPEAKER_00: And what's your value proposition to customers,
• 5:37
  SPEAKER_00: especially now the off-taker with Kenya Power in this case?
• 5:40
  SPEAKER_02: Very good question.
• 5:42
  SPEAKER_02: We play in the area of generation,
• 5:44
  SPEAKER_02: as I have said earlier,
• 5:45
  SPEAKER_02: but basically our portfolio falls in the area of hydro, as I had mentioned.
• 5:51
  SPEAKER_02: We are in geothermal.
• 5:52
  SPEAKER_02: We have a small weed power plant in Ngo, which also generates about 25.5 megawatts.
• 5:58
  SPEAKER_02: And we also have the thermal, which is from fossil fuel.
• 6:02
  SPEAKER_02: We normally pride ourselves that we generate more than 90% from renewables.
• 6:06
  SPEAKER_02: That is hydro, geothermal, wind.
• 6:08
  SPEAKER_02: And of course,
• 6:09
  SPEAKER_02: from our sister organization,
• 6:11
  SPEAKER_02: REREC, we manage one of the solar power plants
• 6:14
  SPEAKER_01: in Garissa.
• 6:14
  SPEAKER_02: We prayed ourselves that we actually are able
• 6:18
  SPEAKER_02: to produce well competitive priced electricity from our sources.
• 6:24
  SPEAKER_02: And basically it's because we have the support of the government,
• 6:28
  SPEAKER_02: most of our projects that we have been able to do.
• 6:31
  SPEAKER_02: We have gotten support of the government through getting concessional loans
• 6:35
  SPEAKER_02: to be able to implement our projects.
• 6:37
  SPEAKER_02: And these loans are acquired from BFIs at quite reasonable interest rates.
• 6:42
  SPEAKER_02: So our value proposition to KPLC is quite good
• 6:46
  SPEAKER_02: because we give them competitively priced electricity,
• 6:48
  SPEAKER_02: which they can dispatch to the grid and to the clients,
• 6:51
  SPEAKER_02: deducing the costs to our consumers.
• 6:54
  SPEAKER_00: So we'll come back to,
• 6:55
  SPEAKER_00: again, maybe analyzing a bit of the grid system, especially demand versus supply.
• 6:59
  SPEAKER_00: But I want us to take us through the FY26 results from a broad perspective.
• 7:03
  SPEAKER_00: Our revenue grew 6%.
• 7:04
  SPEAKER_00: The revenues of the supply also grew around 6%.
• 7:08
  SPEAKER_00: Profit after start goes down slightly.
• 7:10
  SPEAKER_00: So maybe you can give us a broad overview of key numbers,
• 7:13
  SPEAKER_00: a bird's eye view,
• 7:14
  SPEAKER_00: and then we'll dig into a few things here and there that would be interesting
• 7:17
  SPEAKER_00: for our listeners.
• 7:19
  SPEAKER_02: So as you have mentioned, the revenue for our financial year 2025-26 grew by 6.4%.
• 7:27
  SPEAKER_02: And we actually recorded a revenue of 59.7 billion Kenya shillings.
• 7:32
  SPEAKER_02: Electricity supply to the The grid also increased by 5.8% to 8,975 gigawatt hours.
• 7:40
  SPEAKER_02: And our profit after tax reduced slightly by 1.2% to 10.35 billion Kenya shillings.
• 7:47
  SPEAKER_02: And of course,
• 7:48
  SPEAKER_02: what is very critical to the shareholders,
• 7:50
  SPEAKER_02: the dividend was reduced by 16.7% to 0.75 Kenya shillings per share compared to
• 7:58
  SPEAKER_02: the 90 cents that we paid the previous year.
• 8:01
  SPEAKER_02: What we'd call looking beyond the headline numbers,
• 8:03
  SPEAKER_02: we see that there was quite good recorded performance by the organization
• 8:09
  SPEAKER_02: and operationally.
• 8:10
  SPEAKER_02: We can say out of what we have been able to manage,
• 8:14
  SPEAKER_02: the supply of 8,975 gigawatts contributes 57.2% of the country's electricity.
• 8:22
  SPEAKER_02: And more than 90%, as I indicated earlier, is actually from renewable sources.
• 8:28
  SPEAKER_02: And I'm always very proud to say that we are the largest thermal generating country in Africa.
• 8:34
  SPEAKER_02: In fact, we are number one and we are number six in the world.
• 8:37
  SPEAKER_02: Operating profit rose by 4.1%.
• 8:41
  SPEAKER_02: And that is a very important point that perhaps we can say that in one year,
• 8:47
  SPEAKER_02: we have been able to quite do well.
• 8:49
  SPEAKER_02: So Eric, we are happy to note that our numbers have been quite impressive, as you have noted.
• 8:57
  SPEAKER_00: Indeed.
• 8:57
  SPEAKER_00: So perhaps we can start with revenue.
• 8:59
  SPEAKER_00: I think the increase in terms of electricity supply,
• 9:02
  SPEAKER_00: when you put the electricity supply against the demand in the country,
• 9:06
  SPEAKER_00: how should consumers generally think about,
• 9:08
  SPEAKER_00: or at least the investors will think about that increase in electricity supplied?
• 9:13
  SPEAKER_00: Where is that from generally?
• 9:14
  SPEAKER_00: Are you squeezing a little bit more from the existing plants
• 9:17
  SPEAKER_00: or are you installing new plants so that you can also be able to supply more?
• 9:21
  SPEAKER_02: Three things I would say comfortably drove this growth in revenue.
• 9:25
  SPEAKER_02: And first, we can say it is demand.
• 9:28
  SPEAKER_02: And of course, we are aware that the economy grew by 5.3% in the first quarter of 2026.
• 9:34
  SPEAKER_02: That is quite impressive.
• 9:35
  SPEAKER_02: And when you look at the national peak demand,
• 9:38
  SPEAKER_02: it reached 2,514 MW during the financial year that we are discussing.
• 9:44
  SPEAKER_02: And we have already now,
• 9:45
  SPEAKER_02: in this current financial year,
• 9:47
  SPEAKER_02: seen a new record of 2,549 MW just in the month of July.
• 9:52
  SPEAKER_02: Of course,
• 9:53
  SPEAKER_02: that now demonstrates that the economy is growing and
• 9:56
  SPEAKER_02: the demand will continue growing.
• 9:57
  SPEAKER_02: Secondly, availability.
• 9:59
  SPEAKER_02: Our investment in maintenance kept the fleet ready when the system needed it.
• 10:05
  SPEAKER_02: And so we were dispatched anymore.
• 10:07
  SPEAKER_02: And thirdly,
• 10:08
  SPEAKER_02: our low cost geothermal and hydro plants,
• 10:11
  SPEAKER_02: which of course, because of the costs, are normally dispatched.
• 10:16
  SPEAKER_02: So we say that they are called first when demand rises.
• 10:19
  SPEAKER_02: And it is part of course, but our base is geothermal, which does not depend on rain.
• 10:25
  SPEAKER_02: And it is very sustainable on demand.
• 10:27
  SPEAKER_02: Peak demand has grown roughly by 200 MW as you have seen from those figures
• 10:32
  SPEAKER_02: that I have mentioned in just over one year.
• 10:35
  SPEAKER_02: And of course, there has been a lot of activities in electrification.
• 10:39
  SPEAKER_02: And the country you have seen,
• 10:40
  SPEAKER_02: the country is enjoying a lot of the extension of power to the rural areas and
• 10:44
  SPEAKER_02: to other parts of the country which have never been electrified before.
• 10:48
  SPEAKER_02: And also we have seen growth of industrial parks and the e-mobility
• 10:53
  SPEAKER_02: that is picking up in this country.
• 10:55
  SPEAKER_02: We have seen a majority of Kenyans now getting a lot of interest in getting into e-mobility.
• 11:01
  SPEAKER_02: And of course, this will keep the demand rising up.
• 11:04
  SPEAKER_02: So going forward,
• 11:05
  SPEAKER_02: our revenue growth We depend more on new capacity and on higher dispatch
• 11:10
  SPEAKER_02: from existing plants.
• 11:12
  SPEAKER_02: That is why,
• 11:12
  SPEAKER_02: if I can mention,
• 11:14
  SPEAKER_02: one of our oldest power plants,
• 11:15
  SPEAKER_02: Alcaria 1,
• 11:17
  SPEAKER_02: we have carried out the development and currently we have actually been able
• 11:21
  SPEAKER_02: to commission it and it's currently dispatching power to the grid.
• 11:25
  SPEAKER_02: And of course, we are building up a project on wellheads.
• 11:28
  SPEAKER_02: We are also in the process of implementing a project on Seven Forks, solar.
• 11:33
  SPEAKER_02: So we want to get actually into the solar.
• 11:35
  SPEAKER_02: You realize in our existing fleet, we don't have solar.
• 11:39
  SPEAKER_02: Although we are running one of the power plants for our sister organization,
• 11:43
  SPEAKER_02: a solar power plant in Garissa, we don't have our own.
• 11:46
  SPEAKER_02: And therefore we are setting up our own among our hydropower plants in Kamburu.
• 11:51
  SPEAKER_02: And of course, there will be a project on battery storage.
• 11:54
  SPEAKER_02: Battery storage will be very important because of the variable renewables of wind and solar.
• 12:00
  SPEAKER_02: We need to stabilize that power.
• 12:01
  SPEAKER_02: And therefore we are getting into battery storage.
• 12:04
  SPEAKER_02: And in the coming years, we should be able to see quite a lot of that work being done.
• 12:09
  SPEAKER_00: That's very interesting.
• 12:10
  SPEAKER_00: I think a good segue,
• 12:11
  SPEAKER_00: maybe to ask you also about your nuclear power plants in that regard,
• 12:14
  SPEAKER_00: but you could tell us a bit about our drought going on in the country also.
• 12:19
  SPEAKER_00: Would that affect the hydro generation, especially this FY27?
• 12:23
  SPEAKER_02: To us, I think the issue of talking about the weather,
• 12:26
  SPEAKER_02: of course,
• 12:27
  SPEAKER_02: I know you're aware,
• 12:27
  SPEAKER_02: Eric, that there's a lot of discussion about a forthcoming El Nino.
• 12:32
  SPEAKER_02: Our dams,
• 12:33
  SPEAKER_02: because of the rains that came earlier in the year,
• 12:35
  SPEAKER_02: we have managed the flow of water very well.
• 12:38
  SPEAKER_02: And we believe if the short rains and if they are going to graduate into El Nino,
• 12:43
  SPEAKER_02: again, we shall have quite a lot of water.
• 12:47
  SPEAKER_02: And therefore we don't see any challenge in the hydropower generation.
• 12:50
  SPEAKER_02: And of course, as I have mentioned, hydropower power is quite reasonably priced.
• 12:55
  SPEAKER_02: And therefore that will continue to lower the cost of electricity to the clients.
• 12:59
  SPEAKER_02: As you indicated, the issue of nuclear, a very interesting idea that we want to get into.
• 13:05
  SPEAKER_02: And we have already been appointed the owner operator of the first nuclear power plant in Kenya.
• 13:11
  SPEAKER_02: And we have started the stakeholder engagements in Siyaya,
• 13:14
  SPEAKER_02: the site where we have identified That it is comfortable for a nuclear power plant.
• 13:19
  SPEAKER_02: So that is what we are doing currently.
• 13:21
  SPEAKER_02: And after the stakeholder engagement,
• 13:23
  SPEAKER_02: we now look out for doing site characterization to determine exactly where
• 13:29
  SPEAKER_02: the power plant will be put and what is required for it.
• 13:32
  SPEAKER_02: And of course,
• 13:33
  SPEAKER_02: again, we get into the issue of financing so that we can establish that power plant.
• 13:37
  SPEAKER_02: Again, nuclear,
• 13:38
  SPEAKER_02: as we have already mentioned,
• 13:40
  SPEAKER_02: is going to be quite important because nuclear power is again A very stable power
• 13:47
  SPEAKER_02: and therefore it will also form a part of our base load part of the grid and
• 13:51
  SPEAKER_02: the support quite a lot of the demand that we are looking at
• 13:54
  SPEAKER_02: that is growing very quickly.
• 13:56
  SPEAKER_00: And on that topic,
• 13:57
  SPEAKER_00: there's been a lot of pushback,
• 13:58
  SPEAKER_00: especially people are worried about nuclear power energy,
• 14:01
  SPEAKER_00: but it's safe to record it's pretty, from my readings, at least very sore.
• 14:04
  SPEAKER_00: What would you say about maybe some people are skeptical about
• 14:07
  SPEAKER_00: that nuclear power energy and how much would you expect in terms
• 14:10
  SPEAKER_00: of base load addition from that?
• 14:12
  SPEAKER_02: Maybe to start, Eric,
• 14:13
  SPEAKER_02: from what you have mentioned about the base load,
• 14:17
  SPEAKER_02: I have indicated it will be at 2,000 Mw.
• 14:19
  SPEAKER_02: So you can see that is quite substantial.
• 14:22
  SPEAKER_00: Very massive.
• 14:23
  SPEAKER_02: Yeah, very massive.
• 14:24
  SPEAKER_02: When you look at the demand that is growing at a very high,
• 14:27
  SPEAKER_02: and I always say, tell Kenyans that maybe...
• 14:30
  SPEAKER_02: We have quite a lot of demand that is not supplied in this country.
• 14:35
  SPEAKER_02: And that's why if you assess the captive power that has been installed
• 14:38
  SPEAKER_02: in this country,
• 14:39
  SPEAKER_02: we are talking of over 500 MW
• 14:41
  SPEAKER_02: or even 1,000 MW, where individual clients have already put their own power generation
• 14:46
  SPEAKER_02: and they are using it.
• 14:47
  SPEAKER_02: So perhaps the reason is because we don't have So going into this,
• 14:53
  SPEAKER_02: that will really support and therefore be able to make our availability quite okay.
• 14:58
  SPEAKER_02: So the issue of safety of nuclear,
• 15:01
  SPEAKER_02: this is something that we need to assure Kenyan that all the countries that are
• 15:06
  SPEAKER_02: into nuclear power,
• 15:09
  SPEAKER_02: especially the ones who are manufacturing these equipment for nuclear,
• 15:12
  SPEAKER_02: they have really done a lot of research.
• 15:15
  SPEAKER_02: And in fact,
• 15:15
  SPEAKER_02: from my own experience,
• 15:17
  SPEAKER_02: from the site I have been able to visit,
• 15:19
  SPEAKER_02: We have been assured that nuclear is actually the safest mode of generation compared
• 15:25
  SPEAKER_02: to the other modes of generation.
• 15:27
  SPEAKER_02: In fact, the safety is up to over 99.8% safety.
• 15:33
  SPEAKER_02: So you can imagine the precautions that have been taken,
• 15:36
  SPEAKER_02: all the technology that has been used to ensure there is not any chance
• 15:41
  SPEAKER_02: of any nuclear leakages.
• 15:43
  SPEAKER_02: And the countries who are developing these equipments, they work together.
• 15:48
  SPEAKER_02: They are regulated and therefore they work together to ensure
• 15:51
  SPEAKER_02: that safety is paramount for the nuclear power plants.
• 15:55
  SPEAKER_00: So you have quite a bit of work to do there because on my readings,
• 15:58
  SPEAKER_00: some people are quite skeptical in terms of the nuclear energy,
• 16:01
  SPEAKER_00: but I think my point of view,
• 16:02
  SPEAKER_00: so I second you in the sense of,
• 16:04
  SPEAKER_00: I think it's a powerful addition given our country's demand is growing and we want
• 16:07
  SPEAKER_00: to be an industrialized nation soon.
• 16:09
  SPEAKER_00: I want to take you back Back perhaps to the profitability aspect,
• 16:13
  SPEAKER_00: operating profit drew around 4%, finance income declined.
• 16:16
  SPEAKER_00: I think the cash results are being redeployed into capital projects.
• 16:20
  SPEAKER_00: Could you tell us a bit about the sacrifice you're making on investment income so
• 16:23
  SPEAKER_00: that you can build higher long-term earnings capacity in that regard?
• 16:27
  SPEAKER_00: What drove that decline in finance income?
• 16:31
  SPEAKER_02: It's important to confirm here that it is true.
• 16:35
  SPEAKER_02: That operating profit grew, but the financing income declined to $2.86 billion.
• 16:41
  SPEAKER_02: And the cash results were deployed into capital projects.
• 16:44
  SPEAKER_02: And it is true, this was deliberate move.
• 16:47
  SPEAKER_02: And cash in a deposit earns interest for a year, if we may look at it that way.
• 16:53
  SPEAKER_02: But cash that is put into a geothermal hydropower plant will earn you revenues
• 16:59
  SPEAKER_02: for periods over 25 years.
• 17:01
  SPEAKER_02: Yeah, over 25 years.
• 17:03
  SPEAKER_02: A financial income fell by about 1.2 billion in actual figures.
• 17:08
  SPEAKER_02: And part of that is because we moved cash into assets.
• 17:11
  SPEAKER_02: And part is because market interest rates again east during the year,
• 17:16
  SPEAKER_02: and this affected every hold of deposits.
• 17:19
  SPEAKER_02: But meanwhile,
• 17:20
  SPEAKER_02: we observed that operating profit,
• 17:22
  SPEAKER_02: the real engine for this business grew by 4.1%, as you have indicated.
• 17:27
  SPEAKER_02: I would ask that we look at this quality of earnings.
• 17:30
  SPEAKER_02: Profit from generating power is more durable than profit from treasury income.
• 17:36
  SPEAKER_02: I think this is a very important fundamental question.
• 17:39
  SPEAKER_02: We accepted a small dip in the bottom line today actually to build assets
• 17:44
  SPEAKER_02: that will lift our earnings capacity as they come online.
• 17:49
  SPEAKER_00: Thank you for that.
• 17:49
  SPEAKER_00: And then looking at the balance sheet,
• 17:51
  SPEAKER_00: borrowings fell, finance costs from the income statement also fell.
• 17:55
  SPEAKER_00: I think your balance sheet now, as you see, it's one of the strongest it's been in years.
• 17:59
  SPEAKER_00: Now, how are you thinking about balance sheet strength in relation to some of
• 18:02
  SPEAKER_00: the expansion projects that you have?
• 18:04
  SPEAKER_00: Is it a deliberate effort to reduce borrowings or does also spike given
• 18:08
  SPEAKER_00: the capex needs that you have in the near future?
• 18:11
  SPEAKER_02: We balance the strength and growth in three ways.
• 18:14
  SPEAKER_02: First, we found what we can from operations,
• 18:17
  SPEAKER_02: which generated about 30 billion Kenya shillings in cash last year.
• 18:21
  SPEAKER_02: And secondly, we will not put the entire pipeline on Kenjin's balance sheet.
• 18:26
  SPEAKER_02: Like Wellhead,
• 18:27
  SPEAKER_02: Leasing and Public-Private Partnerships bring in partner capital,
• 18:31
  SPEAKER_02: while Kenjen keeps the resource and expertise.
• 18:35
  SPEAKER_02: Third cost,
• 18:36
  SPEAKER_02: operating expenses rose by 6.8%,
• 18:39
  SPEAKER_02: mainly from planned maintenance that protects availability and revenue.
• 18:44
  SPEAKER_02: We are watching that line closely because it grew slightly faster than net revenue.
• 18:49
  SPEAKER_02: And it's so much important to say that actually,
• 18:51
  SPEAKER_02: By being disciplined about the order in which we do this,
• 18:54
  SPEAKER_02: that is why the borrowing fell by $12.2 billion,
• 18:57
  SPEAKER_02: partly through repayments and partly because a stronger shilling reduces the value
• 19:02
  SPEAKER_02: of our foreign loans.
• 19:04
  SPEAKER_02: And finance costs are down by 12.1%.
• 19:07
  SPEAKER_02: And our borrowings are now about a third of our equity.
• 19:11
  SPEAKER_02: That headroom is what allows us to raise money on good terms when we need it.
• 19:16
  SPEAKER_02: And of course, that is very important.
• 19:18
  SPEAKER_02: We have an array of projects that we have lined up and that will require a lot
• 19:22
  SPEAKER_02: of funds for us to be able to implement those projects.
• 19:26
  SPEAKER_00: So going forward,
• 19:26
  SPEAKER_00: you've also raised your target in terms of your long-term power generation targets
• 19:30
  SPEAKER_00: by 2024 to around 5,540 MW.
• 19:32
  SPEAKER_00: Could you speak to us about your vision there in terms of the amount
• 19:38
  SPEAKER_00: of capital perhaps that you need also to put that into effect?
• 19:42
  SPEAKER_00: Help us think through capital activity in the next couple of years and your targets.
• 19:46
  SPEAKER_00: What's driving that target and why do you want to be there?
• 19:49
  SPEAKER_02: I think, Eric, three things have changed.
• 19:51
  SPEAKER_02: First, demand has grown very fast than we planned.
• 19:55
  SPEAKER_02: And as I had mentioned earlier, we have seen a record peak demand of over 2,500 MW.
• 20:02
  SPEAKER_02: And this sets records in such 60 years.
• 20:05
  SPEAKER_02: And new industrial demand are arriving, including investors.
• 20:10
  SPEAKER_02: We have a green energy pack that we have developed in Olkaria.
• 20:14
  SPEAKER_02: And an interesting investment where we have encouraged investors to come
• 20:19
  SPEAKER_02: and enjoy 100% green energy from our green energy park.
• 20:24
  SPEAKER_02: Of course, all this is going to drive demand.
• 20:27
  SPEAKER_02: Secondly,
• 20:27
  SPEAKER_02: the national plan now includes new sources,
• 20:30
  SPEAKER_02: notably what we have spoken about, the 2,000 MW of nuclear.
• 20:34
  SPEAKER_02: And there is also an interesting hydropower plant that has been in the thoughts
• 20:42
  SPEAKER_02: for quite a long time.
• 20:43
  SPEAKER_02: The 700 MW hydropower plant, we call it the hydrant force.
• 20:48
  SPEAKER_02: Alongside, of course, greater geothermal potential than we had assumed.
• 20:52
  SPEAKER_02: That increased appetite for clean energy in Kenya has grown,
• 20:56
  SPEAKER_02: which makes partnerships financing more available.
• 21:00
  SPEAKER_02: So we can say that we need to recalibrate.
• 21:03
  SPEAKER_02: And geothermal will remain our reliable baseload.
• 21:07
  SPEAKER_02: Hydro upgrades and the raising of Mazinga, these are some of the projects that we are eyeing.
• 21:12
  SPEAKER_02: Raising Mazinga,
• 21:14
  SPEAKER_02: I think it's important I expound on this one because raising Mazinga will provide us
• 21:19
  SPEAKER_02: with an opportunity to store more water and therefore be able to provide
• 21:24
  SPEAKER_02: the hydropower Over a longer period, especially during the dry spells.
• 21:29
  SPEAKER_02: So that is a very important project that we are fixed on and we believe we should do it.
• 21:34
  SPEAKER_02: And we are going to ensure that the supply of hydropower is more flexible.
• 21:40
  SPEAKER_02: Solar starts with what I had mentioned earlier, the seven forks.
• 21:44
  SPEAKER_02: It's something that we are again almost starting to implement.
• 21:49
  SPEAKER_02: Battery storage will help us manage the evening peak power.
• 21:53
  SPEAKER_02: And of course,
• 21:54
  SPEAKER_02: nuclear will come over a longer term because the first machine,
• 21:58
  SPEAKER_02: we expect it to be online by the year 2034.
• 22:02
  SPEAKER_02: So I wanted to be clear that the 5,540 MW is a development pipeline to
• 22:08
  SPEAKER_02: the year 2034, and it will be delivered in phases.
• 22:12
  SPEAKER_02: Each project will have to meet our investment criteria.
• 22:16
  SPEAKER_02: And of course,
• 22:17
  SPEAKER_02: we are doing a lot of feasibility study towards that,
• 22:20
  SPEAKER_02: us being able to answer that question of whether these projects are really viable.
• 22:25
  SPEAKER_02: And be able now,
• 22:26
  SPEAKER_02: of course,
• 22:26
  SPEAKER_02: to convince the investors and people who are going to provide the debt capital
• 22:30
  SPEAKER_02: that they will be able to get repaid what they are going to put in.
• 22:34
  SPEAKER_02: And not all of it will sit on Keynes' balance sheet, of course.
• 22:38
  SPEAKER_02: That will also be very helpful.
• 22:39
  SPEAKER_02: So our strategy is quite ambitious,
• 22:43
  SPEAKER_02: but we believe that with the economy opening up and having a situation
• 22:47
  SPEAKER_02: where investors flow into Kenya that we have seen it before,
• 22:52
  SPEAKER_02: then it means we shall require all these projects to be implemented
• 22:56
  SPEAKER_02: as we have planned.
• 22:57
  SPEAKER_00: One thing here you say,
• 22:58
  SPEAKER_00: then partners would be key in terms of your achieving your strategy and some of
• 23:02
  SPEAKER_00: the key partners are the DFIs who want to invest alongside you going forward.
• 23:06
  SPEAKER_00: But could you be specific in terms of maybe capex needs maybe in the coming year or so?
• 23:11
  SPEAKER_00: Are there specific numbers that you have in mind as you try to expand some of
• 23:14
  SPEAKER_00: the existing projects and setting up new ones?
• 23:17
  SPEAKER_02: No,
• 23:17
  SPEAKER_02: looking at the horizon of the 10 years and the total amount of power that we need
• 23:23
  SPEAKER_02: to put in,
• 23:24
  SPEAKER_02: the 5,540,
• 23:26
  SPEAKER_02: we have worked out our numbers and that will require capital outlay of
• 23:30
  SPEAKER_02: about 11.13 billion US dollars.
• 23:34
  SPEAKER_02: If you work out, that will mean about 1.1 billion US dollars every year.
• 23:41
  SPEAKER_02: This particular year and of course this particular strategy we started in
• 23:44
  SPEAKER_02: the year 2024,
• 23:46
  SPEAKER_02: we have already been able to acquire some of this funding
• 23:49
  SPEAKER_02: and there are some projects that I have mentioned earlier which are already
• 23:51
  SPEAKER_02: under implementation and we have gotten the funding for those projects.
• 23:55
  SPEAKER_02: So we are actually focusing our eyes to what now looking at year on year, how much you require.
• 24:02
  SPEAKER_02: We are engaging guys, we are engaging even our local banks.
• 24:05
  SPEAKER_02: We recently had that discussion with the KCB and they are very keen to also weigh in
• 24:10
  SPEAKER_02: and be able to support us in some of our projects.
• 24:14
  SPEAKER_00: Engineer,
• 24:14
  SPEAKER_00: one of the things perhaps from the results that you are not pleasing,
• 24:17
  SPEAKER_00: besides the profit after tax, which you've heavily explained, was the dividend.
• 24:21
  SPEAKER_00: I think there was a reduction in 16% and the investors weren't too happy about that.
• 24:26
  SPEAKER_00: Could you explain to them why the dividend had to be cut?
• 24:28
  SPEAKER_00: Also check them through your long-term planning around the capital allocation
• 24:33
  SPEAKER_00: and why it was important to preserve dividends for this year.
• 24:36
  SPEAKER_02: I think that's a very important question and it's important for us to take a time
• 24:40
  SPEAKER_02: to explain this because I have talked about an array of projects that we want
• 24:44
  SPEAKER_02: to implement going forward in the next 10 years or so.
• 24:48
  SPEAKER_02: And that will require a lot of capital outlay.
• 24:51
  SPEAKER_02: And of course, prudency requires that we also look at going forward out of what we generate.
• 24:57
  SPEAKER_02: Can we look at retaining some earnings to be able to fund these projects going forward?
• 25:03
  SPEAKER_02: And as I indicated earlier, it's critical.
• 25:05
  SPEAKER_02: That we look at the long term investments that will be able
• 25:09
  SPEAKER_02: to sustain these dividend payouts in the future.
• 25:13
  SPEAKER_02: Dividend payout,
• 25:14
  SPEAKER_02: that's a decrease in the dividend payout is really a decision that was made by
• 25:18
  SPEAKER_02: the board looking at our strategy.
• 25:21
  SPEAKER_02: And of course,
• 25:21
  SPEAKER_02: this is going to really ensure that the Kenjin of
• 25:26
  SPEAKER_02: the future will have more revenues coming in from additional projects
• 25:31
  SPEAKER_02: that we are going to implement.
• 25:33
  SPEAKER_02: So I believe this is the way to go.
• 25:36
  SPEAKER_02: But again,
• 25:36
  SPEAKER_02: we want to promise that the investors should not worry because we also looking
• 25:42
  SPEAKER_02: at how sustainable is this dividend payout,
• 25:46
  SPEAKER_02: you know, supposed to play going into the future.
• 25:48
  SPEAKER_02: And we believe That if we implement these projects going forward,
• 25:52
  SPEAKER_02: it will be very easy for us to have a sustainable dividend payout and even going
• 25:56
  SPEAKER_02: into the future,
• 25:57
  SPEAKER_02: be able to increase that dividend payout,
• 25:59
  SPEAKER_02: considering the projects that we'll be undertaking and the requirements of
• 26:03
  SPEAKER_02: the finances that will be required at that time.
• 26:06
  SPEAKER_00: I think that ties together very clearly with the decrease in finance income.
• 26:10
  SPEAKER_00: So I think you're deploying,
• 26:12
  SPEAKER_00: but then for the future,
• 26:13
  SPEAKER_00: do you have a timeframe within which then you might not be able to need
• 26:18
  SPEAKER_00: the dividends from the investors because some of them rely on it.
• 26:20
  SPEAKER_00: Could they expect that this in the company, they would have a bit of reprieve in that regard?
• 26:25
  SPEAKER_02: I think Eric is good to be optimistic and looking at the fundamentals and
• 26:29
  SPEAKER_02: the projects that we are undertaking,
• 26:31
  SPEAKER_02: we can comfortably assure our investors that these dividends will be sustained going
• 26:36
  SPEAKER_02: into the future.
• 26:37
  SPEAKER_02: So we don't want again to have a situation where in
• 26:41
  SPEAKER_02: the future we are decreasing these dividends.
• 26:43
  SPEAKER_02: We want to ensure that going into the future,
• 26:45
  SPEAKER_02: we're generating enough revenues and we work efficiently and be able
• 26:50
  SPEAKER_02: to build our profitability going into the future.
• 26:53
  SPEAKER_02: And that will definitely work out to better dividend payout going forward.
• 26:58
  SPEAKER_00: Someone is asking that Kenjin has been a bit slow in terms of bringing
• 27:02
  SPEAKER_00: in bond additional power plant.
• 27:03
  SPEAKER_00: And that additional power, I think, is growing slower than demand is growing in the country.
• 27:09
  SPEAKER_00: How do you respond to that concerned investor?
• 27:12
  SPEAKER_02: I think that is a true observation that,
• 27:14
  SPEAKER_02: in fact,
• 27:15
  SPEAKER_02: when you look at what we have been able to do, Kenjen,
• 27:18
  SPEAKER_02: I think we are talking about the last time we injected additional megawatts into
• 27:23
  SPEAKER_02: the green, perhaps was in the year 2021.
• 27:26
  SPEAKER_02: We embarked immediately on rebuilding,
• 27:29
  SPEAKER_02: as I had indicated earlier, one of our oldest geothermal power plant.
• 27:33
  SPEAKER_02: And it has taken us a bit of time,
• 27:34
  SPEAKER_02: but we are happy that now, We have been able to put it into the grid.
• 27:39
  SPEAKER_02: Whereas it was generating 45 MW initially, now it is generating 63 MW.
• 27:44
  SPEAKER_02: That is an indication that going forward, we are looking at sweating our assets that we have.
• 27:49
  SPEAKER_02: The same geothermal wells that were generating 45 MW are now going to generate 63 MW.
• 27:55
  SPEAKER_02: That is a positive and very impactful growth in our case.
• 27:58
  SPEAKER_02: And we believe that is the way to go.
• 28:00
  SPEAKER_02: And again, as I mentioned, we are looking at alternative sources.
• 28:03
  SPEAKER_02: We are looking at wind power generation.
• 28:07
  SPEAKER_02: We are in Marsabit,
• 28:08
  SPEAKER_02: where we have already carried out feasibility study,
• 28:10
  SPEAKER_02: and we believe that will also come and support the growth in our revenues.
• 28:15
  SPEAKER_02: We have mentioned about the solar, which we are building among our hydropower plants.
• 28:21
  SPEAKER_02: Again, this will be complemented.
• 28:23
  SPEAKER_02: And how we are working it out is to ensure that during the day when we have
• 28:27
  SPEAKER_02: the sunlight, we shall use this solar power plant to generate power.
• 28:30
  SPEAKER_02: And we conserve the water for the needed times in the evening when the power demand goes up.
• 28:36
  SPEAKER_02: I would want to inform these investors that the way the demand of power
• 28:40
  SPEAKER_02: in this country is that there is a very heavy increase in demand in the evening
• 28:44
  SPEAKER_02: from around 6 to 10 o'clock.
• 28:48
  SPEAKER_02: We experience very heavy demand.
• 28:50
  SPEAKER_02: And when you look at our portfolio in the power generation,
• 28:54
  SPEAKER_02: we have quite a substantial value of renewable,
• 28:57
  SPEAKER_02: the variable renewables of the wind and the solar.
• 28:59
  SPEAKER_02: And that's why for ourselves, we are being very strategic.
• 29:02
  SPEAKER_02: We want to have our solar power plant among our hydro so that they can complement each other.
• 29:06
  SPEAKER_02: I don't see any challenge.
• 29:08
  SPEAKER_02: We should be able to ensure that our organization continues to grow
• 29:13
  SPEAKER_02: and build our portfolio as we go forward.
• 29:16
  SPEAKER_00: A curious question for me,
• 29:17
  SPEAKER_00: in terms of solar, how come the country has not developed that robustly?
• 29:22
  SPEAKER_00: I see a lot of companies very regularly also announcing that they are launching
• 29:26
  SPEAKER_00: a solar plant at their factories and all.
• 29:30
  SPEAKER_00: How come as a country we've not been very big yet rely on the equator and
• 29:33
  SPEAKER_00: then we have some of the best supply in terms of solar and consistent supply,
• 29:38
  SPEAKER_00: so to speak?
• 29:39
  SPEAKER_00: How come we've not developed that historically, or at least for Kenjane on its part?
• 29:44
  SPEAKER_02: I think, Eric, that is an important question.
• 29:46
  SPEAKER_02: And I think you have heard me talk about variable renewable.
• 29:50
  SPEAKER_02: Solar is very variable.
• 29:52
  SPEAKER_02: Depends on the weather of the day.
• 29:53
  SPEAKER_02: The technology that is available is that when the clouds come over the power plant,
• 29:58
  SPEAKER_02: the power dips.
• 29:59
  SPEAKER_02: The same thing plays in the wind.
• 30:01
  SPEAKER_02: Depends also on weather.
• 30:03
  SPEAKER_02: That informs the reason why,
• 30:05
  SPEAKER_02: as in Kenjin,
• 30:06
  SPEAKER_02: we specifically focused on base node power,
• 30:09
  SPEAKER_02: because that is what assures the consumers that there is steady supply.
• 30:15
  SPEAKER_02: And of course,
• 30:15
  SPEAKER_02: now that we are thinking that technology The technologies have come
• 30:19
  SPEAKER_02: where we are able to store these variable renewables in battery storage,
• 30:24
  SPEAKER_02: in also what we call pumped storage.
• 30:27
  SPEAKER_02: I once visited one of the conferences and I had people talking
• 30:31
  SPEAKER_02: about melted salt storage and people are doing research and therefore it means
• 30:36
  SPEAKER_02: that solar And the wind will therefore continue being stable as we go into
• 30:41
  SPEAKER_02: the future as we develop these new technologies on how you can be able
• 30:45
  SPEAKER_02: to store this power.
• 30:46
  SPEAKER_02: So that has actually been the reason why we have not gone full blast onto
• 30:51
  SPEAKER_02: the variable renewables just to ensure that we have the base load power
• 30:54
  SPEAKER_02: which Kenjen has played its part very effectively.
• 30:58
  SPEAKER_00: A quick question also from another listener who's asking,
• 31:00
  SPEAKER_00: in the latest results,
• 31:02
  SPEAKER_00: they didn't see AeroCraft 6 and 7 being mentioned as key medium-term projects in
• 31:07
  SPEAKER_00: the recent results.
• 31:09
  SPEAKER_00: He's asking about the status of the two projects and
• 31:11
  SPEAKER_00: whether their implementation timelines or priority has changed.
• 31:15
  SPEAKER_02: Maybe what I can say is these are projects that are still in the pipeline.
• 31:19
  SPEAKER_02: A number of things are yet to be firmed up.
• 31:23
  SPEAKER_02: And it's not that we are letting them go.
• 31:25
  SPEAKER_02: Perhaps we don't want to talk about them this financial year.
• 31:28
  SPEAKER_02: But going into the future, definitely you'll be seeing the Ocaria 6 and Ocaria 2nd.
• 31:33
  SPEAKER_00: And then when you look at Kenya's generation of electricity,
• 31:36
  SPEAKER_00: it's not enough to cover the demand.
• 31:38
  SPEAKER_00: And there's quite a bit of imports coming from Ethiopia and Tanzania.
• 31:42
  SPEAKER_00: And I think Tanzania is quite developed in that market.
• 31:44
  SPEAKER_00: I think things that you're learning from those markets generally are also informing
• 31:48
  SPEAKER_00: the way yourself are going to plan for more electricity generation in the country.
• 31:53
  SPEAKER_00: And how do you see that energy mix evolving over the next decade,
• 31:56
  SPEAKER_00: especially for Kenya, from your personal perspective?
• 31:59
  SPEAKER_02: I think when you look at our neighboring countries,
• 32:01
  SPEAKER_02: for example,
• 32:02
  SPEAKER_02: what you have mentioned,
• 32:03
  SPEAKER_02: Ethiopia,
• 32:04
  SPEAKER_02: they have made a deliberate decision to go full blast and add their generation
• 32:10
  SPEAKER_02: by leap and bound.
• 32:12
  SPEAKER_02: The same thing has happened to Tanzania.
• 32:14
  SPEAKER_02: We also have had Uganda building a hydropower plant, which is 600 megawatts.
• 32:19
  SPEAKER_02: And I think for a long time in Kenya,
• 32:20
  SPEAKER_02: we have been a bit hesitant to embark on mega projects where you're talking
• 32:25
  SPEAKER_02: of multiples of hundreds of megawatts.
• 32:28
  SPEAKER_02: But as you have heard from our strategy,
• 32:31
  SPEAKER_02: we are not shy anymore into embarking on two major projects.
• 32:35
  SPEAKER_02: We have taken on board comfortably after we were appointed owner operator for
• 32:39
  SPEAKER_02: the first nuclear power plant, 2000 megawatts at once.
• 32:43
  SPEAKER_02: We have also mentioned about the high ground force,
• 32:45
  SPEAKER_02: which is 700 mw, going into the future because of our learnings from our neighbors.
• 32:49
  SPEAKER_02: And Eric,
• 32:50
  SPEAKER_02: you're aware that we now have an integrated system in the region,
• 32:53
  SPEAKER_02: the East African Power Pool,
• 32:55
  SPEAKER_02: where the countries are looking at importing power from each other,
• 32:59
  SPEAKER_02: depending on who is producing what, at what time.
• 33:02
  SPEAKER_02: And that will be very critical because instead of country investing
• 33:06
  SPEAKER_02: on what somebody else has already invested in,
• 33:08
  SPEAKER_02: we can, for example, focus on what we know best ourselves.
• 33:13
  SPEAKER_02: For example, we are very strong in geothermal.
• 33:15
  SPEAKER_02: We can put a lot of resources in geothermal.
• 33:18
  SPEAKER_02: And therefore ensure that other countries in the neighborhood,
• 33:21
  SPEAKER_02: if the batteries of the weather affect the hydropower generation,
• 33:25
  SPEAKER_02: then we still can support them using our geosarm.
• 33:28
  SPEAKER_02: So going forward,
• 33:29
  SPEAKER_02: we have learned a good lesson and we should be able also to see our position
• 33:33
  SPEAKER_02: where Kenya becomes an ultimate exporter of power to the region.
• 33:38
  SPEAKER_00: Yeah, but we're eating up the power as much as quickly as we get it.
• 33:41
  SPEAKER_00: So perhaps we really need to ramp up that energy production from my viewpoint.
• 33:46
  SPEAKER_00: Did you agree?
• 33:47
  SPEAKER_02: I agree with you entirely, Harry.
• 33:49
  SPEAKER_02: That's why we are working very hard as the Kenyans to ensure that we participate
• 33:53
  SPEAKER_02: in building that power generation to the levels of our neighboring countries.
• 33:57
  SPEAKER_00: Another listener question,
• 33:59
  SPEAKER_00: which also ties into a question I had,
• 34:01
  SPEAKER_00: was the government has been speaking about reducing their stake in the Kenyans so
• 34:05
  SPEAKER_00: that they can allow the Kenyans to own a bigger piece of that pie.
• 34:09
  SPEAKER_00: What's the status of that?
• 34:10
  SPEAKER_00: Is that something that in the near term investors who should look out for?
• 34:14
  SPEAKER_00: Because they really want to own a bigger piece of that pie.
• 34:17
  SPEAKER_02: That is interesting to hear.
• 34:18
  SPEAKER_02: The private investors are interested in owning a piece of pie from Kenjin.
• 34:23
  SPEAKER_02: But I think that one will depend on the government position.
• 34:25
  SPEAKER_02: They still own 70%, the 30% to the private investors.
• 34:30
  SPEAKER_02: That is a decision that will be made at the level of the government.
• 34:33
  SPEAKER_02: And I believe that is one of the reasons why they are bringing in
• 34:37
  SPEAKER_02: the government-owned enterprise.
• 34:39
  SPEAKER_02: We have been put under the government-owned enterprise act so
• 34:42
  SPEAKER_02: that we can improve our efficiency, be able to record more profitability.
• 34:47
  SPEAKER_02: And arising from that, perhaps we'll see the value of Kenyan shares growing.
• 34:53
  SPEAKER_02: And if the government has an owner,
• 34:54
  SPEAKER_02: perhaps when it gets to a reasonable value,
• 34:57
  SPEAKER_02: maybe they can opt out and allow other Kenyans and other investors to come in.
• 35:02
  SPEAKER_00: All right.
• 35:03
  SPEAKER_00: And then one of the proud things I think I've seen in the recent past is
• 35:06
  SPEAKER_00: that you're exporting expertise to other countries.
• 35:09
  SPEAKER_00: Could you speak a bit about that?
• 35:10
  SPEAKER_00: And there was,
• 35:11
  SPEAKER_00: I think, Tanzania, East Latini have seen something like that in your press releases.
• 35:15
  SPEAKER_00: Could you tell us a bit more about that and what that means?
• 35:18
  SPEAKER_00: Is it a new revenue stream that you're also considering in terms of consultancy
• 35:22
  SPEAKER_00: to some of these countries that are also seeking to develop?
• 35:24
  SPEAKER_00: Tell us a bit about that.
• 35:26
  SPEAKER_02: Thank you.
• 35:26
  SPEAKER_02: Thank you very much for that question, Eric,
• 35:28
  SPEAKER_02: because after the independent power producers were allowed to come into the market
• 35:33
  SPEAKER_02: and we have seen our market share shrink over time,
• 35:37
  SPEAKER_02: we have actually looked around and decided to consider diversification.
• 35:42
  SPEAKER_02: You should not put all your eggs in one basket because of course,
• 35:46
  SPEAKER_02: if the market is shrinking, Then it will mean that our revenues are threatened.
• 35:51
  SPEAKER_02: And therefore,
• 35:51
  SPEAKER_02: that's why we have decided deliberately to look at the skills,
• 35:56
  SPEAKER_02: the capabilities that we have and export that to the neighboring countries.
• 36:00
  SPEAKER_02: You have heard me talk about Kenya being number one in Africa in Geodamo generation.
• 36:05
  SPEAKER_02: So over years,
• 36:06
  SPEAKER_02: since we started harnessing Geodamo,
• 36:09
  SPEAKER_02: we have been in that area for more than 50 years.
• 36:12
  SPEAKER_02: So we have a lot of experience in that field.
• 36:15
  SPEAKER_02: And we have been in Ethiopia.
• 36:16
  SPEAKER_02: We have done wells for Ethiopia.
• 36:19
  SPEAKER_02: We have been in Djibouti.
• 36:21
  SPEAKER_02: We are currently in the Tanzania Ngozi area where we are still working out
• 36:26
  SPEAKER_02: on drilling exploration well to confirm whether geolamo potential is viable
• 36:31
  SPEAKER_02: and therefore will help them also to do production wells
• 36:34
  SPEAKER_02: and finally establish geolamo power plants.
• 36:36
  SPEAKER_02: We have been in Eswatini,
• 36:38
  SPEAKER_02: we did exploration,
• 36:39
  SPEAKER_02: scientific exploration, and we were able to confirm they have a potential.
• 36:43
  SPEAKER_02: We are still in engagement with them to see how we can do the exploration drilling
• 36:47
  SPEAKER_02: for them as well.
• 36:48
  SPEAKER_02: And finally, we can also do the production.
• 36:50
  SPEAKER_02: So what it means therefore is that we have developed an alternative avenue
• 36:56
  SPEAKER_02: for generating alternative revenues.
• 36:58
  SPEAKER_02: And that is very important for us so that we can be able to assure ourselves that In
• 37:03
  SPEAKER_02: the case there is a dip in the revenue from power generation,
• 37:07
  SPEAKER_02: we have a support arm from the alternative revenues.
• 37:10
  SPEAKER_00: That's good.
• 37:11
  SPEAKER_00: And now that progressing,
• 37:12
  SPEAKER_00: what's the feedback you get from the various countries that you're going to?
• 37:15
  SPEAKER_02: In fact, very positive feedback.
• 37:18
  SPEAKER_02: I can assure you we have gone even as far as beyond the African continent.
• 37:22
  SPEAKER_02: We have been to the kingdom of Bhutan.
• 37:25
  SPEAKER_02: I'm sure they must have read our story.
• 37:27
  SPEAKER_02: And they invited us to do a reconnaissance visit.
• 37:30
  SPEAKER_02: We were able to go there and confirm that they also have a potential.
• 37:34
  SPEAKER_02: We are in discussions as well to see how we can help them harness their geothermal potential.
• 37:38
  SPEAKER_02: So there is very positive response.
• 37:40
  SPEAKER_02: Our neighboring countries like Zambia have also engaged us and we are
• 37:45
  SPEAKER_02: in constant engagement to see how also we can help them to harness their geothermal.
• 37:49
  SPEAKER_02: And there are quite a number of countries who are in the line of fire in
• 37:53
  SPEAKER_02: the Rift Valley where we can be able to help them
• 37:55
  SPEAKER_02: to harness their geothermal potential.
• 37:58
  SPEAKER_00: There's another question from a listener.
• 37:59
  SPEAKER_00: I think this one is very keenly following all your projects.
• 38:01
  SPEAKER_00: They want to know the Nabuyole hydroelectric power plant,
• 38:05
  SPEAKER_00: the status,
• 38:06
  SPEAKER_00: and also asking about the rehabilitations that you're doing around all career one,
• 38:10
  SPEAKER_00: the upgrade of Google hydropower plant.
• 38:13
  SPEAKER_00: So he's asking,
• 38:14
  SPEAKER_00: because of these rehabilitations that you're doing,
• 38:16
  SPEAKER_00: are there plans to modernize the Seven Fox hydropower stations to use newer,
• 38:21
  SPEAKER_00: more efficient and higher capacity turbines?
• 38:23
  SPEAKER_02: A good question from that interested the party on what we are doing.
• 38:27
  SPEAKER_02: And thank you, Eric, for bringing that up.
• 38:30
  SPEAKER_02: The hydropower plants, they have been in existence for many years.
• 38:33
  SPEAKER_02: Some of them started way back, even before independence.
• 38:37
  SPEAKER_02: And we have been running them over the years.
• 38:39
  SPEAKER_02: We have actually redeveloped most of them.
• 38:42
  SPEAKER_02: And we can comfortably say we consistently look out for the development of
• 38:46
  SPEAKER_02: the hydropower plants.
• 38:48
  SPEAKER_02: And that's why they have served us over these many years.
• 38:52
  SPEAKER_02: And we are also looking into rehabilitating them into the future because looking at
• 38:57
  SPEAKER_02: that investment, the dams are still very sound.
• 39:00
  SPEAKER_02: We are also doing some feasibility studies to confirm what is the status currently
• 39:04
  SPEAKER_02: and what would we require if we want these hydro power plants to serve us for
• 39:09
  SPEAKER_02: the next say 20 to 40 years.
• 39:11
  SPEAKER_02: But mentioning about all career one, it is very true.
• 39:15
  SPEAKER_02: We have now been able to redevelop all career one, which was the last machine.
• 39:19
  SPEAKER_02: There were three machines there.
• 39:20
  SPEAKER_02: The last one was commissioned in 1984.
• 39:23
  SPEAKER_02: If you look at the number of years that one has served, it's over 40 years.
• 39:27
  SPEAKER_02: So we have rebuilt that.
• 39:29
  SPEAKER_02: And as I mentioned earlier, again,
• 39:31
  SPEAKER_02: out of the 45 MW that we were able to generate before,
• 39:34
  SPEAKER_02: we are now going to generate 63.
• 39:36
  SPEAKER_02: You go to Gogo, which is a small hydropower plant in Migori.
• 39:40
  SPEAKER_02: This is currently a 2 MW because of the age.
• 39:44
  SPEAKER_02: I think this is a power plant that dates in the year 1950s.
• 39:48
  SPEAKER_02: It's quite old.
• 39:49
  SPEAKER_02: The technology is out of the market.
• 39:51
  SPEAKER_02: In fact,
• 39:51
  SPEAKER_02: each time we have a breakdown in Gogo,
• 39:53
  SPEAKER_02: we have to utilize the reverse engineering for us to be able to put it back.
• 39:58
  SPEAKER_02: And therefore we are again Redeveloping this,
• 40:00
  SPEAKER_02: we have gotten the funding and we are in the process of finalizing how we can get
• 40:04
  SPEAKER_02: an EPC contractor to be able to build us a new hydro power plant in Gogo,
• 40:09
  SPEAKER_02: which will generate 8.6 MW.
• 40:11
  SPEAKER_02: Using the same river,
• 40:13
  SPEAKER_02: same water,
• 40:13
  SPEAKER_02: but because of the modern and the way we are going to build it currently,
• 40:17
  SPEAKER_02: it will generate 8.6 MW.
• 40:19
  SPEAKER_02: Of course, we're looking around at other old installations that have lived to their life.
• 40:25
  SPEAKER_02: And again,
• 40:26
  SPEAKER_02: we are going to also redevelop them so that we can support our generation
• 40:31
  SPEAKER_02: and support our grid in this country going forward.
• 40:34
  SPEAKER_00: Give us a bit of information about the Olkaya Green Energy Park that you have been building.
• 40:39
  SPEAKER_00: How is that in terms of occupancy and what is the interest generally on that particular asset?
• 40:44
  SPEAKER_02: That is actually, Eric, our new frontier.
• 40:46
  SPEAKER_02: And we believe that is a game changer.
• 40:49
  SPEAKER_02: I think you have heard the world is focused on green energy and there are challenges
• 40:55
  SPEAKER_02: to industries to be able to make their value addition using green energy.
• 41:01
  SPEAKER_02: And that is what we looked at.
• 41:02
  SPEAKER_02: And we decided that we need,
• 41:04
  SPEAKER_02: even as the government is establishing special economic zones across the country,
• 41:08
  SPEAKER_02: This particular economic zone or the green energy pack that you have done
• 41:12
  SPEAKER_02: in Olkaria will be favored in the sense that it will get 100% green energy
• 41:17
  SPEAKER_02: from our geothermal power plants.
• 41:20
  SPEAKER_02: Currently,
• 41:20
  SPEAKER_02: we have five interested parties that we have already signed with,
• 41:25
  SPEAKER_02: and some of them are in the process of setting up factories.
• 41:28
  SPEAKER_02: The green fertilizer power plant is coming on very well.
• 41:31
  SPEAKER_02: It is also to be established within our green energy park.
• 41:36
  SPEAKER_02: We have somebody who is going to do electric vehicles.
• 41:39
  SPEAKER_02: We have somebody setting up a data center.
• 41:43
  SPEAKER_02: We have somebody who is actually going to be perhaps our very first client
• 41:48
  SPEAKER_02: who is going to produce fish food.
• 41:50
  SPEAKER_02: And that is a very interesting one that we signed an agreement just the other day
• 41:54
  SPEAKER_02: and is moving very fast.
• 41:55
  SPEAKER_02: We are in the process of building The power line to be able to supply him
• 41:58
  SPEAKER_02: with power perhaps by mid next year.
• 42:02
  SPEAKER_02: So it has come up very well.
• 42:04
  SPEAKER_02: And we believe this is an alternative source of our revenues
• 42:07
  SPEAKER_02: where we shall be selling power directly to these clients.
• 42:10
  SPEAKER_02: And arising from that direct delivery of power to them is going to be delivered at lower costs.
• 42:17
  SPEAKER_02: We are going to assure them of consistent power supply because it is
• 42:21
  SPEAKER_02: a hydro geothermal power plants, which are very consistent in generation.
• 42:25
  SPEAKER_02: And we can assure them that the power will be available, in fact, 100% of the time.
• 42:31
  SPEAKER_00: I think that's a solid one.
• 42:32
  SPEAKER_00: Do you plan on maybe doing similar projects in other parts of the country?
• 42:37
  SPEAKER_02: Yes, Eric,
• 42:38
  SPEAKER_02: we have looked at other areas,
• 42:40
  SPEAKER_02: like for example, where we have our major hydro power plants.
• 42:44
  SPEAKER_02: Again, if we get to a situation where we have excess power there,
• 42:48
  SPEAKER_02: we should also look at a way of establishing another energy park
• 42:53
  SPEAKER_02: that we can attract clients to come and set up their industries in that area.
• 42:58
  SPEAKER_02: We are also looking at wherever we have our energy Power plants,
• 43:02
  SPEAKER_02: and we believe we have excess power, we should be able to do the same.
• 43:05
  SPEAKER_02: Looking at a nuclear power plant,
• 43:07
  SPEAKER_02: for example,
• 43:07
  SPEAKER_02: that will come up in Siaya,
• 43:09
  SPEAKER_02: it will be very interesting,
• 43:10
  SPEAKER_02: for example,
• 43:11
  SPEAKER_02: to now look at clients coming to establish their factories in Siaya,
• 43:16
  SPEAKER_02: and that will reduce on the losses that come along with delivering this power
• 43:20
  SPEAKER_02: over long distances.
• 43:22
  SPEAKER_02: So this is a very encouraging new frontier,
• 43:25
  SPEAKER_02: and we believe since we can see a lot of success
• 43:28
  SPEAKER_02: in our geothermal green energy park,
• 43:30
  SPEAKER_02: Then it means we can replicate this in the other areas.
• 43:34
  SPEAKER_00: And then there's a listener also asking,
• 43:36
  SPEAKER_00: there was a recent report that can get purchased at the Nairobi head office from
• 43:39
  SPEAKER_00: the Standard Chartered Pension Fund.
• 43:42
  SPEAKER_00: Did that have any impact on the dividend reduction and what was
• 43:45
  SPEAKER_00: the plan around purchasing the building?
• 43:48
  SPEAKER_02: I think a very good question from that Kenyan.
• 43:51
  SPEAKER_02: And if you look at it, we have been renting that premises.
• 43:55
  SPEAKER_02: And we did our analysis and looked at what would it mean if we become the landlord.
• 44:00
  SPEAKER_02: And there is a lot of benefits because it means now we are anchored comfortably in
• 44:06
  SPEAKER_02: that building.
• 44:07
  SPEAKER_02: We can comfortably now be able to ensure that we are there comfortably
• 44:13
  SPEAKER_02: to establish whatever kind of establishment that you would want to do around
• 44:17
  SPEAKER_02: that building.
• 44:18
  SPEAKER_02: The other important point that we looked at is
• 44:20
  SPEAKER_02: because our retirement benefit scheme was requiring support every time
• 44:25
  SPEAKER_02: from ourselves to ensure that they remain liquid.
• 44:28
  SPEAKER_02: And being the sponsor,
• 44:30
  SPEAKER_02: we were required to put in funds to the RBS every year to support
• 44:34
  SPEAKER_02: the benefit scheme.
• 44:36
  SPEAKER_02: And therefore,
• 44:37
  SPEAKER_02: that is something else that we looked at and we believe that was a beautiful move
• 44:41
  SPEAKER_02: that the board decided to make that decision for us to acquire that bill.
• 44:45
  SPEAKER_02: It never affected much of our revenues.
• 44:49
  SPEAKER_02: What perhaps it has affected is our assets because this is an asset that has come in.
• 44:54
  SPEAKER_02: I have my general manager here who is in charge of finance
• 44:57
  SPEAKER_02: and I'm sure he can elaborate on that more.
• 45:00
  SPEAKER_02: Yeah.
• 45:00
  SPEAKER_01: Thank you, Eddie.
• 45:02
  SPEAKER_01: This is David Wangi.
• 45:03
  SPEAKER_01: On DB, as my CEO has elaborated,
• 45:09
  SPEAKER_01: it is a requirement that DB scheme must be kept liquid,
• 45:14
  SPEAKER_01: and in case there is a deficit, it should be made good by the sponsor.
• 45:19
  SPEAKER_01: Balancing with that,
• 45:20
  SPEAKER_01: also we needed our premises,
• 45:23
  SPEAKER_01: and also we don't want also to Use the same cash to give to the DB scheme.
• 45:28
  SPEAKER_01: So it informed that decision.
• 45:31
  SPEAKER_01: And with that, and even when you look at our asset, it came on list in our balance sheet.
• 45:37
  SPEAKER_01: The other time it was at the lease.
• 45:39
  SPEAKER_01: So there was that balancing and that's why you couldn't see impact when you look
• 45:43
  SPEAKER_01: at balance sheet overall.
• 45:45
  SPEAKER_00: All right, thanks.
• 45:46
  SPEAKER_00: A quick question for you before you go.
• 45:47
  SPEAKER_00: I wanted to ask,
• 45:48
  SPEAKER_00: are there any aspects maybe of the financials that maybe you'd want to emphasize
• 45:52
  SPEAKER_00: to our investors,
• 45:53
  SPEAKER_00: especially from the FY26 results that you want investors to take away from today
• 45:58
  SPEAKER_00: or three or four things that you would want investors to remember?
• 46:01
  SPEAKER_01: Much has been said,
• 46:02
  SPEAKER_01: but I only reiterate that when I look at our financials,
• 46:06
  SPEAKER_01: the base in terms of the profitability on the track and if you look at the history,
• 46:12
  SPEAKER_01: we have been growing even without Bringing on board a power plant,
• 46:17
  SPEAKER_01: but we have been able to grow revenue due to efficiency,
• 46:20
  SPEAKER_01: which is the focus of the organization in terms of balance sheet to finance future
• 46:27
  SPEAKER_01: or to become like a security when we are borrowing and all that.
• 46:31
  SPEAKER_01: We are stable and there is future, even the issue of dividends.
• 46:36
  SPEAKER_01: We are looking ahead.
• 46:38
  SPEAKER_01: They are sustainable since all the bases.
• 46:41
  SPEAKER_01: Or the foundation in terms of the looking from finance perspective, we are good.
• 46:47
  SPEAKER_00: Thank you so much.
• 46:48
  SPEAKER_00: Maybe we can get back to Eugenia and then
• 46:50
  SPEAKER_02: you can wind up for us.
• 46:51
  SPEAKER_02: I think most of the questions are being covered.
• 46:53
  SPEAKER_00: Now, coming towards the end,
• 46:55
  SPEAKER_00: now that you've wrapped up some of those results,
• 46:57
  SPEAKER_00: I wanted to ask you about transition.
• 46:59
  SPEAKER_00: I think there's been an advertisement put out in terms of saying
• 47:02
  SPEAKER_00: that your time is coming to an end.
• 47:04
  SPEAKER_00: I wanted to ask, why not prolong that?
• 47:07
  SPEAKER_00: Are you applying or are you exiting, so to speak?
• 47:10
  SPEAKER_00: What can you tell us a bit about your journey so far and what your plans are?
• 47:15
  SPEAKER_02: Very interesting question.
• 47:16
  SPEAKER_02: Eric, I have been in employment for quite a long time.
• 47:20
  SPEAKER_02: And if you remember, I talked about working in Kenya Power for more than 30 years.
• 47:25
  SPEAKER_02: I have now been in Kenya for three years.
• 47:27
  SPEAKER_02: And if you add up those numbers,
• 47:30
  SPEAKER_02: you'll be able to see that I'm actually almost coming to my retirement age.
• 47:35
  SPEAKER_02: So I'll be attaining my retirement age of 60 years.
• 47:40
  SPEAKER_02: And we believe that is a good thing.
• 48:03
  SPEAKER_02: It will maintain stability of the organization because by the time I exit,
• 48:07
  SPEAKER_02: I will have handed over comfortably and shared my vision.
• 48:10
  SPEAKER_02: And that person will also come with their vision and combined with what I have,
• 48:14
  SPEAKER_02: we have been able to develop together with the other employees in Kenjin
• 48:17
  SPEAKER_02: and move our organization to the next level.
• 48:20
  SPEAKER_02: So it is deliberate that we decided we must get somebody whom we shall hand over in good time.
• 48:26
  SPEAKER_00: Maybe as you wind up that,
• 48:28
  SPEAKER_00: could you tell us a bit about your reflection on your journey and maybe some of
• 48:31
  SPEAKER_00: the things that you would want the younger people to know
• 48:34
  SPEAKER_00: as they begin their careers in various fields,
• 48:36
  SPEAKER_00: not just the engineering field, maybe finance or any other profession.
• 48:40
  SPEAKER_00: What are some reflections that you've had along a life's journey that you'd want
• 48:43
  SPEAKER_00: to share with us?
• 48:44
  SPEAKER_02: I think, Eric,
• 48:45
  SPEAKER_02: it's important for anyone who would want to grow in their career to,
• 48:50
  SPEAKER_02: first of all, develop a consistent, disciplined culture.
• 48:55
  SPEAKER_02: And what I mean is if you have embarked on something,
• 48:59
  SPEAKER_02: you must put your heart into it and ensure that you do things well.
• 49:05
  SPEAKER_02: You do them with integrity, utmost integrity.
• 49:08
  SPEAKER_02: You focus on ensuring that whatever you are doing, it is for the good of the country.
• 49:14
  SPEAKER_02: And that will drive you.
• 49:16
  SPEAKER_02: When you see a country benefiting from what you have been able to do,
• 49:20
  SPEAKER_02: then it gives you a lot of self-fulfillment.
• 49:23
  SPEAKER_02: So I would encourage the young ones to look at,
• 49:26
  SPEAKER_02: of course, there is the element of do what you love to do.
• 49:30
  SPEAKER_02: Personally,
• 49:31
  SPEAKER_02: in my life,
• 49:32
  SPEAKER_02: and I thank my earlier employer,
• 49:35
  SPEAKER_02: KPLC, they drew me into the area of dealing with customers and dealing with clients.
• 49:40
  SPEAKER_02: And that is something I enjoyed doing.
• 49:42
  SPEAKER_02: And when I finally came to Kenjin,
• 49:44
  SPEAKER_02: I have enjoyed interacting with A number of stakeholders that are working with us
• 49:49
  SPEAKER_02: to ensure that Kenjin is successful going into the future.
• 49:52
  SPEAKER_02: So consistency, a discipline on what you do and having a focused mind.
• 49:58
  SPEAKER_02: And of course,
• 49:58
  SPEAKER_02: having strong ethos,
• 50:00
  SPEAKER_02: values that you live with and you live by that even if somebody tries
• 50:05
  SPEAKER_02: to distract you from what you're doing,
• 50:07
  SPEAKER_02: as long as you believe that is the right thing to do,
• 50:10
  SPEAKER_02: you continue pursuing it and not necessarily To benefit you,
• 50:14
  SPEAKER_02: but to benefit the ecosystem as a whole.
• 50:17
  SPEAKER_02: I actually pride myself and I'm very happy when I see something
• 50:21
  SPEAKER_02: that I have done has been able to help others.
• 50:24
  SPEAKER_02: So in my short stay in Kenjen,
• 50:26
  SPEAKER_02: I would call it short because I have been in employment for more than 30 years.
• 50:30
  SPEAKER_02: So the three years,
• 50:32
  SPEAKER_02: what we have been able to do,
• 50:33
  SPEAKER_02: setting up strategy for the next 10 years and laying the foundation and agreeing
• 50:38
  SPEAKER_02: that this is the direction that we want to go.
• 50:41
  SPEAKER_02: And I've encouraged my team.
• 50:42
  SPEAKER_02: That even when I'm out, they should focus and pursue what we have been looking at.
• 50:47
  SPEAKER_02: Let them maintain that strategy as a true north.
• 50:50
  SPEAKER_02: Of course,
• 50:51
  SPEAKER_02: considering that environment keeps on changing,
• 50:53
  SPEAKER_02: you cannot again say that since I've decided I have to go this direction.
• 50:57
  SPEAKER_02: If something happens along the way,
• 50:59
  SPEAKER_02: you have to continue scanning the environment and you'll be comfortable
• 51:03
  SPEAKER_02: when you change your mind because the environment has changed that you're able
• 51:07
  SPEAKER_02: to survive the environment.
• 51:09
  SPEAKER_00: Maybe you can conclude for us the spaces now and tell us a bit about anything
• 51:13
  SPEAKER_00: that you want investors to keep in mind.
• 51:15
  SPEAKER_00: I think this was your last year in terms of financial results.
• 51:18
  SPEAKER_00: So you can reflect on your journey and then tell us a bit
• 51:22
  SPEAKER_00: about what investors should take away from the FY26 results as we conclude.
• 51:26
  SPEAKER_02: I think what I can say, Eric,
• 51:27
  SPEAKER_02: is that we have actually been able to sustain the growth In returns for Kenjin over
• 51:34
  SPEAKER_02: the three years that I have been around.
• 51:37
  SPEAKER_02: We saw the growth of profitability over the three years.
• 51:41
  SPEAKER_02: This year,
• 51:42
  SPEAKER_02: of course,
• 51:43
  SPEAKER_02: that we are talking about,
• 51:44
  SPEAKER_02: we have maintained almost similar profitability with the previous year.
• 51:48
  SPEAKER_02: And of course, we have been able to see there are quite impelling reasons why that happened.
• 51:54
  SPEAKER_02: But looking at the fundamentals, the organization can only move up.
• 51:59
  SPEAKER_02: We have lined up very important projects, carried out feasibility study.
• 52:04
  SPEAKER_02: We have been able to confirm that these projects are viable.
• 52:07
  SPEAKER_02: And I actually forgot to talk about Nabi Yole.
• 52:09
  SPEAKER_02: I think you had talked about it.
• 52:11
  SPEAKER_02: Now, Buyeole,
• 52:11
  SPEAKER_02: we have already completed the feasibility study,
• 52:14
  SPEAKER_02: and that is a project that will also help the Western region.
• 52:17
  SPEAKER_02: You are aware that Western region has had the challenges in power,
• 52:20
  SPEAKER_02: and therefore, going forward, the projects that we have lined up.
• 52:25
  SPEAKER_02: If we persistently pursue them,
• 52:28
  SPEAKER_02: they will put Kenjin at a very good pedestal and of course generate important
• 52:34
  SPEAKER_02: and adequate revenues for the shareholders to enjoy market returns going into
• 52:40
  SPEAKER_02: the future.
• 52:41
  SPEAKER_00: All right.
• 52:41
  SPEAKER_00: Thank you so much, engineer, for the last hour or so of your time.
• 52:44
  SPEAKER_00: We are really appreciative of that and all the best in your retirement.
• 52:47
  SPEAKER_00: Eugene, tell us what you're going to do in retirement, by the way.
• 52:50
  SPEAKER_02: There are so many things that one can do.
• 52:52
  SPEAKER_02: With my experience,
• 52:53
  SPEAKER_02: of course,
• 52:53
  SPEAKER_02: I'll be able to help others and to be able to enjoy my experience in guiding them
• 52:58
  SPEAKER_02: and perhaps going to consultancy in the area of power generation
• 53:02
  SPEAKER_02: or power distribution.
• 53:04
  SPEAKER_02: I have gained a lot of experience in the area of oversight.
• 53:07
  SPEAKER_02: So it is possible that perhaps if there are organizations that are looking
• 53:12
  SPEAKER_02: for talent in oversighting what they are doing in the area of energy,
• 53:17
  SPEAKER_02: then perhaps I would be a front runner.
• 53:19
  SPEAKER_02: Thank you.
• 53:22
  SPEAKER_00: Thank you so much,
• 53:23
  SPEAKER_00: our listeners,
• 53:24
  SPEAKER_00: for joining us for this hour on a Friday evening,
• 53:26
  SPEAKER_00: taking one hour of your time to be able to discuss with us the results.
• 53:29
  SPEAKER_00: Thank you so much, Engineer, and Kwaheri for us.
• 53:32
  SPEAKER_00: You can say Kwaheri.
• 53:32
  SPEAKER_02: Thank you.
• 53:33
  SPEAKER_02: Thank you, Eric,
• 53:34
  SPEAKER_02: and thank you to everyone who has joined us this evening here in Kenya,
• 53:38
  SPEAKER_02: and I know there could be morning, whatever time it is, wherever we are logged in.
• 53:42
  SPEAKER_02: At Kenjen,
• 53:42
  SPEAKER_02: our focus remains clear to keep delivering reliable,
• 53:46
  SPEAKER_02: affordable and sustainable electricity.
• 53:48
  SPEAKER_02: And we talked about renewable energy while building the capacity and business
• 53:52
  SPEAKER_02: that will support Kenya's growth for the year to come.
• 53:55
  SPEAKER_02: And we remain focused on executing the G2G 2034 strategy,
• 53:59
  SPEAKER_02: creating lasting value for our shareholders,
• 54:02
  SPEAKER_02: and most importantly, Eric, serving the needs of the country.
• 54:05
  SPEAKER_02: Thank you.