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NAIROBI, Thursday November 25, 2021: Kenya Electricity Generating Company (KenGen) PLC has commenced drilling of the first of three geothermal wells in Djibouti setting in motion a Ksh.0.7 billion contract signed in February this year.

The drilling of the first well is expected to take about two months to complete as KenGen seeks to export the expertise and experience earned in Olkaria, Naivasha where the company has successfully drilled about 320 geothermal wells.

While making the announcement, KenGen Managing Director and CEO, Rebecca Miano said, “This is a historic moment for us and we are confident that our team on site will deliver the project within the contracted time and on budget despite the prevailing circumstances brought about by COVID-19 and security situation in the neighbouring Ethiopia.”

The CEO said KenGen had assigned a highly specialised multiskilled team to the project in the Horn of Africa country comprised of mechanical Engineers, drilling Engineers, project managers, drillers, cementing technicians and specialized welders among other key professionals in the geothermal development value chain.

With the drilling rig set up, KenGen is set to commence drilling of three geothermal wells for Djibouti Office of Geothermal Energy Development (ODDEG) over the next few months.

ODDEG Project Manager, Abdirasak Omar Moumin exuded confidence that KenGen would deliver the project as planned, adding that the Djiboutian team was looking forward to acquiring new knowledge from the Kenyan NSE-listed firm.

“We are happy with KenGen and learning a lot from the team on the ground. They have a long history and expertise in geothermal which makes them the best partners in implementing our geothermal dream,” said Mr. Moumin.

The Djiboutian venture is part of KenGen’s ambitious diversification strategy, in which the company is seeking to acquire new revenue streams by offering commercial drilling services, geothermal consulting and other related services across Africa.

This is the third mega geothermal drilling contract that KenGen is implementing in Africa. In October 2019, the company secured a Ksh.5.8 billion contract to drill 12 geothermal wells in Ethiopia. The contract with Ethiopia’s independent power producer Tulu Moye Geothermal Operations (TMGO) PLC includes installing a water supply system and equipment.

In February 2019, KenGen won a contract to drill geothermal wells for the Ethiopian Electric Company (EEP) in Aluto-Langano, Ethiopia. The contract is for the implementation of drilling rigs and accessories as well as rig operation and maintenance for drilling geothermal wells. It is financed by the World Bank through a loan to the Ethiopian Government.

Last week, KenGen announced that it had completed drilling the deepest geothermal well in the Aluto-Langano project reaching a depth of 3,000 meters, surpassing a target of 2,750 meters.

“We are happy to see our teams deliver the same level of success in the Horn of Africa as we do back home in Olkaria where we have also drilled several geothermal wells to depths of 3,000 meters,” said KenGen Ag. Geothermal Development Director, Peketsa Mangi.

Kenya is Africa’s number one geothermal energy producer and among top 10 in the world with an installed capacity of 863MW with KenGen contributing about 713MW. The country has an estimated potential of 10,000MW along the Rift Valley.

Ends.../

Note to Editor:

About KenGen

Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in Eastern Africa region with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.

Today, KenGen PLC has an installed generation capacity of 1,818MW, of which over 86% is drawn from green sources namely: Hydro (826MW), Geothermal (713MW), Thermal (253MW), and Wind (26MW).

For media queries please contact:

Frank D. Ochieng, Tel:0721816896

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Nairobi, November 11, 2021: Kenya Electricity Generating Company PLC (KenGen) has completed drilling the deepest geothermal well in Ethiopia reaching a depth of 3,000 meters, surpassing a target of 2,750 meters.

This marks the second of eight geothermal wells KenGen has been contracted to drill for the state-owned electricity producer, Ethiopia Electric Power Company which was delivered successfully amid COVID-19 pandemic.

“We are happy to see our teams deliver the same level of success in the Horn of Africa as we do back home in Olkaria where we have also drilled several geothermal wells to depths of 3,000 meters,” said Ag. Geothermal Development Director, Peketsa Mangi.

The KenGen team is optimistic that the project which is part of the company’s diversification strategy once completed will help catalyze economic development in the horn of Africa through provision of renewable energy while at the same time increasing access to electricity.

According to KenGen’s Finance and ICT Director, Dr. John Mudany, the NSE-listed firm has seen a significant growth in its revenues attributed to income from the projects in Ethiopia.

“Our revenue increased by 4% from Ksh.44 billion to about Ksh.46 billion in 2021 partly attributed to revenues from our diversification venture at Tulu Moye in Ethiopia,” said Dr. Mudany adding, “the ongoing geothermal drilling services in Tulu Moye contributed about Ksh.1.7 billion compared to only Ksh.440 million in the last financial year.”

In February 2019, KenGen won a contract to offer geothermal drilling services for EEP in the Aluto-Langano geothermal fields in Ethiopia.

At the same time, also in the Horn of Africa, under a contract signed in October 2019, KenGen has completed drilling two geothermal wells for Tulu Moye Geothermal Operations PLC (TMGO) in Ethiopia and is currently drilling the third well.

These two projects are hinged on the Company’s diversification strategy which has led to the organization’s expansion in the Horn of Africa. Besides Ethiopia, KenGen has also secured a Ksh.709 million project to offer commercial drilling services in Djibouti.

In February this year, the company signed a contract with Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG). KenGen is also prospecting for similar partnerships locally and other countries in the region.

Th Federal Democratic Republic of Ethiopia has declared a six-month state of emergency in the Horn of African country but the situation on the ground is calm and KenGen hopes normalcy will resume soon.

“We are assessing the full extent of this latest security situation and working with both the Kenyan and Ethiopian Foreign Affairs and Security authorities for purposes of monitoring the situation to ensure the continual safety of our people,” said Dr. Mudany.

KenGen is optimistic that the unfolding situation will be resolved speedily through peaceful means.

Note to Editor:

About KenGen

Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in Eastern Africa region with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.

Today, KenGen PLC has an installed generation capacity of 1,818MW, of which over 86% is drawn from green sources namely: Hydro (826MW), Geothermal (713MW), Thermal (253MW), and Wind (26MW).

For media queries please contact:

Frank D. Ochieng, Tel:0721816896

This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.

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