Kenya Electricity Generating Company (KenGen) has launched its inaugural Sustainability Report, considered a major milestone in the company’s Environmental, Social and Governance (ESG) journey to reaffirm its commitment to clean energy, climate action and responsible corporate leadership.

Speaking on Monday during the launch at Karura Forest, Environment and Climate Change Principal Secretary Engineer Festus Ng’eno hailed the report as a significant contribution to strengthening sustainability reporting in Kenya. Dr Ng’eno said the report would enhance national environmental accountability and support the preparation of the country’s State of the Environment Report.

“I want to congratulate KenGen for delivering this inaugural sustainability report. We encourage all public institutions and the private sector to prepare sustainability reports because they provide critical information for compiling Kenya’s State of the Environment Report,” Ng’eno appealed.

He noted that the energy sector remains Kenya’s best-performing sector in climate change mitigation under the Nationally Determined Contributions (NDCs), attributing the feat to the country’s growing reliance on renewable energy.

“The energy sector is the only green sector that is on course to meet and even surpass its climate targets. KenGen has demonstrated leadership in environmental stewardship and sustainable development,” he said.

The principal secretary challenged the company to scale up conservation efforts around water towers that support hydropower generation and deepen its contribution to the government’s target of growing 15 billion trees by 2032.

KenGen Managing Director and Chief Executive Peter Njenga described the report as more than a corporate publication, saying it demonstrates the company’s commitment to transparency, accountability and sustainable business practices.

“This report is the public expression of our promise to account for how we create value, protect our environment and serve our communities with the same seriousness we bring to every megawatt we generate,” said Njenga.

He said the report captures the company’s environmental, social and governance performance for the 2024/2025 financial year and institutionalise sustainability as a core business strategy rather than a standalone programme.

According to the report, renewable energy accounted for 94.4 per cent of KenGen’s electricity dispatch during the reporting period, while the company’s operations generated 6.9 million carbon credits. It also highlights investments in environmental restoration, education, water access and community development.

Njenga said KenGen plans to expand its renewable energy portfolio by adding 5,500 megawatts of clean energy capacity by 2034, with geothermal power remaining at the centre of its growth strategy.

The expansion includes Kenya’s first nuclear power plant, which KenGen has been designated to own and operate, as well as energy storage systems and the Green Energy Park in Olkaria.

He said the company also aims to grow nine million trees by 2034 while continuing to invest in programmes that improve livelihoods in communities hosting its operations.

“Our ambitions are about more than megawatts. They are about creating jobs, strengthening communities, protecting ecosystems and ensuring economic prosperity goes hand in hand with environmental responsibility,” he said.

KenGen Sustainability Manager Elizabeth Mwangi said the report reflects the company’s commitment to creating shared value for the communities it serves, noting that sustainability has become embedded across all its operations.

She said the company supported more than 42,300 households with reliable access to water during the reporting period, invested Ksh17 million in education and skills development, awarded scholarships to 237 students and channelled 69 per cent of its procurement expenditure, equivalent to Ksh10.01 billion, to local suppliers.

Mwangi said the company also increased business opportunities for women, youth and persons with disabilities while strengthening environmental conservation through tree-growing and geothermal water reuse initiatives.

During a media briefing, Njenga announced that the sustainability report would be published annually and invited Kenyans to hold the company accountable for the commitments outlined in the document.

“We want Kenyans to hold us to account. Every year we shall be preparing this report and measuring our progress against the commitments we have made,” he said.

The launch brought together senior government officials, development partners, regulators, investors and stakeholders from the energy sector, underscoring the growing role of sustainability reporting in advancing Kenya’s green growth agenda.

• A Tell Media / KNA report / By Nancy Omondi and Zipporah Odionyi