Carbon credit boon for KenGen

Power producer KenGen earned Sh57 million from the sale of carbon credits in the year to June this year.

Managing Director Rebecca Miano said while the firm would continue participating in the emissions trading system, earnings are likely to remain subdued by the sub-sector’s prevailing trading framework and a slowdown in the global momentum. The carbon trading system is aimed at reducing pollution by penalising polluters and at the same time enabling companies or countries to earn from their environmentally friendly projects.

Other streams

“Some of the international protocols that brought forth these carbon credits framework have not come out very clearly as to the future of the system. We have registered some projects in Olkaria and Kindaruma and have plans to register more, but it is not a big revenue stream. Global momentum has not continued on a high trajectory,” said Miano in a recent interview.

KenGen is among the few firms in Kenya that are earning from their green projects. Others that have in the past earned from the sale of carbon credits include Mumias Sugar Company, East Africa Portland Cement, and Kenya Power. In the financial year to June 2017, the firm earned Sh57 million from carbon credits, down from Sh91 million in 2015. There were no earnings in the year to June 2016. Miano said the firm would focus on other diversified revenue streams.