1. OPERATIONAL EXCELLENCY
Presented by Eng. Francis Kawa
Leaders annual conference: 7th – 8th November 2018
Disclaimer:
No part of this report may be circulated, quoted, or reproduced for distribution without prior written approval from KenGen. All the information contained herein was prepared for information only.

2. 2017/18 FY Comparison of Q1 2017/18 & 2018/19 Revenue
PPA Target Kshs M
Actual Kshs M
Variance (kshs M)
Variance %
Capacity Revenue
22,867.9
21,160.1
( )
(4.47)
Energy Revenue
8,614.1
8,191.3
(422.8)
(4.91)
Total Revenue
31,482.00
29,351.40
(2,130.60)
(6.77)
Comparison of Q1 2017/18 & 2018/19
Revenue
Actual (kshs M) 1st Quarter 2017/18
Actual (kshs M) 1st Quarter 2018/19
Variance (kshs M)
Variance %
Capacity Revenue
5,214.8
5,481.2
266.4
5.11
Energy Revenue
2,011.2
2,088.6
77.4
3.85
Total Revenue
7,226.0
7,569.8
343.8
4.76

3. Procurement process is very slow
OPEX initiatives
2019/20 Strategic Initiative/ Projects R A
S/C I
Budget (KShs 'M)
Remarks
Reliability Centered Maintenance (Manitoba and Toshiba) for both OD and GD
OD&GDD
HRA, FICT, SC
ExCo
100
There has been challenges funding training programs from HR. Get training on RCM
Ultimate cell for Kipevu
RM - Kipevu OD
SC, OD 60
Use of hydrogen gas to enhance combustion thus reducing emission, reduce SFC (saving 15% of fuel) and improving its position on the merit order
Harmonization of spare codes/material clean up
SCM
SCD
OD, GDD, FICT, SID 20
SLA/Consignment agreement with key OEM/Authorized agents
CSLA, FICT, OD, GDD
 Procurement process is very slow

4. 2019/20 Strategic Initiative/ Projects
S/C I
Budget (KShs 'M)
Remarks
Centralized Dispatch Center
OD&GDD
OD& GDD
SC, FICT
ExCo
600
Centralized command of the plants, enhance implementation of AGC, enabler of operations analysis and support centralized maintenance team
To be integrated with the new security surveillance system
Gitaru rehabilitation
RM-Eastern OD
SC, FICT,CSLA
300
Excitation systems and the generators
There is a concern on recovery of funds spent in rehabilitation projects from the PPA
Consultancy for Sangoro bypass channel
RM-Western
FICT, BDD, SC 50
Study on improvement f irrigation channel in view of operating Sangoro when Sondu machines are unavailable
Kindaruma Desiltation
SC, FICT,CSR
Identify a contractor to desilt, separate the sand and sell it. The proceeds pay for the contractor's cost and the balance be given to the community

5. Wellhead Plants` optimization
2019/20 Strategic Initiative/ Projects R A
S/C I
Budget (KShs 'M)
Remarks
Wellhead Plants` optimization
OPS - GDD
GDD
OD, SC, FICT
ExCo
800
Relocation of welheads on OW-908 and 919 to wells with sufficient steam (5MW) and purchase smaller ones (2 - 3 MW) to replace them. Also, replacement of turbine rotor for Eburru
Concern on speed of steam conversion
Garissa Solar O&M
 TSM
 OD
 CRS, FICT
 ExCo
There has been a great influence from KenGen to REA and as a result there is a negotiation meeting slated for 9th November 2018
Improving wrench time
 RMs & OMs
 OD & GDD
 SC, FICT
100
Establish a tool store in every station managed by Operations staff. Have state of the art/modern tools. Have a well equipped vehicle for responding to machine breakdowns for Olkaria and CEW. Annual tool inventory

6. Insurance premiums for motor vehicles
2019/20 Strategic Initiative/ Projects R A
S/C I
Budget (KShs 'M)
Remarks
SAP PM module
 RMs & OMs
 OD & GDD
SC, FICT
 ExCo
 30
To improve on use and quality of the PM. Conduct a certification training. Concern on coordination of global activities e.g awareness sessions
Insurance premiums for motor vehicles
 Insurance
CSLA 
Have third party insurance policy for cars >5years or have zero book value. Save 20 M (Pay 40M instead of 60M) To align with the motor vehicle insurance policy
Overtime
Delay in employment of staff More support staff are being employed instead of technical staff

7. Consider maintaining the teams for progress monitoring