1. Leaders’ Annual Conference
Confidential
Leaders’ Annual Conference
7th & 8th November 2018
Kenya School of Government
Summary Budget Analysis
Presentation by David Mwangi, Finance Manager

2. SUMMARY RECURRENT BUDGET
ITEM
AUDITED ACTUAL 2016/17
REVISED BUDGET 2017/18
AUDITED ACTUAL 2017/18
PROPOSED BUDGET 2019/2020
Total Revenue
36,609,991
38,397,022
34,781,000
47,818,481
Total Expenditure
25,076,067
26,378,984
23,035,533
36,371,683
Profit before Tax
11,533,924
12,018,038
11,745,467
11,446,798

3. 2019/2020 RECURRENT BUDGET ITEM AUDITED ACTUAL 2016/17 BUDGET 2018/19
PROPOSED BUDGET 2019/2020
REVENUE
KShs '000
Capacity Revenue
21,713,926
22,181,660
21,138,000
31,294,292
Energy Revenue
4,626,196
4,931,879
5,231,000
6,007,457
Well Heads Energy Revenue
2,666,500
3,397,355
2,915,000
3,072,105
Forex Adjustment
362,203
648,724
643,000
836,987
Steam revenue
5,189,072
5,365,628
6,222,057
4,735,865
Fuel pass through-Revenue
9,069,403
3,397,197
9,622,740
Fuel pass through-costs
(8,812,613)
(3,397,197)
(9,246,855)
Water Res. Mgt. pass through- Revenue
166,822
143,638
159,172
Water Res. Mgt. pass through- costs
(166,822)
(143,638)
(159,172)
Interest Income
1,242,157
659,736
1,529,000
EPP Administration
2,281 -
Drilling & Consultancy
829,000
Other Income
550,866
383,040
274,771
TOTAL REVENUE
36,609,991
38,397,022
34,781,000
47,818,481

4. 2019/2020 RECURRENT BUDGET ITEM AUDITED ACTUAL 2016/17 BUDGET 2018/19
PROPOSED BUDGET 2019/2020
RECURRENT EXPENSES
KShs '000
Steam costs
2,795,798
2,760,667
3,549,428
2,440,916
Plant and operating maintenance
1,422,421
2,086,144
1,614 ,000
3,950,494
Staff costs
4,912,764
5,273,833
5,806,000
8,229,673
Welfare, Benefits and Training
769,248
784,208
647,000
1,827,703
Travel, Hotel, Fares & Allowances
309,645
289,942
361,000
896,171
Depreciation and Amortisation
9,244,422
9,615,276
10,159,000
12,458,766
Transport Expenses
165,993
199,985
133,000
538,718
Licensing expenses
25,789
80,407
53,000
149,069
General Expenses (Incl CSR)
271,568
448,135
357,000
552,262
Consultants Fees
49,873
160,300
26,000
546,130
Directors Expenses
75,709
82,000
52,000
83,400
Office Expenses
277,181
347,931
85,000
472,227
Legal & Statutory Expenses
122,974
128,500
117,000
427,000
Insurance expenses
684,293
800,000
767,000
1,025,000
Advertising
67,570
100,000
46,000
258,145
Finance Charges
3,417,442
3,114,656
3,031,000
2,409,010
Dam maintenance
107,000
Other (Gains)/Losses
(72,233) -
(164),000
Provision for write-offs
428,610
Total Expenditure
25,076,067
26,378,984
23,035,533
36,371,683
Profit before Tax
11,533,924
12,018,038
11,745,467
11,446,798

5. Historical Capex Budget Performance Vs 2019/20 Capex Budget
2016
Budget/
Actual
2017
2018
2019
2020 Proposed Budget
Details
KShs mil
Capex
Budget
41,206
45,312 
50,421
46,731
**59,782
26,957 
12,465 
14,675
*6,908
N/A
*Expenditure as at 31st October 2018
**Capex after the budget discussions

6. 2019 / 2020 BUDGET PROGRAMME (OG4)
DATE
ACTION
RESPONSIBLE
STATUS
Release of budget guidelines to the Budget Holders.
FP & Budgeting  Staff & Finance Manager
Done
02/10/2018-
12 /10/2018
1. Data Entry by Budget Holders (in SAP).
2. ICT to open 2019/20
Financial year in the system and provide keying in authorizations to the Budget Holders.
1.Budget Holders guided by FP & Budgeting  Staff
2.ICT Staff
15/10/2018-
30/10/2018
Clarification/Discussions of the budget proposals with the Budget Holders and the related amendments in SAP.
FP & Budgeting  Staff
31/10/2018-
02/11/2018
Compilation of the budget files.
Discussion with Finance Manager and Finance & ICT Director.
Outstanding
05/11/2018
Departmental Managers to Executive Committee (EXCO)
FP & Budgeting  Staff, Finance Manager, F&IC T Director, Departmental Heads and  Divisional Heads
06/11/2018
Presentation by Divisional Directors
08/11/2018-
14/11/2018
Amendments to the budget as per recommendations by EXCO and preparation of Board Paper.
FP & Budgeting  Staff,
Finance Manager and  F&ICT Director

7. 2019 / 2020 BUDGET PROGRAMME (OG4)
DATE
ACTION
RESPONSIBLE
STATUS
08/11/2018-
14/11/2018
Amendments to the budget as per recommendations by EXCO and preparation of Board Paper.
FP & Budgeting  Staff,
Finance Manager and  F&ICT Director
Outstanding
21/11/2018-
21/11/2018
Presentation to the Strategy Committee for consideration
(Full Board invited).
Presentation to the Full Board.
Managing Director supported by
F& ICT Director, Finance Manager, FP & Budgeting  Staff and Divisional Heads
22/11/ /11/2018
Preparation of final GoK Schedules in approved format.
FP & Budgeting  Staff, Finance Manager & F & ICT Director
26/11/2018
Forward the Budget to Ministry of Energy & Petroleum and Treasury for Approval.
Finance Manager, F& ICT Director and Managing Director
01/02/2019-
31/03/2019
Follow up approval from Ministry of Energy and National Treasury.
FP & Budgeting  Staff Finance Manager and F&ICT Director
01/04/2019-
15/05/2019
Preparation of Capital Structure in SAP and compilation of Budget Book
FP & Budgeting  Staff Finance Manager 
01/06/2019-
30/06/2019
Forward approved budget to the Budget Holders.
FP & Budgeting Staff. Finance Manager 

8. Proposed Departmental Budget Presentations to ExCo
…TBA… NOVEMBER 2018 (Day 1)
TIME
DIVISION
ARRIVAL 7:30 AM
ALL
7.45 A.M A.M
PRAYERS AND INTRODUCTION
8.00 A.M – 8.30A.M
OPENING REMARKS BY MD & CEO (R. MIANO)
8.30 A.M A.M
BUDGET OVERVIEW BY F & ICT DIRECTOR (J. MUDANY)
9.00 A.M – 9:30 A.M
REVENUE - REGULATORY AFFAIRS DIRECTOR (S. NGURE)
9.30 A.M. – A.M
BUSINESS DEVELOPMENT
Project Execution- R. Korir
Capital Planning & PPP- E. Njenga
New Business Development –N. Ng’eno
BD Director – M. Wekesa
10.45 A.M A.M
 COFFEE/TEA BREAK
11.00 A.M. – 12.45P.M.
OPERATIONS DIVISION
Eastern Region – J. Odumbe
Upper Tana – E. Kibathi
Western Region & Muhoroni GT – F. Konuche
Thermal Region (Kipevu I, Kipevu III) – W. Kimote
Ngong and Central Office Projects – J. Ngugi
Technical Services – Omar Kuta
Operations Director – S. Kariuki
12.45 P.M. – 1.45 P.M
LUNCH

9. Proposed Departmental Budget Presentations to ExCo
…TBA… NOVEMBER 2018 (Day 1 Continued…..)
TIME
DIVISION
1.30 P.M – 3.00 P.M.
GEOTHERMAL DEVELOPMENT
Geothermal Power Plant –F. Kawa
Reservoir & Steam Field – P. Ouma
Resources Development – P. Mangi
Drilling & Logistics – E. Bett
Geothermal Development Director – A. Rotich
3.00 P.M. – 4.00 P.M.
STRATEGY & INNOVATION DIVISION
Strategy Manager – K. Yaola
Innovation Manager– P. Wambugu
Strategy & Innovation Director – D. Muthike
4.00 P.M. – 4.45 P.M.
SUPPLY CHAIN DIVISION
Tenders & Contracts – Vincent Mamboleo
Inventory Management & Logistics – Antony Kitungu
Supply Chain Director – P. Yego

10. Proposed Departmental Budget Presentations to ExCo
…TBA… NOVEMBER 2018 (Day 2)
ARRIVAL 7.30 A.M
ALL
8.00 A.M A.M
PRAYERS
8.10 A.M – 8.20 A.M
OPENING REMARKS BY MD & CEO Rebecca Miano
8.20 A.M. – 9.20 A.M
COMPANY SECRETARY & LEGAL AFFAIRS DIVISION
Property – J. Oduor
Insurance –D. Nzioka
Legal – B. Koskei
Shares & Board Services – P. Mbwiri
Company Secretary/Legal Affairs Director – P. Ndungi
9.00 A.M. – A.M.
HUMAN RESOURCES & ADMINISTRATION DIVISION
Human Resources – J. Mbugua
Performance and Change – B. Kandie
Administration – Michael Gichuru
HR & Admin Director – A. Serem
10.00 A.M. – A.M.
CORPORATE & REGULATORY SERVICES DIVISION
Environment & CDM –J. Were
Quality & Safety – H. Ithiami
Regulatory – A. Oseko
Communication – G. Chepkwony
Corporate & Regulatory Services Director – S. Ngure
11.00 A.M – A.M
COFFEE/TEA BREAK

11. Proposed Departmental Budget Presentations to ExCo
…TBA… NOVEMBER 2018 (Day 2 Continued……)
11.00 A.M – A.M
COFFEE/TEA BREAK
11.20A.M. – P.M.
MANAGING DIRECTOR & CEO
Internal Audit & Risk – E. Audi
Security& Integrity – T. Mbarak
Events & Protocol – J. Muhoro
MD& CEO – Francis Makabwa
12.00 P.M. – P.M.
KenGen Foundation Managing Trustee –
12.45 P.M. – 1.45 P.M.
 LUNCH
1.45 P.M. – 3.00 P.M.
FINANCE & ICT DIVISION
ICT – J. Ombongi
Corporate Finance – M. Maalu
Finance – D. Mwangi
Finance & ICT Director - J. Mudany
3.00 P.M. – 3.45 P.M.
WAY FORWARD BY F & ICT DIRECTOR (J. MUDANY)
3.45 P.M. – 4.15 P.M.
 CLOSING REMARKS BY MD & CEO (R. MIANO)
4.15 P.M
TEA BREAK

12. Thank you