Electricity generator KenGen has significantly increased its dividend payout to Ksh 0.65 per share, following a notable rise in net profit for the fiscal year ending June 2024.
The company reported a profit after tax of Ksh 6.79 billion for the period, reflecting a 35.5 percent increase from Ksh 5.01 billion recorded in the previous year ending June 2023.
In light of this performance, the firm, which is listed on the Nairobi Securities Exchange (NSE), announced a total dividend distribution of Ksh 4.28 billion, more than double the Ksh 1.97 billion disbursed to shareholders last year at Ksh 0.30 per share.
The government, through the National Treasury, holds a 70 percent majority stake in KenGen and is anticipated to receive a dividend of Ksh 2.99 billion, thereby enhancing public revenue.
During this period, KenGen’s revenue increased to Ksh 56.2 billion, up from Ksh 53.9 billion the previous year.
However, costs also rose correspondingly, reaching Ksh 49.5 billion, compared to Ksh 47.9 billion.
The company’s finance income more than doubled to Ksh 4.2 billion from Ksh 1.6 billion, while finance costs saw a slight increase to Ksh 2.8 billion from Ksh 2.7 billion.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” said KenGen CEO Peter Njenga in a statement.
KenGen’s financial results for the latter half of the year were positively influenced by substantial rainfall, which enhanced hydropower generation and optimized geothermal energy production.
During the financial year, the company delivered 8,384 gigawatt-hours (GWh) of electricity to Kenya Power, marking a four percent rise from the 8,027 GWh supplied to the utility in the year ending June 2023.
This increase in sales occurred despite the retirement of 133.5 megawatts (MW) from its fossil fuel-based thermal plants at Muhoroni and Kipevu, following the conclusion of their power purchase agreements (PPAs).
Looking ahead, KenGen aims to expand its power generation capacity through the development of the 80MW Olkaria VII geothermal power facility, the 42.5MW Seven Forks solar photovoltaic plant, and the 8.6MW Gogo hydroelectric plant.
“The shift to green energy is part of our broader push to meet the rising energy demand while reducing our carbon footprint,” said Njenga.
