KenGen pays Sh545m private shareholders dividend

Companies

KenGen pays Sh545m private shareholders dividend

Friday February 16 2024

Shareholders during KenGen’s annual general meeting in Nairobi. FILE PHOTO | NMG

Electricity producer KenGen has paid its private shareholders a first and final dividend of Sh0.3 per share totalling Sh545.21 million for the financial year ended June 2023.

The 190,784 shareholders constitute 30 percent of the Nairobi Securities Exchange (NSE) listed company’s shareholder base. The remaining 70 percent stake is held by the National Treasury.

The dividend payment follows the approval granted by shareholders during the company’s 71st Annual General Meeting (AGM) held in November last year.

KenGen will pay a total dividend of Sh1.98 billion, which means the National Treasury will get a payout of Sh1.43 billion. The firm has yet to announce when it will pay the government’s dividend.

KenGen Managing Director Peter Njenga reiterated the company’s 2024 priorities, emphasising a focus on new technologies to enhance electricity generation using existing power plants.

“We understand the central catalytic role energy plays in our country’s economic development and to this end, we remain focused on our 2024 and long-term strategic priorities to not only meet the growing energy demand but also offer green energy solutions to Africa,” said Eng Njenga.

KenGen recorded a profit after tax of Sh5.2 billion in the full year to June 2023, a growth of 48 percent from Sh3.38 billion in the previous year.

The company’s profit surge was driven by a 14 percent increase in its revenues, which grew to Sh53.96 billion up from Sh47.5 billion in 2022.

“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918 gigawatt-hours (GWh) in 2022 to 8,027GWh,” said the firm when it announced its results.

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