Electricity generator KenGen has more than doubled its dividend payout to Sh0.65 per share after recording a significant rise in net profit for the year ended June 2024.
The company has made a profit after tax of Sh6.79 billion for the period, up 35.5 percent from the Sh5.01 billion it made in the year to June 2023.
Following the performance, the Nairobi Securities Exchange-listed (NSE) firm said it would pay a total dividend of Sh4.28 billion, more than double the Sh1.97 billion it paid out to its shareholders last year at Sh0.30 per share.
The government, through the National Treasury, is the majority shareholder in KenGen with a 70 percent stake and is expected to take home a dividend of Sh2.99 billion, boosting the public coffers.
KenGen’s revenue rose to Sh56.2 billion during the period, a steady increase from Sh53.9 billion a year earlier, but costs rose by a nearly similar margin to Sh49.5 billion up from Sh47.9 billion.
The power producer’s finance income more than doubled to Sh4.2 billion from Sh1.6 billion, although its finance costs rose marginally to Sh2.8 billion from Sh2.7 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 chief executive Peter Njenga in a statement.
KenGen's financial performance in the second half of the year was boosted by significant rainfall, which improved hydropower output and optimised geothermal production.
The company sold 8,384 gigawatt-hours (GWh) of electricity to Kenya Power during the financial year, a four percent increase from the 8,027 GWh it sold to the utility in the year to June 2023.
The increased sales came despite the decommissioning of 133.5 megawatts (MW) of its fossil fuel-powered thermal plants at Muhoroni and Kipevu following the expiry of their power purchase agreements (PPAs).
Going forward, KenGen is seeking to increase power generation through the construction of the 80MW Olkaria VII geothermal power plant, the 42.5MW Seven Forks solar PV plant and the 8.6MW Gogo hydro plant.
“The shift to green energy is part of our broader push to meet the rising energy demand while reducing our carbon footprint,” said Mr Njenga.
