“The corporate tax rate was reduced from 30 percent to 25 percent in 2020 but reversed back to 30 percent in 2021 resulting in a tax expense of Sh8.7 billion on deferred tax compared with a credit of Sh8.1 billion in the previous year,” the company said in a statement.
“This contributed significantly to the high tax expense of Sh13.5 billion compared to a previous year tax credit of Sh4.5 billion.”
KenGen has proposed a dividend of Sh0.3 per share or a total of Sh1.9 billion, the same as for the prior year.
Its sales rose four percent to Sh45.9 billion, contributing to pre-tax earnings increasing seven percent to Sh14.7 billion.
The company did not say how much it is owed by Kenya Power #ticker:KPLC which has defaulted on several suppliers. KenGen’s current assets, largely made up of receivables from the electricity distributor, rose to Sh43.8 billion from Sh34 billion.
