KenGen pays Treasury Ksh.1.4 billion dividend

The Kenya Electricity Generating Company (KenGen) has announced payment of Ksh.1.4 billion to the National Treasury as a dividend for the financial year ended June 2021.

This follows a recommendation by the KenGen Board to the shareholders during the company's AGM held in December 2021 for payment of a first and final dividend of Ksh.0.30 per ordinary share of Ksh.2.50 for the year ended June 2021.

The pay-out translated to a total of Ksh.1.98 billion, of which other shareholders already received their entitlement in 2022.

Of the total dividend paid out by KenGen, Ksh.1,384,627,226.40 was to the Kenyan government, which owns 70% of the Company's stock making it the sole majority shareholder.

This announcement was made when KenGen presented the cheque to the National Treasury on Tuesday, which Principal Secretary, Dr. Chris Kiptoo received on behalf of Cabinet Secretary Prof. Njuguna Ndung'u.

Speaking during the formal cheque handover ceremony, Dr. Kiptoo commended the Ministry of Energy and KenGen for what he termed a rare occasion where the government receives money from local agencies.

“Many companies are going through hard times now and therefore for KenGen to post profits and pay dividends is a clear testament to the company’s good management processes," said Dr. Kiptoo.

The PS added that energy was crucial in the development of Kenya, adding that the government was keen to support new strategic areas of growth in the entire electricity value chain.

Principal Secretary, Ministry of Energy and Petroleum, State Department of Energy, Alex Wachira, on his part, lauded KenGen’s consistency in delivering value to shareholders, which he attributed to the NSE-listed company’s sound corporate strategy, that he said has seen KenGen diversify into new revenue streams.

“Going forward, KenGen must grow its business to ensure you remain a major player in the energy value chain contributing between 67% and 75% of Kenya's electricity consumption at any given time,” said the Energy PS.

He challenged KenGen to focus on growing the base load of electricity using renewable energy sources like geothermal, hydro, wind, and solar, adding that this would also help drive down the cost of electricity.

In his remarks, KenGen Chairman Julius Migos Ogamba said: “This is truly a remarkable day and a testament to KenGen's resolve to continue creating value creation for its shareholders and indeed the great people of Kenya.”

The Chairman added: “Today, we make a bold statement about the organizational health of your company KenGen. Truly, this is a win for Kenya as it guarantees that we will always be here to ensure the availability of reliable, clean, and competitively priced energy for Kenyans.”

Ogamba said KenGen’s continued dividend pay-out to shareholders demonstrates the company’s financial stability and good financial investment option for many investors in the Nairobi Securities Exchange.

KenGen Ag. Managing Director and CEO, Abraham Serem said added that the dividend payment to the Treasury exemplified KenGen’s commitment to providing value to its shareholders.

“To keep creating shareholder value, we are keen on implementing our diversification strategy to attract new revenue streams working together with our stakeholders in generating clean, reliable, safe, quality, and competitively priced electricity for the nation in 2023,” said Serem who was represented by Business Development and Strategy, General Manager, Elizabeth Njenga.

The Government of Kenya owns a 70% stake in the NSE-listed company while private investors own 30%.