Kenya Power's plan to pay Ksh. 25 billion debt owed to KenGen

Kenya Power has a plan in place to settle a Ksh. 25 billion debt it owes to electricity generating company KenGen.

According to KenGen, the power company has been settling its debt on time and there is no fear of a spill over.

“The ongoing reforms at Kenya Power bode well for the electricity generating company and there is no need for fear of a potential spill over from Kenya Power,” Dr. John Mudany Finance Director KenGen said in a statement.

Mudany similarly stated that KPLC has been remitting Ksh.4.5 billion, on a monthly basis, to the power generator as part of the deal. 

"They have been doing their best to pay us on a monthly basis. They pay us Ksh.4.5 billion per month and that is part of the contribution. We are very proud that they have been able to look at their fundamentals and we have noticed that they have made significant improvement in terms of their contribution and all the efforts they have been put in place. Their success is our success and we do appreciate for the effort that is taking place there,” Mudany added.

In the full year ended June 2021, KenGen’s, profit before tax grew  by 7 percent to Ksh. 14.8 billion but heavy tax liability wiped out the net earnings to just Ksh.1.2 billion.

The KenGen board has recommended a first dividend of 30 cents per share for the year 2021.