The National Treasury has received Ksh 3 billion dividend payout from the Kenya Electricity Generating Company (KenGen) for the financial year ended June 30, 2024.
The pay which is equivalent to 70pc of total dividend amounting to Ksh 4.3 billion follows better performance the electricity generator registered in the FY2023/24 period when the listed firm posted a Ksh 6.9 billion in profit after tax.
“We are immensely proud of KenGen as a model of excellence for the National Treasury. Their stability, cost efficiency, and reliability in energy supply are key indicators of our nation’s economic performance, and KenGen stands at the heart of our energy value chain. We value your work for the economic survival of our country and will continue to support new projects with funding from development partners,” said National Treasury and Economic Planning Cabinet Secretary John Mbadi when he received the cheque from the utility.
According to the firm, the latest pay to its majority shareholder is a 117pc increase per share when compared to the same period in 2023.
The increase in profit after tax during the period was underpinned by increase electricity generation, enhanced operation efficiency, revenue diversification and prudential financial management.
“This dividend payment is much more than a mere distribution of profits. It is a powerful statement of our commitment to delivering value to every investor while simultaneously reinvesting in the growth and future of our company. It underscores our belief that sustainable success comes from balancing forward-thinking investments with the tangible rewards our shareholders rightfully deserve,” said Peter Njenga, KenGen Chief Executive Officer.
KenGen which is listed on the Nairobi Securities Exchange says it already disbursed Ksh 1.3 billion to its private investors who own 30pc of the company in February this year.
“Our approach to balancing immediate shareholder returns with long-term investments is integral to fostering resilience and innovation. We are committed to working with policymakers to further enhance our sector’s competitiveness and drive Kenya’s energy agenda forward,” stated Alfred Agoi, KenGen Chairman.
The firm expects the substantial increase in dividend payout to further boost investor confidence in KenGen shares.
In today’s NSE main counter, KenGen shares were trading Ksh 5.16 per share which is a 25.85pc gain when compared to Tuesday.
