Electricity generator, Kenya Electricity Generating Company PLC (KenGen) has issued a dividend payout of Sh.4.3 billion to its shareholders, with Government, as the firm’s majority shareholder, getting Sh3 billion.
This, therefore, marks a 117 per cent per-share increase over the previous year and follows a profit after tax of Sh6.8 billion for the year ended June 30, 2024. There was also an earlier payout of 30 per cent amounting to approximately Sh1.3 billion, which was paid out to the private and institutional shareholders on February 13, 2025.
The announcement was made during a joint press conference at Stima Plaza in Nairobi where KenGen Chairman, Alfred Agoi and Managing Director and CEO, Eng. Peter Njenga delivered a dummy cheque to the National Treasury and Economic Planning Cabinet Secretary (CS) John Mbadi.
CS Mbadi said KenGen’s “stability, cost efficiency, and reliability in energy supply” are key indicators of the country’s economic performance. The company also stands at the heart of Kenya’s energy value chain.
Click here to support our work
“We value your work for the economic survival of our country and will continue to support new projects with funding from development partners,” said Mbadi.
For his part, State Department for Energy PS. Alex Wachira said, “KenGen is well run, consistently delivering profit year after year.”
“Moving forward, our focus will be on supporting new projects in geothermal, hydro, solar, and wind through backing from the National Treasury to help access funds from development partners.”
According to the firm’s chairman, Agoi, the achievement resulted from sustained efforts to boost electricity generation, enhance operational efficiencies, and execute prudent financial management. “Our dividend payout is not merely a financial milestone but a clear reflection of effective policy collaborations and our commitment to Kenya’s growth,” said Agoi.
CEO Njenga said the performance demonstrates the company’s ability to balance immediate shareholder returns with long-term investments in Kenya’s energy future. He said: “This dividend is a tangible affirmation of our strategic focus, which has optimised our operations and reinforced our leadership in the power generation sector.”
He highlighted that the company’s performance had benefited significantly from supportive public policies, robust partnerships, and a regulatory framework designed to foster sustainable development.
ALSO READ: KRA records 4.3 per cent growth in revenue
Both executives pointed to the critical role of strategic investments and policy synergy in driving KenGen’s success. They noted that the company’s ongoing investments in operational excellence and innovation are set to enhance energy security further and stimulate economic progress across the nation.
During the formal cheque handover ceremony, Mbadi commended the Ministry of Energy and Petroleum and KenGen for a rare occasion where the government receives money from local agencies.
The substantial increase in dividend payout is expected to boost investor confidence in KenGen shares. It reaffirms the company’s position as one of the top dividend-paying stocks on the Nairobi Securities Exchange. The Government of Kenya owns a 70 per cent stake in the NSE-listed company, while private investors own 30 per cent.
Victor Adar
The writer is a Nairobi based tech and business journalist who founded the www.businessbarometer.co.ke news website. Order a hard copy of his book: Time to Pivot @ Ksh1,000 . The book's sub title is, "Secrets to Building Enterprises that Matter".
