Electricity generating company KenGen has doubled its dividend to Sh0.65 per share after recording a significant increase in net profit for the year ending June 2024.
The company made a profit after tax of Sh6.79 billion for the period, up 35.5 per cent from the Sh5.01 billion it made in the year to June 2023.
Following the performance, the Nairobi Stock Exchange (NSE)-listed company said it would pay a total dividend of Sh4.28 billion, more than double the Sh1.97 billion it paid to its shareholders last year at Sh0.30 per share.
The government, through the National Treasury, is the majority shareholder in KenGen with a 70 percent stake and is expected to receive a dividend of Sh2.99 billion, boosting the public exchequer.
KenGen’s revenues rose to Sh56.2 billion during the period, a steady increase from Sh53.9 billion the previous year, but costs rose by an almost identical margin to Sh49.5 billion, up from Sh47.9 billion.
The energy producer’s financial income more than doubled to Sh4.2 billion from Sh1.6 billion, although financing costs rose marginally to Sh2.8 billion from Sh2.7 billion.
“This impressive growth not only strengthens our financial position, but also signals greater shareholder returns now and long-term into the future, while strengthening our ability to invest in vital renewable energy projects that provide reliable, affordable electricity to our customers,” KenGen CEO said. Peter Njenga in a statement.
KenGen’s financial performance in the second half of the year was boosted by heavy rainfall, which led to improved hydropower production and improved geothermal production.
The company sold 8,384 gigawatt-hours of electricity to Kenya Power during the financial year, a four percent increase from the 8,027 gigawatt-hours it sold to utilities in the year ending June 2023.
The increase in sales came despite the decommissioning of its 133.5 MW fossil fuel-fired thermal plants in Muhoroni and Kibivu following the expiration of their power purchase agreements.
Going forward, KenGen is seeking to increase power generation by building the 80 MW Olkaria VII geothermal power plant, the 42.5 MW Seven Forks solar PV plant, and the 8.6 MW Gogo hydro plant.
“The transition to green energy is part of our broader endeavor to meet growing energy demand while reducing our carbon footprint,” Mr Njenga said.