Kenya Electricity Generating Company (KenGen) has disbursed Sh3 billion in dividends to the government for the financial year ending June 30, 2024.

The move by the state-owned power producer, which marks a 117 per cent per-share increase over the previous year follows a strong financial performance that saw the company post a Sh6.8 billion net profit.

Speaking during the cheque handover ceremony at Stima Plaza in Nairobi, National Treasury and Economic Planning Cabinet Secretary John Mbadi lauded KenGen’s financial strength, describing the power generator as a model of excellence for the ministry.

“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,” he said.

“We value your work for the economic survival of our country and will continue to support new projects with funding from development partners,” Mbadi added.

KenGen Chairman Alfred Agoi said 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,” he said.

KenGen Managing Director and CEO Peter Njenga echoed the sentiments, adding, “Our performance demonstrates our ability to balance immediate shareholder returns with long-term investments in Kenya’s energy future.”

“This dividend is a tangible affirmation of our strategic focus, which has optimised our operations and reinforced our leadership in the power generation sector.”
Njenga said the company’s performance had benefited significantly from supportive public policies, robust partnerships, and a regulatory framework designed to foster sustainable development.

The two officials 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.

The leaders underscored the significance of the dividend as a testament to the NSE-listed power generator’s robust financial performance and its strategic alignment with national development goals.

State Department for Energy PS Alex Wachira observed that KenGen is well run and is 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,” he said.

Mbadi commended the Ministry of Energy and Petroleum and KenGen for a rare occasion where the government receives money from local agencies.