KenGen Pays National Treasury Sh1.4B in Dividends

Kenya Electricity Generating Company (KenGen) has paid Sh1.4 billion in dividends to the National Treasury for the fiscal year that ended in June 2021.

The payment was made as a result of the KenGen Board’s decision to distribute Sh2.50 in final dividends to shareholders.

The final payout came to Sh1.98 billion, of which other shareholders had already got their portion by 2022.

The Kenyan government, which holds 70% of the shares in the company, received Sh1.39 billion of the total dividend paid out by KenGen, and the remaining 30% was distributed to private investors.

Tuesday, when KenGen delivered the check to the National Treasury, which Principal Secretary Chris Kiptoo accepted on behalf of Cabinet Secretary Njuguna Ndung’u, the announcement was made.

“Many companies are going through hard times now and therefore for KenGen to post profits and pay dividends is a clear testament to the company’s good management processes,” said Kiptoo.

The PS noted that Kenya’s development was dependent on its access to energy and that the government was eager to promote new, strategic growth sectors across the whole electricity value chain.

“Going forward, KenGen must grow its business to ensure you remain a major player in the energy value chain contributing between 67% and 75% of Kenya’s electricity consumption at any given time,” Ministry of Energy and Petroleum, State Department of Energy PS Alex Wachira said.

He urged KenGen to concentrate on increasing the baseload of electricity utilizing renewable resources such as geothermal, hydro, wind, and solar, noting that doing so will also help lower the price of electricity.

“This is truly a remarkable day and a testament to KenGen’s resolve to continue creating value creation for its shareholders and indeed the great people of Kenya,” KenGen Chairman Julius Migos Ogamba said.

“Today, we make a bold statement about the organizational health of your company KenGen. Truly, this is a win for Kenya as it guarantees that we will always be here to ensure the availability of reliable, clean, and competitively priced energy for Kenyans.”

According to Ogamba, the Nairobi Securities Exchange’s many investors view KenGen’s sustained dividend payout to shareholders as evidence of the company’s financial health and a sound financial investment choice.

Abraham Serem, the acting Managing Director and CEO of KenGen, said the company’s dedication to delivering value to its shareholders was demonstrated by the dividend payment to the National Treasury.

“To keep creating shareholder value, we are keen on implementing our diversification strategy to attract new revenue streams working together with our stakeholders in generating clean, reliable, safe, quality, and competitively priced electricity for the nation in 2023,” said Serem who was represented by Business Development and Strategy, General Manager, Elizabeth Njenga.