KenGen pays State Sh1.4b in dividends from 2021 earnings

Wednesday, June 7th, 2023 09:00 | By
KenGen pays State Sh1.4b in dividends from 2021 earnings
KenGen chairman Julius Migos Ogamba (left) presents KenGen’s Sh1.4 billion dividend dummy cheque to the Treasury PS Chris Kiptoo (2nd Left) flanked by Energy PS Alex Wachira and KenGen general manager in charge of business development and strategy Elizabeth Njenga. PHOTO/Courtesy

MONEY:  Kenya Electricity Generating Company (KenGen) will hand over Sh1.4 billion to the National Treasury as dividend for the financial year ended June 2021.

This is after the KenGen board recommended the dividend payment to the government during its December 2021 Annual General Meeting (AGM, as the first and final dividend of Sh0.30 per ordinary share of Sh2.50, for the year ended June 2021.

The payment translated to a total of Sh1.98 billion, of which other shareholders already received their entitlement in 2022.

Majority owner

The government owns 70 per cent of the company’s stock, making it the sole majority shareholder.

In a move that underpins the company’s sustained positive financial standing, the National Treasury Principal Secretary Chris Kiptoo who received the cheque on behalf of Cabinet Secretary Njuguna Ndung’u termed the move a rare happening.

Speaking during the formal cheque handover ceremony, Kiptoo commended the Ministry of Energy and KenGen for what he termed a rare occasion where the government receives money from local agencies. “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,” Kiptoo said.

He said the energy sector was crucial in the development of the economy, adding that the government was keen to support new strategic areas of growth in the entire electricity value chain.

Principal Secretary, Ministry of Energy and Petroleum, State Department of Energy, Alex Wachira, lauded KenGen’s consistency which he attributed to the Nairobi Securities Exchange-listed firm’s sound corporate strategy, that he said has seen KenGen diversify into new revenue streams.

“Going forward, KenGen must grow its business to ensure you remains a major player in the energy value chain contributing between 67 per cent and 75 per cent of Kenya’s electricity consumption at any given time,” Wachira said.

More on Business