KenGen set to pay Sh2b in dividends
KenGen shareholders have approved a Sh2 billion dividend payout for the fiscal year ending June 30, 2023, during the company’s 71st annual general meeting held in Nairobi.
This comes as KenGen posted a net profit of Sh5.02 billion for the same period, reflecting a 48 per cent growth from the previous year’s Sh3.4 billion.
The dividend of Sh0.3 per share is considered one of the highest since the company’s 2016 rights issue.
During the AGM, KenGen board chairman Julius Ogamba, attributed the power generator’s strong financial health to its solid business fundamentals, innovation culture, and a robust expansion strategy.
“Our financial results for the year paint a picture of growth and sustainability. Revenue increased by 14 per cent, reaching Sh53.96 billion, showcasing the financial health and robustness of the company,” Ogamba said.
Ogamba emphasized KenGen’s commitment to its Good-to-Great strategy, focusing on geothermal development and revenue diversification.
He outlined initiatives to increase generation capacity in the next two years, primarily from geothermal projects, meeting the growing demand for clean energy in Kenya.
“Looking ahead, our initiatives to increase generation capacity by more than 154 MW, mostly drawn from pipeline projects in geothermal over the next two years reflect our dedication to meeting the ever-growing demand for clean energy in Kenya,” Ogamba said.
KenGen’s managing director and CEO, Peter Njenga, reiterated the company’s priority areas next year, emphasizing new technologies to generate more electricity using existing power plants.
“We are on course with new initiatives to increase generation capacity by more than 154 MW over the next two years through the rehabilitation and up-rating of existing assets showcasing our commitment to meeting the rising demand for clean energy in Kenya,” Njenga said.
Additionally, he highlighted the company’s diversification into geothermal consultancy and the development of the Green Energy Park in Naivasha.
The park, with a four-phase plan from 2025 to 2045, aims to foster economic growth and innovation by integrating industrial and non-industrial activities, aligning with global trends in renewable energy and sustainable development.
The geothermal power plants at the park now have a combined capacity of about 800MW, positioning KenGen as a leader in sustainable energy generation.