KenGen shareholders to get Sh1.65b dividend windfall as Covid-19 bites
PAYOUT: Kenya Electricity Generating Company (KenGen) has announced a bumper Sh1.65 billion dividend payout, delivering welcome boost for shareholders at a time Covid-19 has reduced purchasing power of households.
Managing director and CEO Rebecca Miano said the board recommended a final dividend of Sh0.25 for the year for every ordinary share of Sh2.50, which amounts to Sh1.65 billion for the year ended June 30, 2019.
In 2018, the company paid its shareholder Sh2.64 billion in dividends that translated to Sh0.40 for every ordinary share.
Miano said during the period under review, business remained resilient despite challenging economic conditions in the country and globally.
She said the projections indicate that the medium term macro-economic environment will be tough, compounded by the economic shocks brought about by the coronavirus pandemic, which has slowed down the economy.
Audited results
“KenGen recognises that Covid-19 pandemic may have an impact on its business.
The short-term impact of Covid-19 on the company’s performance is likely to be reflected in the 2019/20 earnings,” Miano added while releasing the company’s audited results for the year ended June 30, 2019 in Nairobi.
Current conditions
She was, however, quick to point out that in the long term, the current conditions present opportunities to diversify as the economy recovers from the crisis.
“The company remains financially robust with directors reiterating their commitment and confidence in the company’s ability to continue navigating the Covid-19 with associated macro and socio-economic challenges,” said Miano.
Notably, during the year ended June 2019, the company’s energy sales grew from 7,989 Gigahertz in 2018 to 8,277 Gigahertz despite dilution of the market share following new entrants.
KenGen’s total revenue grew from Sh45.30 billion in 2018 to Sh45.97 billion in 2019, leading to a 1.5 per cent growth.
KenGen’s other income increased from Sh275 million to Sh619 million, mainly as a result of consultancy services, insurance compensation and tax refunds.
