Nairobi — Kenya Electricity Generating Company (KenGen) has paid the National Treasury Sh1.4 billion in dividends for the financial year ending June 2021.
The payment follows a recommendation by the KenGen Board to pay shareholders final dividends of Sh2.50.
The pay-out translated to a total of Sh1.98 billion, of which other shareholders already received their entitlement in 2022.
Of the total dividend paid out by KenGen, Sh1.39 billion went to the Kenyan government, which owns 70 percent of the company's stock, and 30 percent to private investors.
The announcement was made when KenGen presented the cheque to the National Treasury on Tuesday, which Principal Secretary Chris Kiptoo received on behalf of Cabinet Secretary Njuguna Ndung'u.
"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 said energy was crucial to the development of Kenya, adding that the government was keen to support new strategic areas of growth in the entire 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 challenged KenGen to focus on growing the baseload of electricity using renewable energy sources like geothermal, hydro, wind, and solar, adding that this would also help drive down the cost of electricity.
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"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."
Ogamba said KenGen's continued dividend payout to shareholders demonstrates the company's financial stability and is a good financial investment option for many investors in the Nairobi Securities Exchange.
For his part, KenGen acting Managing Director and CEO Abraham Serem said the dividend payment to the National Treasury exemplified KenGen's commitment to providing value to its shareholders.
"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.
