By Jameson Mutua
Kenya Electricity Generating Company PLC (KenGen), East Africa’s largest power producer, has approved a higher dividend after posting strong earnings and operational gains for the year ended June 30.
During the company’s 73rd Annual General Meeting in Nairobi, shareholders endorsed a first and final dividend of Ksh.0.90 per share, up from Ksh.0.65 last year. The increase follows a 54% rise in profit after tax to Ksh.10.48 billion, driven by cost reductions, new revenue streams and improved foreign exchange performance.
Board Chairman Hon. Alfred Agoi said the dividend reflects confidence in the company’s financial health and long-term strategy.
“This dividend uplift is not only a reflection of strong financial results but also a reaffirmation of KenGen’s commitment to delivering value to shareholders,” he said, noting efforts to improve efficiency, diversify revenue and unlock new growth opportunities across the region.
Kenya’s economy remained resilient in 2024–25, supported by steady agricultural and industrial growth and rising electricity demand. National power consumption hit record highs in November, with peak demand reaching 2,418.77MW and energy dispatch rising to 44,555.80MWh, signaling increased industrial activity.
KenGen supplied about 60% of the country’s electricity during the year. With an installed capacity of 1,786MW, the company generated 8,482GWh.
Revenue remained stable at Ksh.56.1 billion, while income from diversified activities rose 235%, supported by geothermal consultancy work in Eswatini and increased regional projects. Operating costs fell 11% to Ksh.35.1 billion as efficiency measures took hold.
The company also recorded Ksh.1.45 billion in net foreign exchange and fair value gains, reversing a loss of Ksh.722 million the year before. Lower finance costs followed loan repayments, supporting a shift toward a leaner balance sheet.
Managing Director and CEO Eng. Peter Njenga said the performance reflects progress in delivering KenGen’s strategic priorities.
“We have strengthened efficiency, widened our geothermal consultancy footprint and accelerated delivery of new generation capacity both locally and across the region,” he said.
KenGen continues to advance its G2G 2034 Strategy, which targets 1,500MW of new renewable generation and 500MWh of energy storage to support Kenya’s energy security and low-carbon industrialization ambitions.
The company is exploring participation in the proposed 700MWh High Grand Falls hydropower project and examining battery and pumped-hydro storage options. Regionally, KenGen is expanding geothermal consultancy operations in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan. A partnership with Toshiba ESS aims to scale geothermal operations and maintenance services in developing markets.
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