Kenya Electricity Generating Company PLC (KenGen) has announced a dividend payout of Sh2 billion for the year ending 2023, representing the first and final dividend payouts of Sh0.3 per share.
This substantial payout is among the highest the company has made since the 2016 Rights Issue.
The announcement follows the company's robust financial performance, with a notable Sh5.2 billion in profits after tax, indicating its enduring financial health and stability.
The dividend decision reflects KenGen's commitment to delivering value to its shareholders.
Julius Ogamba, the Board chairperson, emphasized the company's strength in business fundamentals, innovation culture, and a robust expansion strategy, attributing these factors to sustained profitability and consistent growth in shareholder value.
"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 stated.
Peter Njenga, KenGen's CEO, outlined the company's priority focus areas for 2024, highlighting a commitment to adopting new technologies to enhance electricity generation using existing power plants.
"We are on course with new initiatives to increase generation capacity by more than 154MW 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 explained.
In addition to its core focus on power generation, KenGen is strategically diversifying its portfolio.
The company aims to delve into geothermal consultancy and leverage its green energy park in Olkaria to drive financial sustainability in the future.
KenGen's dividend payout, coupled with its strong financial performance and strategic initiatives, positions the company as a key player in Kenya's energy sector, contributing to the nation's clean energy goals and economic growth.
Investors and stakeholders can anticipate continued value creation as the company moves forward with its ambitious plans and commitment to innovation and sustainability.