KenGen to pay Ksh.1.65 billion dividends

The board of the Kenya Electricity Generating Company (KenGen) has recommended a Ksh.1.65 billion dividend pay out to shareholders.

The pay which translate to a dividend per share (DPS) of 25 cents following the company’s receipt of audited results of the year ending June 30, 2019.

The board had withheld the dividend declaration pending the audit of its result after the Auditor General Position fell vacant in August last year.

The audited results re-affirmed the company’s flat annual profits of Ksh.7.8 billion from reduced steam revenues emanating from lower geothermal production and higher operating costs.

KenGen further missed out on tax credits as the commissioning of new power plants dried up in the period.

The company’s foresees a tough operating environment ahead of the release of its financial results for the year to June 2020 even as it bets on revenue diversification to boost growth.

“KenGen recognizes that the ongoing COVID-19 pandemic may have an impact on its business. The short-term impact on the company’s performance is likely to be reflected in the 2019/2020 earnings,” said KenGen CEO Rebecca Miano whose term was earlier renewed for a further term of three years.

The company’s diversification strategy has been gaining momentum with the incorporation of new business lines including consultancy and drilling services.

Presently, the company is offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.

KenGen half year earnings to December 2019 doubled to Ksh.8.2 billion from higher revenues grossed in the period along with a Ksh.1.9 billion tax credit arising from its completion of the Olkaria IV 165 mega-watt (MW) plant in November last year.

The company is expected to approve the shareholder payment when it holds its first annual general meeting in nearly two years on October 22.