KenGen to payout Ksh.1.98B to shareholders for year ended June 2020

Kenya Electricity Generating Company PLC (KenGen) will pay its shareholders Ksh. 1.98billion in dividends.

This follows Thursday’s approval by shareholders of the Board’s recommendation for a first and final dividend payment of Ksh. 0.30 per ordinary share of Ksh. 2.50.

“The progress we have been able to make as an institution has mainly been driven by deliberate strategic decisions taking into account the prevailing operating environment, business sustainability, trends and market needs,” said Rebecca Miano, KenGen Managing Director & CEO.

She was speaking during the company’s 68th Annual General Meeting (AGM) which was held virtually owing to the Coronavirus Disease (COVID-19).

The dividend payout for the year ended June 2020 is an increase from the Kshs 1.65 billion paid to the shareholders in 2019.

Mrs Miano said the company’s capacity expansion and diversification agenda contributed to the results and growth achieved during the year the year.

She pointed out that under the Corporate strategy, KenGen had been able to expand its revenue sources and international footprint.

“It is under this strategy that we now have on-going contracts to drill geothermal wells in Ethiopia and Djibouti and also provide geothermal consultancy services in Kenya. We are happy this direction we have taken is paying off and are determined to continue with it so that we can provide more value to you, our shareholders,” said Mrs. Miano.

She also highlighted the achievements attained during the period, adding that the company envisioned to add another 83.3 MW to the national grid by the end of 2021 following the completion of Olkaria 1 Unit 6 geothermal power plant.

The Managing Director added that going forward, the company would focus on delivering ongoing projects and pursuing new ones in Kenya and beyond.

During the year ended June 2020, KenGen announced a Ksh. 13.9billion profit before tax which translated into 18% growth from the previous financial year during which the company announced Ksh. 11.6billion profit before tax.

The company’s profit after tax improved from Ksh. 7.88billion to Ksh. 18.4billion, an increase that the company attributed to a Ksh. 8.1billion reduction in corporate tax rate from 30% to 25% as per the Government’s relief measures to support companies navigate through the COVID-19 crisis.

In his address, KenGen Board Chairman, General (Rtd.) Samson Mwathethe said the company was pleased to have delivered positive results amidst a challenging business environment.

The company, he added, would continue implementing its corporate strategy to ensure sustainable electricity supply in the country, while leveraging on innovation and partnerships for business growth and diversification.