Shareholders of Kenya Electricity Generating Company (KenGen) on Thursday approved a reduced dividend of Sh0.75 a share for the year to June 2026, as the State-controlled power producer said it had stepped up spending on its plants while paying down debt.

The payout, approved at the company's annual general meeting in Nairobi, is down from Sh0.90 a share last year, a cut of about 17 per cent. It will be paid on or about January 21, 2027, to investors on the share register at the close of business on Thursday, October 29.

Results at a glance

KenGen spent Sh15.5 billion on power infrastructure during the year, 14.3 per cent more than the previous year, as it rehabilitated old stations and prepared new generation projects. The key figures presented to shareholders were:

  • Revenue up 6.4 per cent to Sh59.7 billion;
  • Operating profit up 4.1 per cent to Sh14.2 billion;
  • Profit after tax down 1.2 per cent to Sh10.35 billion, from Sh10.48 billion;
  • Borrowings cut by Sh12.2 billion to Sh97.1 billion;
  • 8,975 gigawatt hours supplied to the national grid, about 57.2 per cent of national demand, more than 90 per cent of it from renewable sources.

The company blamed the slight dip in net profit mainly on lower finance income, after cash that had been earning interest was put into capital projects.

Board chairman Frank Konuche defended the smaller payout. "We recognise the importance of dividends to our shareholders," he said, adding that the company also had to invest in assets that would generate future earnings and that balancing returns, investment and debt reduction was essential to its long-term strength.

Projects in the pipeline

Managing director Peter Njenga said Kenya's peak electricity demand now stands at 2,549 megawatts and that KenGen's spending is aimed at keeping existing plants reliable while adding capacity.

The company has completed the rehabilitation of the Olkaria I geothermal station. Other projects on its list include a proposed 42.5MW solar plant at Seven Forks, the redevelopment of Gogo hydropower station, battery storage and a proposal to raise Masinga Dam to improve water management for hydropower.

KenGen is also courting manufacturers, food processors and data centres to its Green Energy Park at Olkaria in Naivasha, which has secured special economic zone status and customs-controlled area designation. The park offers investors geothermal electricity, steam and industrial land in one place.

"Geothermal energy can do more than supply electricity to the grid," Njenga said.

Leadership change ahead

The meeting was one of the last for Njenga, who is retiring. Ronoh Kibet Charles, currently the general manager for commercial services, will take over as managing director and chief executive on February 1, 2027.

KenGen is listed on the Nairobi Securities Exchange, with the Government of Kenya as its majority shareholder.

Photos: Business Today (KenGen AGM); Macabe5387 via Wikimedia Commons (CC BY-SA 4.0). Thumbnail design: HAMASTA MEDIA.