KenGen Raises Dividend as Shareholders Endorse Bold Growth Plan at 73rd AGM

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Kenya Electricity Generating Company PLC (KenGen) has increased its dividend payout after posting strong financial results for the year ended June 30, 2025, signaling renewed momentum in its long-term growth and clean-energy strategy.

At the company’s 73rd Annual General Meeting held in Nairobi on Thursday, shareholders approved a first and final dividend of Ksh.0.90 per share, up from Ksh.0.65 last year. The 38% increase follows a robust financial performance marked by a 54% rise in profit after tax to Ksh.10.48 billion, driven by tighter cost controls, expanded income streams and a favourable foreign exchange environment.

KenGen Chairman Hon. Alfred Agoi said the higher dividend reflects the company’s strong fundamentals and its commitment to delivering value in the long term.

“This dividend uplift is not only a reflection of strong financial results but a reaffirmation of KenGen’s commitment to delivering value to shareholders,” Hon. Agoi said. “We are optimizing efficiency, diversifying revenue sources and unlocking new growth opportunities in the region. Our goal is to secure long-term returns while driving Kenya’s clean energy transition.”

The improved financial position comes amid a resilient national economy and rising electricity demand. By November, Kenya’s peak power demand had hit a record 2,418.77MW, with energy dispatch reaching 44,555.80MWh, reflecting increased industrial activity across agriculture and manufacturing.

KenGen maintained its position as the country’s leading electricity supplier, accounting for about 60% of Kenya’s power. The company’s installed capacity stands at 1,786MW, generating 8,482GWh over the last financial year.

Revenue remained stable at Ksh.56.1 billion, while income from diversified activities surged 235%, supported by geothermal consultancy contracts in Eswatini and expanded regional operations. Operating costs declined 11% to Ksh.35.1 billion as the company improved efficiency and tightened spending.

A favourable currency environment contributed to Ksh.1.45 billion in net foreign exchange and fair value gains, compared to a loss of Ksh.722 million the previous year. Finance costs also dropped following significant loan repayments, reinforcing KenGen’s shift toward a stronger, lower-debt balance sheet.

Managing Director and CEO Eng. Peter Njenga said the results underline the company’s strategic evolution.

“Our financial performance reflects our positioning as a regional renewable energy leader,” he said. “We have strengthened efficiency, widened our geothermal consultancy footprint and accelerated delivery of new generation capacity both locally and across the region.”

The company is advancing its ambitious G2G 2034 Strategy, which targets adding 1,500MW of new renewable energy capacity and 500MWh of storage to enhance Kenya’s energy security and support low-carbon industrialization.

KenGen is exploring participation in the proposed 700MWh High Grand Falls hydropower project and evaluating new storage technologies, including battery systems and pumped hydro. Regionally, its geothermal consultancy services are expanding into Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan, backed by a partnership with Toshiba ESS to scale operations and maintenance services in developing markets.

The company’s Geothermal Training Centre also continues to build Kenya’s global influence by training specialists from across Africa and Asia.

As KenGen looks to 2026, it is progressing a 252MW project pipeline, including the 63MW Olkaria I Rehabilitation, the 42.5MW Seven Forks Solar Project, and the expansion of the 8.6MW Gogo Power Plant in Migori County. These projects aim to boost grid reliability, support industrial growth and accelerate Kenya’s shift to fully renewable energy.

“Our investment priorities will continue to deliver sustainable energy, create value for shareholders and support Kenya’s industrial transformation,” Eng. Njenga said.

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