In a landmark year for Kenya’s energy sector, both KenGen and Kenya Power have announced exceptional financial performances, marked by significant profit increases and generous dividend payouts that signal a robust turnaround in the country’s power industry.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” said Eng. Peter Njenga, KenGen’s Managing Director and CEO.
KenGen’s Remarkable Financial Performance
KenGen, Kenya’s leading electricity producer, has posted an impressive 35.5% surge in net profit to Sh6.79 billion for the fiscal year ending June 2024, driven by strong performance in its geothermal and hydroelectric operations. The company’s financial success is further highlighted by:
- A dramatic 149% increase in finance income to Ksh.4.2 billion
- Revenue growth of 4% to Ksh.56.3 billion
- Increased power generation to 8,384GWh, up from 8,027GWh
- A stable operating profit of Ksh.9.6 billion
In response to this strong performance, KenGen has increased its dividend payout to Sh0.65 per share, currently offering the highest dividend yield on the NSE at 20.6%.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future,” stated Eng. Peter Njenga, KenGen’s Managing Director and CEO.
Strategic Focus on Green Energy
KenGen’s success comes despite challenging market conditions and the strategic decommissioning of over 130MW of fossil fuel-powered plants. The company has maintained its position as a renewable energy leader, contributing to Kenya’s 90% renewable electricity generation capacity. Notable upcoming projects include:
- 42.5MW Seven Forks solar plant
- Rehabilitation of Olkaria I geothermal power plant (63MW)
- Redevelopment of Gogo hydropower station (8.6MW)
Kenya Power’s Historic Dividend Return
In a parallel development, Kenya Power (KPLC) has ended its six-year dividend drought with a significant announcement of a Ksh 0.7 per share payout, totaling Ksh 1.3 billion. This comes after recording a substantial profit of Ksh 30 billion, attributed to:
- Increased electricity sales
- Strengthening of the Kenyan shilling
- Improved operational efficiencies
Shareholders registered by December 2, 2024, will receive their dividends around January 31, 2025, subject to board approval.
Future Outlook
KenGen’s future strategy is anchored in its Good-2-Great (G2G) 2024-2034 Corporate Strategy, which aims to:
- Increase renewable energy capacity by 1,500MW
- Establish a Green Energy Park at Olkaria
- Expand commercial drilling services across the region
- Support Kenya’s goal of 100% green energy by 2030
“We are not just providing energy; we are helping to shape a greener, more sustainable future for Kenya and the region,” emphasized Eng. Njenga.
The strong performance of both utilities has injected renewed confidence in Kenya’s energy sector, with both companies’ shares seeing significant appreciation on the Nairobi Securities Exchange. This positive trajectory is expected to support continued infrastructure development and improved service delivery in Kenya’s power sector.
