Connect with us

Business News

KenGen Agrees Full Dividend Payment Of Sh1.65 Billion To Shareholders

Published

on

Kenya Electricity Generating Company PLC (KenGen) has agreed to pay a total dividend of Ksh1.65 billion to its shareholders.

The Board of KenGen agreed to the recommendation to pay the final dividend of Ksh0.25 for the year for every ordinary share of Ksh2.50.

The shareholders made the decision during the company’s virtual 67th Annual General Meeting (AGM) on Tuesday, November 3, 2020. The announcement comes when Kenya and the world at large are struggling to combat challenges caused by the COVID-19 Pandemic.

At the AGM, KenGen Managing Director & CEO, Rebecca Miano, highlighted key advancements of the company during the period under review. These include two mega contracts the company is currently undertaking in Ethiopia, unveiling of the Community Engagement Strategy, expansion of the company’s energy capacity and diversification, which has been instrumental in creating new revenue streams.

KenGen Board Chairman, Joshua Choge, mentioned the company’s capacity expansion projects that will ensure KenGen continues to compete competitively and retain its market leadership.

In 2018, the company paid its shareholder Ksh2.64 billion in dividends which translated to Ksh0.40 for every ordinary share.

During the period ending June 2019, business remained resilient despite challenging economic conditions in the country and globally, the chairman added.

To create more value for its stakeholders, KenGen is focusing on diversification, a strategy that has seen the company earn additional revenues.

During the year ended June 2019, the company’s energy sales grew from 7,989 GWh in 2018 to 8,277 GWh despite the dilution of the market share following new entrants. KenGen’s total revenue grew from Ksh45.30 billion in 2018 to Ksh45.97billion in 2019, leading to a 1.5% growth.

Additionally, the company is exploring business growth through collaboration and partnership with development agencies.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

East Africa Optimistic The U.S. Will Revive Trade Talks

This came to the fore as leaders from the EAC congratulated Biden for his election win, with many expressing hopes that his presidency will boost ties with the regional bloc.

Published

on

The East African Community is optimistic that U.S. President-elect Joe Biden will revive the negotiations and implementations of the EAC-U.S. Trade and Investment Partnership.

This came to the fore as leaders from the East African Community congratulated Biden for his election win, with many expressing hopes that his presidency will boost ties with the regional bloc.

The Trade and Investment Framework Agreement (TIFA), which is a trade pact that establishes a framework for expanding trade and resolving outstanding disputes between countries, was agreed between U.S. and EAC partner states in June 2012, but was never implemented.

TIFA was signed on July 16 2008, as a framework for expanding trade and investment between the U.S. and EAC.

But since United States President Trump took over from his predecessor Barack Obama in 2016, not much has been heard from the arrangement.

Read also: Kenya, UK, Secure Trade Deal

“We all look forward to working with the new US administration and of course hope that America’s trade and investment policies will also advance the interests of East Africa. Reviving TIFA is one of them,” said Prof Manasseh Nshuti, EAC chairperson of the Council of Ministers, who is also Rwanda’s Minister of State in charge of the East African Community.

“EAC is better negotiating multilateral trade rather than bilaterally. This is because at the end of the day, what happens in Kenya affects Rwanda, Uganda, and Tanzania, in terms of trade and investments.”

In April 2016, Ministers from EAC and U.S. signed the EAC-US Co-operation Agreement on Trade Facilitation, Sanitary and Phytosanitary (SPS) Agreement and Technical Barriers to Trade (TBT) but so far very little has been implemented despite the existence of agreed work plans.

Under the United States-East African Community-Trade and Investment Framework Agreement, partners consult on a wide range of issues related to trade and investment, but under President Donald Trump, this was never implemented.

Related: Kenya to be in breach of EAC, AfCFTA rules in proposed American trade deal

Topics for consultation and possible further cooperation include market access issues, labour, the environment, protection and enforcement of intellectual property rights, and in appropriate cases, capacity building.

However, since 2016, the negotiations for the regional investment treaty stalled due to lack of consensus on the approach for discussions on the regional investment treaty.

“The U.S. has TIFAs with countries at different levels of development and trade and investment interests but none with the EAC,” said Dr. Peter Mathuki, CEO East African Business Council.

“As the private sector, we are expecting the revival of an up-scaled US-EAC Trade and Investment Partnership under U.S. presidential elect Joe Biden.”

EAC’s Director-General of Customs and Trade Kenneth Bagamuhunda also said he looks forward to a return to a multilateral trading system “where the trade rules will prevail over unilateralism”.

“We look forward to engagement with the US as a bloc at EAC and Continental level.”

Continue Reading

Business News

Ivory Coast, Ghana Cancel Hershey’s Cocoa Sustainability Schemes

Published

on

The world’s largest producers of cocoa, Ivory Coast and Ghana have cancelled sustainability schemes organised by US-based chocolate manufacturer, Hershey.

Both countries accused the company of avoiding the payment of a cocoa premium, aimed at improving the financial state of farmers in their countries.

According to Reuters, both countries found Hershey demanding very high volumes of physical cocoa on the ICE futures Stock exchange. The countries, who produce 2/3rd of the world’s total cocoa said the company did that to avoid paying the premium, called the living income differential (LID).

The countries have also accused Fuji Oil Holdings of playing a part in helping Hershey in the schemes.

The schemes, according to the chocolate manufacturers are to protect cocoa of any environmental and human rights abuses, meaning it was rightly sourced and is devoid of any problems that will affect its global sales. The company added that by the West African giants’ disruption of the schemes, farmers may not be able to get premium on their products again.

Hershey is the manufacturers of Hershey’s Kisses and Kit Kat and source for their cocoa mainly from Ghana and Ivory Coast.

Hershey recently entered into a deal to make physical cocoa available at the ICE Futures exchange. This is expected to reduce demands in cocoa from Ghana and Ivory Coast and also avoid the premium charged by the government.

Last year, the Ghanaian and Ivorian governments set the LID for cocoa at $400 a tonne. This is to ensure that farmers make as much money as possible but the harsh realities of the coronavirus pandemic have dealt sales a huge blow.

“The Cocoa Merchants Association of America (CMAA) is condoning and conniving with American companies against poor West African cocoa farmers”,  regulators in both countries said.

Continue Reading

Business News

Aviation: Airlines Fares up 100% And Operating Costs Rise

Published

on

Continue Reading

Trending