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.