KenGen to pay shareholders Sh1.65 billion in dividends

By KNA On Wed, 2 Sep, 2020 11:15 | 2 mins read
KenGen
KenGen Managing Director and Chief Executive Officer, Mrs Rebecca Miano. PHOTO | COURTESY

Kenya Electricity Generating Company shareholders will get a dividend payout of Sh1.65 billion for the year ended June 30, 2019.

The Company’s board is recommending a final dividend of Sh0.25 for the year for every ordinary share of Sh2.50, amounting to Sh1.65 billion for the year.

The company’s Managing Director and Chief Executive Officer Rebecca Miano, whose term has just been renewed for another three-year period, said that during the period ending June 2019, business remained resilient despite challenging economic conditions in the country and globally.

In 2018, the company paid its shareholders Sh2.64 billion in dividends which translated to Sh0.40 for every ordinary share.

In a statement to newsrooms Tuesday, Miano noted that projections indicated that the medium-term macro-economic environment would be tough, compounded by the economic shocks brought about by the Corona virus disease (Covid-19) pandemic.

“KenGen recognizes that the ongoing Covid-19 pandemic may have an impact on its business. The short-term impact of Covid-19 on the company’s performance is likely to be reflected in the 2019/2020 earnings,” she added.

She was, however, optimistic that in the long term, the current conditions present opportunities to diversify as the economy recovers from the crisis.

“The company remains financially robust with the directors reiterating their commitment and confidence in the company’s ability to continue navigating the Covid-19 with associated macro and socio-economic challenges,” she stated.

Notably, during the year ended June 2019, the company’s energy sales grew from 7,989 GWh in 2018 to 8,277 GWh despite dilution of the market share following new entrants. KenGen’s total revenue grew from Sh45.30 billion in 2018 to Sh45.97 billion in 2019, leading to a 1.5 percent growth.

 “Partnership has enabled accessibility of financial infrastructure and Postbank will allow deposits and withdraws and access to the ninety-nine branches all over the country,” said Miano.

Miano also revealed that the company is progressing with additional 439MW projects from sustainable geothermal resources, and would also continue to implement the Revamped Horizon III Good to Great (G2G) Strategy.

“The implementation of Olkaria I Unit 6 progressed with the plant scheduled to bring to the grid 83.3MW by 2021. Contract processes for the 140MW Olkaria VI Plant and Olkaria I rehabilitation (from 45MW to 51MW) are at advanced stages,” she added.

According to the statement, the implementation of these projects will ensure the company’s continued growth in line with the demand for competitively priced, safe, reliable and quality electric energy in the Eastern Africa Region.

During the period under review, the company’s tax after profit declined from Sh7.89 billion in the previous year to Sh7.88 billion.  KenGen also recorded a drop in profit before tax from Sh11.75billion to Sh11.65billion for the year ended June 30, 2019.

The company’s diversification strategy has been gaining momentum with the incorporation of new business lines including consultancy and drilling services. KenGen is currently offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.

Are you a Kenyan in the diaspora with a story to tell? Do you know someone of Kenyan origin doing something remarkable in the diaspora? Do you have an opinion that you would like to share? Email us at [email protected]