KenGen Pays Kenyan Gov't KSh 1.4b in Dividends as Treasury Decries Cash Crisis

  • Kenya Electricity Generating Company (KenGen) paid out dividends for the year ending June 2021 to its shareholders
  • The National Treasury, which controls 70% of the company stakes, bagged KSh 1.4 billion in dividends
  • Treasury Principal Secretary Chris Kiptoo commended KenGen for posting outstanding profits despite tough times affecting the energy sector

The government has received KSh 1.4 billion in dividends from the Kenya Electricity Generating Company (KenGen).

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KenGen General Manager Business Development and Strategy Elizabeth Njenga. Photo: KenGen. Source: UGC

KenGen released share dividends amounting to KSh 1.98 billion for its stakeholders for the financial year ending June 2021.

The National Treasury, which holds a controlling stake of 70%, pocketed KSh 1,384,627,226.40 from the firm.

Speaking while receiving the cheque on Tuesday, June 6, Treasury Principal Secretary Chris Kiptoo termed it a rare occasion where government receives money.

“Many companies are going through hard times now, and therefore for KenGen to post profits and pay dividends is a clear testament to the company’s good management processes,” said Kiptoo.

The company paid the first and final dividend of KSh.0.30 per ordinary share of KSh.2.50, with shareholders (30% stakes) having received it in 2022.

Energy Principal Secretary Alex Wachira lauded KenGen’s consistently delivering value to shareholders.

“KenGen should grow its business to ensure it remains a major player in the energy value chain contributing between 67% and 75% of Kenya’s electricity consumption,” said Wachira.

Wachira challenged the company to prioritise increasing the electricity load from renewable energy sources to help reduce the cost of power.

KenGen Chairman Julius Migos Ogamba said the payment showcase the company’s commitment to ensuring reliable and competitive energy to Kenyans.

“This is a win for Kenya as it guarantees that we will always be here to ensure the availability of reliable, clean, and competitively priced energy for Kenyans,” said Ogamba.