By Njeri Irungu
December 4-2025,
Nairobi, Kenya.
Kenya Electricity Generating Company PLC (KenGen) has raised its dividend following a year of strong financial performance, with shareholders on Thursday backing the state-listed utility’s ambitious growth strategy during its 73rd Annual General Meeting in Nairobi.
The company approved a first and final dividend of Ksh.0.90 per ordinary share for the financial year ended June 30, up from Ksh.0.65 the previous year. The uplift comes on the back of a 54% surge in profit after tax to Ksh.10.48 billion, driven by tighter cost controls, diversified income streams and improved foreign exchange gains.
Board Chair Hon. Alfred Agoi said the enhanced payout underscored confidence in KenGen’s financial position and long-term direction.
He noted that the company is “optimizing efficiency, diversifying revenue sources and unlocking new growth opportunities across the region,” adding that the dividend increase signals KenGen’s commitment to sustaining shareholder value while accelerating Kenya’s clean-energy transition.
The results come at a time when the broader Kenyan economy remains steady, with rising industrial activity pushing national electricity demand to record highs. In November, peak demand climbed to 2,418.77MW, while daily energy dispatch hit 44,555.80MWh, reflecting increased production and consumption across sectors.
KenGen, which continues to anchor the national grid, supplied about 60% of the country’s electricity during the year. Its installed capacity remains at 1,786MW, generating 8,482GWh over the period. Revenue stood at Ksh.56.1 billion, while income from diversified activities rose sharply—up 235%, boosted by geothermal consultancy work in Eswatini and other regional markets.
The company’s cost-management efforts yielded dividends, with operating expenses falling 11% to Ksh.35.1 billion. KenGen also reported Ksh.1.45 billion in foreign exchange and fair-value gains, reversing a loss the previous year, while finance costs eased due to continued loan repayments.
Managing Director and CEO Eng. Peter Njenga said the performance reflects disciplined execution of KenGen’s strategic priorities and its growing leadership in renewable energy across Africa.
He highlighted the company’s advancement of its G2G 2034 Strategy, which targets an additional 1,500MW of renewable capacity and 500MWh of energy storage to bolster Kenya’s long-term energy security. KenGen is in discussions to join the proposed 700MWh High Grand Falls hydropower project and is assessing storage technologies, including battery systems and pumped hydro.
Regionally, the company is expanding its geothermal consultancy footprint, with projects underway or emerging in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan. A partnership with Toshiba ESS is also set to deepen KenGen’s geothermal operations and maintenance expertise in developing markets.
KenGen’s Geothermal Training Centre continues to strengthen Kenya’s global reputation as a hub for geothermal capacity-building, training specialists from across Africa and Asia.
Looking ahead, the company enters 2026 with a 252MW project pipeline that includes the 63MW Olkaria I Rehabilitation, the 42.5MW Seven Forks Solar project, and expansion of the 8.6MW Gogo hydropower plant in Migori County. These initiatives, once completed, are expected to enhance grid reliability, power industrial growth and accelerate Kenya’s push toward a fully renewable energy mix.
“Our investment priorities remain focused on delivering sustainable energy, creating long-term value and supporting Kenya’s industrial transformation,” Eng. Njenga said.
