Kenya Electricity Generating Company (KenGen) has announced that it will pay out a dividend of KES 1.32 billion to its shareholders for the fiscal year ending June 30, 2022.
This comes after the company posted a profit after tax of KES 4.7 billion.
The government, which owns 70% of the shares in the company, will receive approximately KES 924 million from the payout, with the remaining going to private individuals and institutional shareholders.
The company’s Board of Directors recommended the dividend payment at the company’s 70th Annual General Meeting.
The government company’s growth strategy focuses on expanding energy generation and diversifying into geothermal development areas to create more value for shareholders.
The company’s CEO, Abraham Serem, also stated that KenGen plans to prioritize new technologies in 2023 to generate more electricity using existing power plants.
This year, we plan to leverage new technologies to rehabilitate our oldest geothermal power plant whose first unit was commissioned in 1981, the 45MW Olkaria I. This project seeks to give it a new lease of life and increase its generation capacity to about 63MW.
KenGen CEO- Abraham Serem
KenGen plans to increase its geothermal power production in the coming years by constructing new projects in Olkaria and Eburru, totalling 305MW. These projects will begin after obtaining the necessary approvals.
Additionally, the company intends to upgrade turbines at existing power plants in Olkaria I and IV, increasing their output by an extra 40MW, to boost Kenya’s energy supply and economic growth.
KenGen also aims to diversify its revenue stream by expanding into geothermal consulting and e-mobility development to ensure financial sustainability in the present and future.
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