Kenya Electricity Generating Company Plc (KenGen) has released its full-year results for the financial year ended 30th June 2021 reporting a decline in Net Earnings to KSh 1.2 Billion compared to KSh 18.4 Billion in 2020, a drop of 94.6%.
The firm attributes this decline to the reversal of COVID-19 mitigation tax measures put in place by the Government.
The corporate tax rate was reduced from 30% to 25% in 2020 but reverted back to 30% in 2021 resulting in a tax expense of KSh 8.794 Billion on deferred tax compared with a credit of KSh 8.145 million in 2020. This contributed significantly to the high tax expense of KSh 13.574 Billion compared to the previous year tax credit of KSh 4.587 Billion.
However, KenGen recorded a 7% increase in pre-tax profit from 13.8 Billion in 2020 to KSh 14.8 Billion in 2021.
The KenGen Board has recommended a first and final dividend of KSh 0.30 per ordinary share which amounts to KSh 1,978 Million, the same as the amount paid out in 2020.
KenGen aims to deliver Olkaria I Unit 6 geothermal power plant, which will add 83MW to the national grid by end of December 2021.
At the same time, the company aims to progress the milestones towards the commencement of the 140MW Olkaria VI geothermal power plant through a Public-Private Partnership.
Today, KenGen PLC has an installed generation capacity of 1,818MW, of which over 86% is drawn from green sources namely- Hydro (826MW), Geothermal (713MW), Thermal (253MW), and Wind (26MW).
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