Kenya Electricity Generating Company PLC (KenGen) will pay a total dividend of Sh1.65 billion to its shareholders.
Shareholders on Tuesday approved the payment of the final dividend of Sh0.25 for the year for every ordinary share of Sh2.50 at the firm’s Annual General Meeting (AGM) held virtually.
The board had withheld the dividend declaration pending the audit of its results following the vacancy in the Auditor General's position in August last year.
The returns for investors are however lower compared to 2018 whenthe firm paid out Sh2.64 billion as dividends translating to Sh0.40 for every ordinary share.
KenGen managing director, Rebecca Miano, highlighted key business progress the company made during the period under review.
These include two multi-million shillings contracts the company is currently undertaking in Ethiopia and the unveiling of the community engagement strategy.
Others are the expansion of the company’s energy capacity and diversification, which has been instrumental in creating new revenue streams.
Board chairman Joshua Choge said the company’s expansion would ensure it continues to competitively retain its market leadership.
In 2018, the company paid its shareholder Sh2.64 billion in dividends, which translated, to Sh0.40 for every ordinary share after a two-year dry spell.
To create more value for its stakeholders, KenGen is focusing on diversification, a strategy that has seen the company earn additional revenue.
During the year ended June 2019, the company’s energy sales grew from 7,989 GWh in 2018 to 8,277 GWh despite the dilution of the market share following new entrants.
KenGen’s total revenue grew to Sh54.9 billion from Sh45.3 billion in 2018, leading to a 1.5 per cent growth.
Even so, the firm recorded flat annual profits of Sh7.8 billion from reduced steam revenues emanating from lower geothermal production and higher operating costs.
The company is exploring business growth through collaboration and partnership with development agencies.