The Kenya Electricity Generating Company (KenGen) will not issue dividends despite reporting a 79 per cent growth in net earnings for the first half of the year ended December 31, 2024.
Instead, the listed power generator will re-invest the amount in a longterm strategy aimed at maximising shareholders’ value.
In October, dividends for the 2024 financial year more than doubled to Sh0.65 from Sh0.30 in the previous year after net earnings grew 35.5 per cent to Sh6.79 billion from Sh5.01 billion in 2023.
This was revealed in the firm’s half-year results released on Thursday where net profit hit Sh5.3 billion up from Sh2.96 billion in the same period last year, a gain primarily driven by aggressive cost-cutting measures and enhanced operational efficiencies.
The firm achieved a 49.4 per cent increase in operating profit, hitting Sh6.65 billion from Sh4.45 billion in the previous period.
This was fuelled by a 13.7 per cent reduction in operating expenses, which fell to Sh17.67 billion from Sh20.47 billion.
Revenues, on the other hand, remained stable at Sh27.5 billion.
“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” said Peter Njenga, the company’s managing director and CEO.
“We are optimising our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country.”
The company’s finance income rose to Sh2.45 billion from Sh1.87 billion, augmented by higher returns on cash investments and a more stable Kenyan shilling.
Finance costs dropped to Sh1.13 billion from Sh1.49 billion, reflecting improved capital management and debt optimization.
KenGen remains at the forefront of Kenya’s renewable energy transition, supplying 4,291GWh of electricity in the half-year period, up from 4,211GWh in the previous period.
This increase was primarily supported by improved hydrology and the availability of our generation fleet. The firm is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term blueprint aimed at bolstering Kenya’s green energy transition.
Between 2025 and 2027, the company plans to add 194.4MW of installed capacity across geothermal, hydro, and solar projects, along with 100MWh of battery energy storage to enhance grid stability.
With a strong balance sheet and a firm commitment to sustainability, KenGen is positioning itself as a key player in Africa’s clean energy future.
KenGen’s earnings per share (EPS) surged by 78 per cent to Sh0.80, up from Sh0.45, reinforcing the company’s ability to create shareholder value in a dynamic energy market.
KenGen’s boss has indicated that the company remains at the heart of Kenya’s transition to a low-carbon energy future, leveraging its geothermal stewardship and renewable energy expertise.
“With a resilient business model,
strong financial fundamentals, and
a clear vision for growth, KenGen
is primed to play a catalytic role in
shaping the future of Africa’s energy
industry.”
