KenGen lifts dividend as shareholders approve growth plan at AGM

Kenya Electricity Generating Company (KenGen) has increased its dividend after reporting stronger full-year earnings, with shareholders approving the payout during the firm’s 73^rd Annual General Meeting (AGM) in Nairobi on Thursday.

Shareholders endorsed a first and final dividend of Sh0.90 per share, up from Sh0.65 in 2024, after the company’s profit after tax rose 54 percent to Sh10.48 billion on the back of lower costs, expanded revenue streams and improved forex gains.

Board chair Hon Alfred Agoi said the improved payout reflects confidence in the company’s fundamentals and long-term strategy.

“This dividend uplift is not only a reflection of strong financial results but a reaffirmation of KenGen’s commitment to delivering value to shareholders,” he said.

“We are optimising efficiency, diversifying revenue sources and unlocking new growth opportunities in the region.”

National power demand continued to rise, with peak demand hitting 2,418.77MW in November and total dispatch reaching 44,555.80MWh, pointing to increased industrial activity. KenGen supplied about 60% of the electricity consumed nationally, generating 8,482GWh from its 1,786MW installed capacity.

Revenue closed at Sh56.1 billion, while income from diversified activities grew 235 percent, driven mainly by geothermal consultancy contracts in Eswatini and other regional markets.

Operating costs fell 11 percent to Sh35.1 billion, while the company reported Sh1.45 billion in net forex and fair value gains, reversing the previous year’s loss.

Managing Director and CEO Eng Peter Njenga said the results reflect sustained progress in the company’s regional and renewable energy agenda.

“Our financial performance reflects our positioning as a regional renewable energy leader,” he said.

“We have strengthened efficiency, widened our geothermal consultancy footprint and accelerated delivery of new generation capacity both locally and across the region.”

KenGen is pushing ahead with its G2G 2034 Strategy, targeting 1,500MW of new renewable capacity and 500MWh in energy storage. The company is exploring participation in the proposed 700MWh High Grand Falls hydropower project and evaluating battery and pumped hydro storage solutions. It is also expanding geothermal consultancy work in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan.

Heading into 2026, the utility has a 252MW project pipeline, including the 63MW Olkaria I Rehabilitation, the 42.5MW Seven Forks Solar project and expansion of the 8.6MW Gogo plant in Migori County.