KenGen approves higher dividend as profit surges 54% on strong operational performance

Kenya Electricity Generating Company PLC (KenGen), East Africa’s largest power producer, approved a higher dividend on Thursday after reporting a year of strong earnings and operational gains.

At the company’s 73rd Annual General Meeting in Nairobi, shareholders endorsed a first and final dividend of Ksh.0.90 per ordinary share for the financial year ended June 30, up from Ksh.0.65 last year. The increase follows a 54% rise in profit after tax, to Ksh.10.48 billion, driven by cost reductions, expanded revenue streams and an improved foreign exchange position.

KenGen’s chairman, Hon. Alfred Agoi, said the payout reflects confidence in the company’s financial 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,” Hon. Agoi said. “We are optimizing efficiency, diversifying revenue sources and unlocking new growth opportunities in the region. Our goal is to secure long-term returns while driving Kenya’s clean energy transition.”

Kenya’s broader economic environment remained resilient through 2024-25, with steady growth in agriculture and industry and rising electricity demand. National power consumption reached record highs in November, as peak demand climbed to 2,418.77MW and energy dispatch hit 44,555.80MWH (megawatt-hours), underscoring increased industrial activity.

KenGen continued to anchor the national grid, supplying roughly 60% of the country’s electricity. The company’s installed capacity stands at 1,786MW, which generated 8,482GWh over the past financial year.

KenGen profit surges 54% as clean energy strategy powers growth

Revenue held steady at Ksh.56.1 billion, while income from diversified activities surged 235%, buoyed by geothermal consultancy contracts in Eswatini and expanded regional work. Operating costs declined 11% to Ksh.35.1 billion as the company tightened cost controls and improved operational efficiency.

KenGen also recorded net foreign exchange and fair value gains of Ksh.1.45 billion, compared with a loss of Ksh.722 million the previous year, aided by a more favorable currency environment. Finance costs fell following loan repayments, reinforcing KenGen’s shift toward a lower-debt balance sheet.

Eng. Peter Njenga, the Managing Director and CEO, said the results reflect continued execution of the company’s strategic priorities.“Our financial performance reflects our positioning as a regional renewable energy leader,” Eng. Njenga 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 advancing its long-term G2G 2034 Strategy, which targets 1,500 megawatts of new renewable capacity and 500MWh of energy storage to support Kenya’s energy security and low-carbon industrialization goals.

The company is in discussions to participate in the proposed 700MWh High Grand Falls hydropower project and is exploring storage solutions, including battery energy storage systems and pumped hydro. Regionally, KenGen is expanding its geothermal consultancy portfolio, with active or emerging projects in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan. A partnership with Toshiba ESS aims to scale geothermal operations and maintenance services in developing markets.

KenGen’s Geothermal Training Centre continues to train specialists from Africa and Asia, bolstering Kenya’s role as a global hub for geothermal expertise.

The company enters 2026 with a near-term project pipeline of 252MW, including the 63MW Olkaria I Rehabilitation, the 42.5MW Seven Forks Solar project and the expansion of the 8.6MW Gogo Power plant in Migori county. These developments are expected to strengthen grid reliability, support industrial expansion and accelerate Kenya’s transition to fully renewable power.

“Our investment priorities will continue to deliver sustainable energy, create value for shareholders and support Kenya’s industrial transformation,” Mr. Njenga said.