Kenya Electricity Generating Company (KenGen) has declared a dividend pay-out of KES 545 million to its private shareholders. This decision was made following approval by shareholders during the 71st Annual General Meeting (AGM) held on November 30, 2023.
A dividend pay out refers to the distribution of profits or earnings by a company to its shareholders. It represents the portion of the company’s earnings that is distributed to shareholders as a return on their investment in the company’s stock.
They are typically made on a regular basis, such as quarterly or annually, and are often expressed as a certain amount per share owned by the shareholder, in this case a payment of KES 0.3 per share, totalling KES1.9 billion
“This milestone pay out is part of the approved KES 1.978 billion dividend allocation for the fiscal year ending June 30, 2023, marking one of the highest dividends distributed by KenGen since its 2016 Rights Issue,” the firm said in a statement.
The dividend disbursement follows the company’s impressive profits after tax, amounting to KES 5.2 billion in the last financial year,and it reflects the company’s commitment to rewarding its shareholders in alignment with its robust financial performance
At the AGM, KenGen Board Chairman Julius Ogamba credited the company’s achievements to robust business fundamentals, a culture centered on innovation, and a resilient expansion plan. Ogamba highlighted that KenGen’s revenue saw a 14 percent rise, reaching KES 53.96 billion.
KenGen Managing Director and CEO Peter Njenga, reiterated the company’s 2024 priorities, emphasising a focus on new technologies to enhance electricity generation using existing power plants.
“We understand the central catalytic role energy plays in our country’s economic development and to this end, we remain focused on our 2024 and long-term strategic priorities to not only meet the growing energy demand but also offer green energy solutions to Africa,” Njenga said.
