The Kenya Electricity Generating Company (KenGen) has announced a lower dividend for its shareholders for the financial year ended June 2026.
In a statement issued on Thursday, October 29, KenGen said it approved a first and final dividend of KSh0.75 per share, down from KSh0.90 paid in the previous financial year, as it increases investment in power infrastructure and reduces borrowings.
The company’s Annual General Meeting approved the payout on Thursday, with payment expected on or about January 21, 2027.
The dividend will go to shareholders whose names appear on the company’s register at the close of business on October 29, 2026.
KenGen Cuts Dividend to Shareholders After KSh15.5 Billion Investment
The decision comes as KenGen increases capital expenditure to strengthen its generation capacity, improve the reliability of existing power plants and support rising electricity demand.
During the year ended June 2026, the company invested KSh15.5 billion in power infrastructure, representing a 14.3 per cent increase in capital spending.
KenGen Board Chairman Frank Konuche said the company balanced shareholder returns with investments needed to sustain future earnings.
“We recognise the importance of dividends to our shareholders,” Konuche said.
“We also have to invest in the assets that will generate future earnings. Balancing shareholder returns, investment and debt reduction is essential to the long-term strength of the business.”
Despite the increased spending, KenGen reported a 6.4 per cent rise in revenue to KSh59.7 billion, while operating profit grew by 4.1 per cent to KSh14.2 billion.
However, profit after tax fell 1.2 per cent to KSh10.35 billion, mainly because lower finance income resulted from deploying cash into capital investments.
The company also reduced its borrowings by KSh12.2 billion to KSh97.1 billion during the financial year.
Also Read: KenGen Appoints New CEO
KenGen Supplies 57.2 Per Cent of Kenya’s Electricity
KenGen supplied 8,975 gigawatt hours of electricity to the national grid during the financial year, meeting 57.2 per cent of Kenya’s electricity demand.
More than 90 per cent of the electricity it dispatched came from renewable sources.
Managing Director and Chief Executive Officer Peter Njenga said the company was investing in its generation assets to meet the country’s growing energy needs.
“Kenya’s growing economy needs dependable electricity, and to date the peak demand is 2,549MW. Our investment is focused on keeping existing plants reliable while developing the generation capacity needed to support businesses, households and future growth,” Njenga said.
KenGen’s project pipeline includes the completed rehabilitation of Olkaria I geothermal power station, a proposed 42.5-megawatt solar plant at Seven Forks and the redevelopment of Gogo hydropower station.
The company is also pursuing battery storage projects and a proposal to raise Masinga Dam to support electricity system stability and improve water management for hydropower generation.
Also Read: Former Cabinet Secretary Moves to Claim Millions Linked to Kenya’s Power Giant KenGen
KenGen Targets New Business at Olkaria
Beyond electricity generation, the company is seeking industrial investors for its Green Energy Park at Olkaria, Naivasha.
The park is designed to bring businesses closer to geothermal electricity and steam, with target industries including food processing, manufacturing and data centres.
KenGen expects the initiative to create investment and employment opportunities while supporting the growth of Kenya’s manufacturing sector.
“Geothermal energy can do more than supply electricity to the grid,” Njenga said.
“At Olkaria, we are bringing together energy, steam and industrial land to attract businesses that can create jobs and strengthen Kenya’s manufacturing base.”
The Green Energy Park has secured special economic zone status and customs-controlled area designation, providing a framework to attract investors and develop industrial projects.
KenGen is also expanding its technical services business under its G2G 2034 Strategy. The services include geothermal drilling, resource assessment, engineering, and power plant operation and maintenance.
The company is seeking to diversify its revenue beyond electricity sales by commercialising its technical expertise.
Follow our WhatsApp Channel and X Account for real-time news updates and subscribe to our YouTube Channel for in-depth interviews.
