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Steadfast KenGen announces Sh1.65 billion dividends payout

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The Board of Kenya Electricity Generating Company, KenGen, has announced a dividend payout of Ksh 1.65 billion for its shareholders for the year ended June 30th, 2019.

While releasing the company’s audited results for the year ended June 30th, 2019, the MD & CEO Rebecca Miano said, “The Board is recommending a final dividend of Ksh. 0.25 for the year for every ordinary share of Ksh 2.50 which amounts to Ksh 1.65 billion for the year.”

In 2018, KenGen paid its shareholder Ksh 2.64 billion in dividends translating to Ksh 0.40 for every ordinary share. CEO Miano observed that during the period ending June 2019, business remained resilient despite challenging economic conditions in Kenya and globally. Adding, the projections indicate that the medium term macro-economic environment will be tough, compounded by the economic shocks brought about by COVID-19 pandemic.

“The short-term impact of COVID-19 on the company’s performance is likely to be reflected in the 2019/2020 earnings. In the long term, the current conditions present opportunities to diversify as the economy recovers from the crisis.”

“The company remains financially robust with the directors reiterating their commitment and confidence in the company’s ability to continue navigating the COVID-19 with associated macro and socio-economic challenges.”

In the year ended June 2019, KenGen’s energy sales grew from 7,989 GWh in 2018 to 8,277 GWh despite dilution of the market share following new entrants. The firm’s total revenue also grew from Ksh 45.30 billion in 2018 to Ksh 45.97billion in 2019, resuting in a 1.5% growth.

KenGen’s other income increased from Ksh 275 million to Ksh 619 million, mainly as a result of consultancy services, insurance compensation and tax refund.

In the year ended June 2019, no power plant was commissioned hence KenGen could not benefit from tax credits normally realized from commissioning of new power plants. The 165.4MW Olkaria V Geothermal Plant was completed and connected to the national grid in November 2019.

“The implementation of Olkaria 1 Unit 6 progressed with the plant scheduled to bring to the grid 83.3MW by 2021. Contract processes for the 140MW Olkaria VI Plant and Olkaria I rehabilitation (from 45MW to 51MW) are at advanced stages. The implementation of these projects will ensure the company’s continued growth in line with the demand for competitively priced, safe, reliable and quality electric energy in the Eastern Africa Region.” CEO Rebecca Miano said.

During the period under review, KenGen’s tax after profit declined from Ksh 7.89 billion in the previous year to Ksh 7.88 billion. KenGen also recorded a drop in profit before tax from Ksh 11.75 billion to Ksh 11.65billion for the year ended June 30th, 2019.

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