Nairobi, Wednesday January 27th, 2021: The Leading energy producer, KenGen, has announced a Ksh.13.9 Billion profit before tax for the Financial year ended June 2020. This translates to 8.3% growth in profit from the previous financial year where the company announced Ksh 11.6 Billion profit before tax.
The increase was mainly attributed to the additional revenue contribution by the 165MW Olkaria V geothermal power plant and proceeds from the ongoing geothermal drilling project in Ethiopia.
“We reported a 13.4% growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14%,” the Managing Director & CEO, Mrs. Rebecca Miano, said.
Consequently, the Board has recommended a first and final dividend for the year of Ksh.0.30 per ordinary share of Ksh.2.50. This will be presented during the company’s upcoming Annual General Meeting (AGM) for approval. Recently, the company made a dividend payout of Kshs 1.65 billion to its shareholders.
At the same time, KenGen’s profit after tax improved from Ksh.7.88 billion to Ksh.18.4 billion, an increase that the company attributes to a Kshs 8.1 billion reduction in corporate tax rate from 30% to 25% as per the Government’s relief measures to support companies navigate through the COVID-19 crisis. “We appreciate the support provided by the Government during this unprecedented time to enable us to continue providing electricity as an essential service,” said KenGen’s Managing Director and CEO, Mrs. Rebecca Miano.
She further indicated that in as much as the country’s hydrological conditions were favorable with dams recording full capacity, hydropower production declined by 2% following constrained demand associated with the effects of COVID-19 pandemic on electricity consumption.
Mrs. Miano stated that in response to the pandemic, KenGen continued to implement business continuity measures to minimize the impact of the pandemic on operations to ensure continued generation of electricity.
During the year ended June 2020, KenGen’s operating expenses were at Ksh.14 billion compared to Ksh.13.9 billion in the previous year. “We continue to optimize operating costs by leveraging on digital transformation,” Mrs. Miano added.
Mrs. Miano said the company would also continue implementing its Corporate Strategy to ensure sustainable power growth in the country, while leveraging on innovation and partnerships for continued business growth and diversification.
“In the year ahead, we aim to deliver Olkaria I Unit 6 geothermal power plant, which will add 83.3MW to the national grid, and continue with our diversification strategy focusing on consultancies, operations and maintenance services, training, and the operationalization of materials testing laboratory and electronic instruments calibration center,” the CEO said.
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Nairobi, Tuesday February 9th, 2021: Leading power producer, Kenya Electricity Generating Company PLC (KenGen) has today paid the National Government Ksh 1,153,856,022 in dividends for the financial year ended June 2019.
The National Treasury & Planning Cabinet Secretary, Amb. Ukur Yatani, received the cheque from KenGen Board Chairman, General (Rtd.) Samson Mwathethe. Also present during the cheque presentation ceremony held at the National Treasury was KenGen Managing Director & CEO, Mrs. Rebecca Miano.
The National Treasury CS lauded KenGen’s positive financial performance adding that as Government, they were proud to be associated with the company. The Government owns 70% stake at KenGen while 30% is owned by private shareholders.
CS Yatani noted that as the country’s leading energy producer, KenGen was a major player in the Government’s efforts towards the country’s growth and development. “ Energy is critical for the country’s growth and development. We take cognizance of the important role played by KenGen in growing the economy,” the CS said.
During the event, Gen. Mwathethe said: “We are indeed privileged and honoured to pay the Government Ksh 1,153,856,022 in dividend at a time when businesses are facing enormous challenges occasioned by the Coronavirus Disease (COVID-19) pandemic.”
He expressed gratitude to the Government for consistent support over the years, saying it had contributed to KenGen’s growth and positive performance.
For the year ended June 2020, KenGen announced a Ksh 13.9 billion profit before tax, translating into 8.3% growth in profit from the previous financial year.
The Board has recommended a first and final dividend for the year of Ksh 0.30 per ordinary share of Ksh 2.50, which will be paid to shareholders once ratified in the next annual general meeting (AGM), Gen. Mwathethe said.
Speaking at the event, the company’s Mrs. Miano said KenGen’s diversification strategy was bearing fruit as the organization had been able to incorporate new business lines in its revenue streams including consultancy services.
The company is currently offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.
She also expressed optimism in the company’s ability to navigate the COVID-19 Pandemic which led to widespread socio-economic challenges.
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