KenGen Lifts Dividend as Shareholders Approve Bold Expansion Plan at 73rd AGM
By Peace Muthoka
KenGen has raised its dividend after posting strong financial results and winning firm backing from shareholders for its long-term growth strategy. The decision came during the company’s 73rd Annual General Meeting held on Thursday in Nairobi.
Shareholders approved a first and final dividend of KSh 0.90 per share for the year ending June 30, 2025, up from KSh 0.65 last year. The increase reflects the company’s solid performance, including a 54% jump in profit after tax to KSh 10.48 billion. The strong earnings were driven by lower operating costs, improved revenue diversification and a better foreign exchange position.
KenGen Board Chairman Hon. Alfred Agoi said the improved payout signals the company’s confidence in its financial strength and future direction.
“This dividend uplift is not only a reflection of strong financial results but a reaffirmation of KenGen’s commitment to delivering value to shareholders,” he 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 economy remained resilient through 2024 and 2025, with rising demand for electricity across agriculture, industry and commercial sectors. National consumption hit record levels in November as peak demand reached 2,418.77MW and daily energy dispatch climbed to 44,555.80MWh. The surge underscored the growing pace of industrial activity.
As demand increased, KenGen continued to anchor the national grid. The company supplied about 60% of Kenya’s electricity, generating 8,482GWh during the financial year from its installed capacity of 1,786MW.
Revenue held firm at KSh 56.1 billion, while income from diversified operations grew sharply, jumping 235%. The growth came mainly from regional geothermal consultancy contracts, including work in Eswatini. Operating expenses dropped by 11% to KSh 35.1 billion due to tighter controls and greater operational efficiency.
KenGen also benefited from a favourable currency environment, recording KSh 1.45 billion in net foreign exchange and fair value gains, compared with a KSh 722 million loss the previous year. Reduced finance costs, driven by loan repayments, strengthened the company’s move toward a lower-debt position.
Managing Director and CEO Eng. Peter Njenga said the results demonstrate effective execution of KenGen’s strategic vision.
“Our financial performance reflects our positioning as a regional renewable energy leader,” he 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 G2G 2034 Strategy, which targets 1,500MW of new renewable capacity and 500MWh of energy storage to support Kenya’s energy security and low-carbon industrial ambitions. The company is exploring opportunities in the proposed 700MWh High Grand Falls hydropower project and expanding into storage technologies, including pumped hydro and battery systems.
Regionally, KenGen continues to broaden its geothermal consultancy portfolio, with work underway or emerging in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan. A partnership with Toshiba ESS aims to scale geothermal operations and maintenance services in developing markets. The company’s Geothermal Training Centre also remains a key regional hub for building technical capacity across Africa and Asia.
KenGen enters 2026 with a 252MW project pipeline that includes 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 projects are expected to strengthen grid stability, boost industrial development and accelerate Kenya’s shift toward fully renewable power.
“Our investment priorities will continue to deliver sustainable energy, create value for shareholders and support Kenya’s industrial transformation,” Eng. Njenga said.
