KenGen boosts dividend as profit surges 54%
Kenya Electricity Generating Company PLC (KenGen) approved a higher dividend Thursday after reporting strong full-year earnings driven by cost reductions, diversified revenue and improved foreign exchange gains, Dec. 4, 2025.
The company’s 73rd Annual General Meeting endorsed a first and final dividend of Ksh.0.90 per ordinary share for the financial year ended June 30, up from Ksh.0.65 a year earlier.
KenGen posted a 54% rise in profit after tax to Ksh.10.48 billion. Executives attributed the gains to tighter cost controls, increased income from regional consultancy work and improved currency conditions.
“This dividend uplift is not only a reflection of strong financial results but a reaffirmation of KenGen’s commitment to delivering value to shareholders,” said Hon. Alfred Agoi, the company’s chairman. He said KenGen is optimizing efficiency, expanding revenue lines and pursuing growth across East Africa to support Kenya’s clean energy transition.
Kenya’s economy showed resilience through 2024-25, with rising electricity demand and record national consumption in November. Peak demand reached 2,418.77 megawatts and daily energy dispatch hit 44,555.80 megawatt-hours, signaling stronger industrial activity.
KenGen supplied about 60% of the nation’s electricity during the year. Its installed capacity stands at 1,786 megawatts, generating 8,482 gigawatt-hours. Revenue remained steady at Ksh.56.1 billion, while income from diversified activities increased 235%, supported by geothermal consultancy contracts in Eswatini and expanded regional operations. Operating costs fell 11% to Ksh.35.1 billion. Net foreign exchange and fair value gains totaled Ksh.1.45 billion, reversing a loss of Ksh.722 million the previous year. Finance costs also declined following loan repayments.
“Our financial performance reflects our positioning as a regional renewable energy leader,” said Eng. Peter Njenga, the managing director and CEO. He said KenGen has improved efficiency, expanded its geothermal consultancy footprint and accelerated development of new generation capacity.
The company is executing its G2G 2034 Strategy, which targets 1,500 megawatts of additional renewable capacity and 500 megawatt-hours of storage. KenGen is also exploring opportunities in the proposed 700 megawatt-hour High Grand Falls hydropower project and considering battery and pumped-storage solutions. Regionally, it continues to expand geothermal consulting in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan, supported by a partnership with Toshiba ESS.
KenGen’s Geothermal Training Centre is training specialists across Africa and Asia to position Kenya as a geothermal hub. The company enters 2026 with a 252-megawatt project pipeline, including the 63-megawatt Olkaria I Rehabilitation, the 42.5-megawatt Seven Forks Solar project and the expansion of the 8.6-megawatt Gogo Power plant in Migori County.
Njenga said the company’s investments will strengthen grid stability, support industrial growth and accelerate the transition to renewable power.
