KenGen Lifts Dividend as Profits Surge 54%, Signals Aggressive Push for New Renewable Capacity.

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KenGen Lifts Dividend as Profits Surge 54%, Signals Aggressive Push for New Renewable Capacity.

From left: KenGen Chairperson Alfred Agoi, Managing Director and CEO Eng. Peter Njenga, and Energy PS Alex Wachira address a press briefing in Nairobi on Thursday.

By Jeff Oyugi 

Nairobi - December 4, 2025

Kenya Electricity Generating Company has raised its dividend payout after posting a strong financial performance for the year ended June 30, underscoring renewed investor confidence and the company’s expanding regional footprint in renewable energy.

At its 73rd Annual General Meeting held in Nairobi on Thursday, shareholders approved a first and final dividend of 0.90 shilling per share, up from 0.65 shilling last year. The higher payout follows a 54% jump in profit after tax to 10.48 billion shilling, driven by lower operating costs, diversified revenue streams and improved foreign exchange gains.

KenGen Chairperson Alfred Agoi said the company’s strong performance reflects disciplined financial management and its strategic role in powering the region’s energy transition.

“This dividend uplift is not only a reflection of strong financial results but a reaffirmation of KenGen’s commitment to delivering value to shareholders,” Agoi said. “We are optimizing efficiency, diversifying revenue sources and unlocking new growth opportunities in the region.”

Kenya’s broader economy remained resilient in the 2024 to 2025 period, supported by growth in agriculture and industry. Electricity consumption surged to historic highs in November, with peak demand reaching 2,418.77MW and total energy dispatch climbing to 44,555.80MWh, reflecting rising industrial activity and a growing consumer base.

KenGen supplied about 60% of the country’s electricity during the year, supported by its installed capacity of 1,786MW, which generated 8,482GWh.

Revenue remained stable at 56.1 billion shilling, while income from diversified activities mainly geothermal consultancy rose 235%, buoyed by expanded contracts in Eswatini and other regional markets. Operating costs dropped 11% to 35.1 billion shilling following efficiency enhancements and tighter cost management.

The company also posted net foreign exchange and fair value gains of 1.45 billion shilling, a reversal from the previous year’s 722 million shilling loss, as the shilling stabilized. Reduced finance costs after loan repayments further strengthened its balance sheet.

Managing Director and CEO Eng. Peter Njenga said the results affirm KenGen’s position as a regional clean energy leader.

“We have strengthened efficiency, widened our geothermal consultancy footprint and accelerated delivery of new generation capacity both locally and across the region,” he said.

KenGen is advancing its long-term G2G 2034 Strategy, which targets 1,500MW of new renewable generation and 500MWh of energy storage to support Kenya’s low-carbon industrial ambitions.

The company is in talks to participate in the proposed 700MWh High Grand Falls hydropower project and is exploring modern storage technologies, including battery systems and pumped hydro. Regionally, KenGen is deepening its geothermal consultancy presence in Ethiopia, Djibouti, Eswatini, Ngozi and Bhutan, supported by a partnership with Toshiba ESS to expand operations and maintenance services.

Its Geothermal Training Centre continues to draw specialists from across Africa and Asia, solidifying Kenya’s status as a global geothermal hub.

Heading into 2026, KenGen has a near-term project pipeline of 252MW, including the 63MW Olkaria I Rehabilitation, the 42.5MW Seven Forks Solar Plant and the expansion of the 8.6MW Gogo Power Plant in Migori County. These investments are expected to enhance grid stability, spur industrial growth and accelerate Kenya’s progress toward a fully renewable power system.

“Our investment priorities will continue to deliver sustainable energy, create value for shareholders and support Kenya’s industrial transformation,” Njenga said.

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