Why KenGen Increased Its Dividends

Kenya, 5 December 2025 - KenGen’s decision to significantly raise shareholder dividends marks an inflection point for the company and the wider energy market, signalling a renewed era of financial robustness, operational discipline, and strategic clarity.

The move follows a strong financial year in which the company posted a net profit of KSh 10.48 billion, a 54% surge that reflected tightened cost controls, enhanced operational efficiency and a growing contribution from diversified revenue streams.

On the back of this performance, the Board approved a higher dividend of KSh 0.90 per share, up from KSh 0.65, offering shareholders one of the most substantial year-on-year increases in recent memory.

This upward revision is not merely a payout gesture but a statement of confidence in the company’s strengthened fundamentals.

Energy Principal Secretary Alex Wachira underscored the significance of the move, calling it “a clear affirmation that KenGen is evolving into a model of financial discipline and strategic foresight.”

He added that the increased dividend demonstrates that “a well-run public utility can deliver both national energy security and attractive returns to its investors,” framing the company’s trajectory as central to Kenya’s long-term renewable energy vision.

Inside the company, the dividend decision is viewed as an outcome of sustained internal reforms rather than short-term financial luck.

Managing Director Peter Njenga described the moment as a validation of years of restructuring and operational recalibration.

“What we are witnessing is the result of deliberate, consistent effort,” he said.

“Our priority is twofold: to reward our shareholders and to build the next generation of clean energy assets that will power Kenya’s future. The strength of our balance sheet gives us the confidence to do both without compromise.”

His comments reflect a leadership team intent on pairing investor confidence with an ambitious capital investment agenda.

Board Chair Charles Alfred Agoi offered an equally weighty endorsement, describing the dividend increase as “a strategic signal that KenGen is entering a new chapter—one defined by resilience, innovation and disciplined growth.”