Kenya's primary electricity generator, KenGen, has posted a remarkable 54% surge in profit after tax to KES 10.48 billion for the financial year ending June 2025, paving the way for a significantly higher dividend payout to its shareholders.

The robust performance, announced following the company's 73rd Annual General Meeting in Nairobi, allows for a dividend of KES 0.90 per share, a substantial increase from the KES 0.65 paid out the previous year. This decision underscores the firm's solid financial footing, which analysts attribute to a strategic blend of aggressive cost management and a successful revenue diversification push.

While total revenue held steady at KES 56.1 billion, the company's profitability was supercharged by an 11% reduction in operating expenses to KES 35.1 billion. A more favourable foreign exchange environment also turned a previous year's loss into a KES 1.45 billion gain. Perhaps most critically for its long-term strategy, income from diversified activities, primarily geothermal consultancy, skyrocketed by 235%.

Powering a Growing Nation

This financial upswing comes as KenGen continues to anchor Kenya's national grid, supplying approximately 60% of the country's electricity. The results are set against a backdrop of surging national energy consumption, which hit a new peak demand of 2,418.77MW in November, reflecting growing industrial and household activity. KenGen's installed capacity of 1,786MW generated 8,482GWh over the past year to meet this rising demand.

Chairman Alfred Agoi noted that the dividend increase mirrors the utility’s stronger financial position and strategic execution. "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 stated at the AGM.

Forging a Regional Energy Footprint

Beyond its balance sheet, KenGen is aggressively expanding its influence across the continent. Its expertise in geothermal energy has secured high-value consultancy contracts in several African nations. The company is actively pursuing projects and partnerships in:

• Ethiopia
• Djibouti
• Eswatini
• Tanzania
• Zambia
• Bhutan

This expansion is a core pillar of the company's long-term "G2G 2034 Strategy," which aims to add 1,500MW of new renewable capacity and 500MWh of energy storage. Managing Director Peter Njenga emphasized this forward-looking approach. "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."

As KenGen moves to implement its ambitious growth plan, including potential involvement in the massive High Grand Falls hydropower project, its dual role as Kenya's energy bedrock and a rising regional consultant is set to deepen, powering homes and economies well beyond national borders.