KenGen cuts dividend as it invests Sh1.9bn in equipment

Kenya Electricity Generating Company (KenGen) has cut its dividend payout by 16.7 percent with the firm instead investing more cash in its plant and equipment to bolster electricity generation to meet rising demand.

Company disclosures show that shareholders will get Sh0.75 per share for the year ended June 2026 amounting to Sh4.94 billion, which will be a drop from the Sh0.90 paid (Sh5.94 billion) for the previous year.

The dividend cut comes at a time KenGen’s net profit marginally fell to Sh10.35 billion from Sh10.48 billion a year ago as the firm tapped its cash-generating investment assets to beef up its electricity generation infrastructure.

Purchases of property, plant and equipment increased by Sh1.94 billion to Sh15.5 billion in the year under review, funded by liquidation of part of its assets including fixed bank deposits. The move reduced the income from its financial assets to Sh2.86 billion from Sh4.11 billion.