(NAIROBI, KENYA) – Kenya Electricity Generating Company has cut its dividend payout by 16.7% as it directs more cash into plant and equipment to expand electricity generation and meet rising demand. Shareholders will receive KES 0.75 ($0.0058 / £0.0045) per share for the year ended June 2026, amounting to KES 4.94 billion ($38.4 million / £30 million). This is a drop from KES 0.90 ($0.007 / £0.0055) per share, or KES 5.94 billion ($46.2 million / £36.1 million), paid for the previous year.
The dividend cut comes as KenGen’s net profit fell slightly to KES 10.35 billion ($80.5 million / £62.8 million) from KES 10.48 billion ($81.6 million / £63.6 million) a year earlier. The company used cash generating investment assets to strengthen its electricity generation infrastructure.
Purchases of property, plant and equipment increased by KES 1.94 billion ($15.1 million / £11.8 million) to KES 15.5 billion ($120.6 million / £94.1 million) in the year under review. This was funded by liquidation of part of its assets, including fixed bank deposits. The move reduced income from financial assets to KES 2.86 billion ($22.3 million / £17.4 million) from KES 4.11 billion ($32 million / £25 million).
KenGen said profit after tax remained broadly stable at KES 10.35 billion compared with KES 10.48 billion in 2025, a marginal shift of 1.2%. The company said the change was mainly due to a reduction in finance income from KES 4.1 billion ($31.9 million / £24.9 million) to KES 2.9 billion ($22.6 million / £17.6 million) following the use of cash resources for capital investments meant to expand and strengthen Kenya’s electricity generation infrastructure.
KenGen last year started rehabilitation of its Olkaria 1 plant to increase generation to 63 megawatts from 45 megawatts. The firm is also set to expand its hydropower generation and begin its first solar power production.
Peter Njenga, the CEO of KenGen, said expanding renewable capacity and strengthening system resilience will help protect consumers from the volatility linked to fossil fuel generation. He said it will also create the energy foundation for Kenya’s industrial transformation.
The drop in net profit is KenGen’s first in five years. The last decline was in the year to June 2021, when profit fell to KES 1.83 billion ($14.2 million / £11.1 million) from KES 18.38 billion ($143 million / £111.6 million) the previous year.
KenGen said the KES 0.75 per share dividend will be paid on 21st January 2027 to shareholders on the firm’s register by 29th October 2026.
KenGen, the single biggest supplier of electricity to Kenya Power, said it sold 8,975 gigawatt hours to the national grid in the review period, up from 8,482 gigawatt hours the previous year. This helped drive revenue to KES 59.7 billion ($464.6 million / £362.5 million) from KES 56.1 billion ($436.6 million / £340.6 million).
Rising electricity consumption has prompted KenGen to expand its power generation capacity in geothermal and hydro sources in addition to its first solar power production. Peak demand hit a new high of 2,549 megawatts on 15th July 2026, showing the rise in consumption that has triggered KenGen’s expansion plans.
Besides the Olkaria 1 plant expansion, KenGen is set to increase the capacity of the Gogo Hydropower plant to 8.6 megawatts from 2 megawatts. The company also plans to build a 42.5 megawatt solar plant in the Seven Forks area and lease 58.42 megawatts of geothermal wellheads.
KenGen accounted for 57.2% of the total electricity supplied to Kenya Power in the year ended June 2026. More than 90% of KenGen’s electricity comes from geothermal, hydro and wind sources. The company plans to deepen this through expansion of some plants and the first solar power plant.