Kenya Electricity Generating Company (KenGen) has cut its final dividend by 16.67 per cent to KSh 0.75 per share for the year ended June 30, 2026, down from KSh 0.90 the previous year, after profit after tax slipped 1.2 per cent to KSh 10.35 billion.
The reduction follows a 30.4 per cent drop in finance income to about KSh 2.86–2.9 billion, which the company linked to the strategic use of cash for capital investments in electricity generation infrastructure.
Revenue, however, rose 6.4 per cent to KSh 59.7 billion from KSh 56.1 billion, driven by higher electricity demand. Peak demand hit a record 2,549 MW, and KenGen supplied 8,975 GWh to the national grid, up 5.8 per cent.
Key Financial Results
| Metric | FY2026 | Change (YoY) |
|---|---|---|
| Revenue | KSh 59.7 billion | +6.4% |
| Electricity supplied | 8,975 GWh | +5.8% |
| Operating profit | KSh 14.2 billion | +4.1% |
| Finance income | KSh 2.86 billion | -30.4% |
| Finance costs | KSh 1.98 billion | -12.1% |
| Profit before tax | KSh 15.1 billion | -2.7% |
| Profit after tax | KSh 10.35 billion | -1.2% |
| Earnings per share | KSh 1.57 | -1.3% |
| Dividend per share | KSh 0.75 | -16.7% |
Operating expenses rose 6.8 per cent to KSh 37.5 billion. Finance costs fell 12.1 per cent to KSh 1.98 billion as the company continued loan repayments. Total borrowings dropped by KSh 12.2 billion to KSh 97.1 billion.
Cash and cash equivalents ended the year at KSh 26.7 billion, down from KSh 30.1 billion.
Why the Dividend Was Cut
KenGen said profit after tax remained broadly stable despite the small decline. The board still recommended a payout representing about 48 per cent of earnings per share.
The lower finance income resulted from deploying cash into long-term generation projects rather than holding it in interest-earning deposits. Management framed this as investment for future capacity growth.
Chief executive Peter Njenga said the results showed the company’s ability to meet rising electricity needs while investing for the future.
“Every additional megawatt of dependable, renewable power strengthens the economy, supporting homes, hospitals, schools, industries and the enterprises creating opportunities for millions of Kenyans,” he said.
Dividend Timeline
Shareholders will vote on the KSh 0.75 first and final dividend at the annual general meeting scheduled for October 29, 2026.
If approved, payment is expected around January 21–27, 2027. Shareholders on the register at the close of business on the AGM date will qualify.
At a recent share price of about KSh 12.55, the proposed dividend equates to a forward yield of roughly 6 per cent.
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Context for Investors
The cut follows a strong prior year. For the year ended June 2025, KenGen raised its dividend to KSh 0.90 after profit after tax jumped 54 per cent to KSh 10.48 billion.
Underlying operations remain solid. Higher dispatch and revenue growth show demand for electricity continues to rise. The company has also expanded its long-term renewable energy pipeline significantly in recent months.
KenGen remains Kenya’s largest electricity generator and supplies a majority of the national grid, with most of its output from renewable sources including geothermal, hydro and wind.
Bottom Line
KenGen’s core business grew in the year to June 2026, but lower returns on cash and continued capital spending led to a modest profit dip and a reduced dividend. The payout still offers a solid yield, and the AGM will decide the final distribution.
Investors will watch how the company’s expansion projects translate into future earnings and whether the dividend stabilises or recovers in the next cycle.
Sources: KenGen FY2026 results announcements; The Standard (standardmedia.co.ke); Khusoko; The Star. Figures subject to final audited statements and shareholder approval. This article is for information only and is not investment advice.