The National Treasury has received Kes1.4 billion in dividends from the Kenya Electricity Generating Company (KenGen) for the year ending June 2021.

The payment follows a recommendation by the KenGen Board to pay shareholders final dividends of Kes 2.50 per share, translating to Kes 1.98 billion, of which other shareholders already received their entitlement in 2022.

Of the total dividend paid out by KenGen, Kes1.39 billion went to the Kenyan government, which owns 70 per cent of the company’s stock, and 30 per cent to private investors.

The announcement was made when KenGen presented the cheque to the National Treasury on Tuesday, which Principal Secretary Chris Kiptoo received on behalf of Cabinet Secretary Njuguna Ndung’u.

“Many companies are going through hard times now and therefore for KenGen to post profits and pay dividends is a clear testament to the company’s good management processes,” said Kiptoo.

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The PS said energy was crucial to the development of Kenya, adding that the government was keen to support new strategic areas of growth in the entire electricity value chain.

“Going forward, KenGen must grow its business to ensure you remain a major player in the energy value chain contributing between 67% and 75% of Kenya’s electricity consumption at any given time,” Ministry of Energy and Petroleum, State Department of Energy PS Alex Wachira said.

However, he has urged KenGen to focus on growing the baseload of electricity using renewable energy sources like geothermal, hydro, wind, and solar, adding that this would also help drive down the cost of electricity.

On his part, KenGen Chairman Julius Migos Ogamba lauded KenGen’s resolve to create value for its shareholders continuously.

“Today, we make a bold statement about the organizational health of your company KenGen. Truly, this is a win for Kenya as it guarantees that we will always be here to ensure the availability of reliable, clean, and competitively priced energy for Kenyans.”

Ogamba said KenGen’s continued dividend payout to shareholders demonstrates the company’s financial stability and is a good financial investment option for many investors in the Nairobi Securities Exchange.