KenGen, Kenya’s biggest electricity producer, has proposed a first and final dividend of KES 0.75 per share for the year ended June 30, 2026, down 16.7 percent from KES 0.90 the previous year, the company said in its annual results.
The dividend equals a payout ratio of 48 percent of earnings per share, which came in at KES 1.57 for the year. At a share price of KES 12.55, the dividend gives a forward yield of 6.0 percent, down from a trailing yield of 7.2 percent.
The dividend is subject to shareholder approval at the Annual General Meeting, set for October 29, 2026. If approved, KenGen will pay shareholders on or around January 21, 2027. Shareholders on the company’s register at close of business on October 29, 2026, will qualify.
Financial results for the year showed revenue of KES 59.7 billion, up 6.4 percent from KES 56.1 billion. Electricity supplied rose 5.8 percent to 8,975 GWh. Operating expenses rose 6.8 percent to KES 37.5 billion, and operating profit rose 4.1 percent to KES 14.2 billion.
Finance income fell 30.4 percent to KES 2.86 billion. Finance costs fell 12.1 percent to KES 1.98 billion. Profit before tax fell 2.7 percent to KES 15.1 billion, and profit after tax fell 1.2 percent to KES 10.35 billion.
| Metric | FY2026 | Change (YoY) |
|---|---|---|
| Revenue | KES 59.7 billion | +6.4% |
| Electricity supplied | 8,975 GWh | +5.8% |
| Operating expenses | KES 37.5 billion | +6.8% |
| Operating profit | KES 14.2 billion | +4.1% |
| Finance income | KES 2.86 billion | -30.4% |
| Finance costs | KES 1.98 billion | -12.1% |
| Profit before tax | KES 15.1 billion | -2.7% |
| Profit after tax | KES 10.35 billion | -1.2% |
| Earnings per share | KES 1.57 | -1.3% |
| Dividend per share | KES 0.75 | -16.7% |
Net cash generated from operating activities fell to KES 30.8 billion from KES 39.6 billion. Cash used in investing activities rose to KES 19.9 billion from KES 17.0 billion. Net cash used in financing activities rose to KES 13.0 billion from KES 9.1 billion. Cash and cash equivalents at year end fell to KES 26.7 billion from KES 30.1 billion.
The cut follows a year of rapid dividend growth. Shareholders approved a payout of KES 0.90 per share in December 2025 after profit after tax rose 54 percent to KES 10.48 billion for the year ended June 2025, up from KES 0.65 per share the year before that and KES 0.20 per share in 2022. At the time, Chairman Alfred Agoi said the increase reflected “solid results and our commitment to delivering value to shareholders.” Khusoko has tracked KenGen’s dividend history through several reporting cycles, from KES 0.25 per share in 2019 to the record KES 0.90 per share paid out last year.
KenGen last cut its payout in the 2019 financial year, when it lowered the dividend to KES 0.25 per share from KES 0.40 the year before, after profit before tax and net earnings both declined.
