Kenya Electricity Generating Company (KenGen) posted a 93.5 percent drop in its net profit to Ksh.1.19 billion for the year ended June 30, 2021.
The drop was attributed to high tax expenses.
“It is important to note that as a result of the reversal of the government tax relief COVID-19 measures on the corporate tax rate from 25% back to 30%, there was a substantial impact on our profit after tax,” said KenGen in a statement.
The company, however, posted a 7 percent increase in the profit before tax from Ksh.13.79 billion to Ksh.14.76 billion.
Revenue increased by 4.06 percent from Ksh.44, 110 million in 2020 to Ksh.45, 901 million in 2021.
This was mainly attributed to revenues from geothermal, hydro generation and diversification venture at Tulu Moye in Ethiopia.
The ongoing geothermal drilling services in Tulu Moye contributed Ksh.1, 784 million compared to Ksh.440 million in the previous year.
KenGen board has recommended a first and final dividend of Ksh.0.30 for the year 2021 per ordinary share which amounts to Ksh.1,978 million.