CorporateFinance

KenGen posts 93.5% drop in full year net profit to Ksh.1.19 billion

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.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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