Kiharu Member of Parliament Ndindi Nyoro is set to receive Sh32.3 million from Kenya Power following the company's 50 percent increase in dividend payout for the year ended June 2026. As the top individual investor in Kenya Power with a 1.1 percent stake, Nyoro owns 21.5 million shares. The increased dividend payout is a significant boost to Nyoro's investment, which he accumulated when the company's shares were trading at a low of Sh1.58 per share in 2023.
Kenya Power announced a final dividend of Sh1.20 per share, combined with an interim payout of Sh0.30, bringing its full-year distribution to Sh1.50 per share, up from Sh1 per share paid in the prior year. This move is expected to benefit not only Nyoro but also other investors who have stakes in the company. The National Treasury, as the majority shareholder with a 50.09 percent stake, is set to receive Sh1.46 billion in dividends. Other notable shareholders include Nehemia Ikuah with 12.2 million shares and Carl Ogola with 10.5 million shares.
Nyoro has been harvesting capital gains from the growth of Kenya Power's share price, with regular cuts to his stake. Between February and April this year, he disposed of 2.57 million shares valued at approximately Sh44.24 million. His current stake is valued at Sh491.3 million based on Friday's closing price of Sh22.75 per share. If left unchanged, his initial stake would now be valued at Sh739.3 million. This significant growth in share value has made Nyoro one of the top beneficiaries of Kenya Power's return to profitability.
Kenya Power's electricity sales jumped 12 percent to 12,777 Gigawatt-hours (GWh) in the year under review, compared to 11,403GWh a year ago. However, this growth did not translate to a similar increase in revenue due to a reduction in the base tariff across all consumer categories. Electricity revenue rose 8.6 percent to Sh238.24 billion, with the slow growth attributed mainly to the year-on-year drop in base tariffs for all consumers.
Despite the slower growth in net profit of 2.1 percent to Sh24.9 billion, Kenya Power's Board is pleased to recommend a final dividend of Sh1.20 per ordinary share for the year ended 30 June 2026. The company's return to profitability and incremental dividend payouts have benefited investors like Nyoro, who bet on low-priced equities in anticipation of a change in tide. Other politicians, including leader of majority at the National Assembly Kimani Ichungwa and Thika MP Alice Ng'ang'a, have also taken positions in Nairobi Securities Exchange-listed firms.
Nyoro's investment in Kenya Power has yielded significant returns, with his latest dividend payout nearly equivalent to his initial investment in the stock. His stake in the company has been valued at over Sh739 million, making him one of the top individual shareholders. The Hirani Family, with a combined 22.4 million shares, is another notable shareholder in Kenya Power.
Kenya Power's 50 percent increase in dividend payout is a significant move, indicating the potential gains for investors who bet on low-priced equities. The company's growth in electricity sales and revenue has benefited investors like Nyoro, who have seen significant returns on their investments. With the National Treasury as the majority shareholder, the company's dividend payout is expected to have a positive impact on the government's revenue.
Key points
- Kenya Power hikes dividend payout by 50 percent
- Ndindi Nyoro to receive Sh32.3 million as top individual investor
- Company's growth in electricity sales and revenue benefits investors
