Kenya Electricity Generating Company (KenGen) #ticker:KEGN has postponed a decision on dividend payout on the performance of last financial year until a new Auditor-General is appointed to scrutinise the power producer’s books.
The firm’s board has informed its investors that it cannot take a decision using unaudited results for the year to June 2019. Profit after tax dropped by Sh7 million to Sh7.884 billion on higher operating costs during this period.
“The board of directors shall make a recommendation regarding any final dividend for the year ended 30 June 2019 once the audit of the financial statements for the said period is completed,” Managing Director Rebecca Miano said on Friday.
KenGen paid a dividend of Sh0.40 per share amounting to Sh2.64 billion in February last year. The payment ended investors’ two-year wait. The 2015 payout was the highest in a decade, hitting Sh0.65.
The lack of a substantive Auditor-General will also delay the holding of the annual general meeting in which shareholders are supposed to approve or disapprove board’s recommendation on dividends.
The Capital Markets Authority opened a special window for listed firms to publish their financial results without approval by the Auditor-General.
However, it directed that AGMs will only be held after the accounts have been signed by the Auditor- General. KenGen’s counterpart Kenya Power said the hitch may see firms hold two AGMs in a year.
“We may have to hold two AGMs this year, one after the other, if the matter is not resolved early,” Kenya Power Chief Executive Benard Ngugi said.