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Kenya Power and Lighting Company (KPLC) has turned its fortunes around, reporting a remarkable net profit of Sh30.08 billion for the financial year ended June 30, 2024.
This performance was a significant recovery from the Sh3.19 billion net loss recorded the previous year.
The power utility’s revenue from electricity sales grew by 21% to Sh231.12 billion, driven by increased customer connections and heightened economic activity, particularly in the manufacturing sector.
Finance costs also fell significantly due to a stronger shilling, helping the company announce a dividend payout of Sh0.70 per share, its first in seven years.
Windfall for Ndindi Nyoro
This dividend payout is a windfall for shareholders like Ndindi Nyoro, the Kiharu MP, who emerged as one of the company’s top 20 shareholders as of June 30, 2024.
Holding 20,079,800 ordinary shares, Nyoro stands to gain a dividend of Sh14,055,860 subject to withholding tax where applicable, assuming he has retained his stake in the company.
According to Kenya Power, only shareholders registered in its books by the close of business on December 2, 2024, will be eligible for the payout, which is expected to be made in January 2025.
Value of Kenya Power Shares Over Time
Nyoro’s investment in Kenya Power has not only positioned him to earn a handsome dividend but has also significantly appreciated in value.
At the current share price of Sh 5.22 (as of January 3, 2025), his holding is worth Sh104,016,756 marking a substantial rise from its value earlier in the year.
As of January 17, 2024, when Kenya Power's shares hit a 52-week low of Sh1.32, Nyoro’s shares were worth just Sh26,505,336.
This means that his investment has grown by an astounding Sh77,511,420, or nearly 300%, in less than a year.
Nyoro’s big bet on Kenya Power appears to have been a calculated one, paying off handsomely as both a dividend earner and a capital appreciation asset.
Before venturing into politics, Ndindi Nyoro established himself as a notable entrepreneur in Kenya, building a diverse business portfolio that spanned stock brokerage, telecommunications, and construction.
Recently, he made headlines by purchasing 20 million shares in infrastructure company TransCentury Plc, positioning himself as the fourth-largest shareholder