Kenya Electricity Jumps Most in 2 1/2 Months on Dividend Plan

Oct. 27 (Bloomberg) -- Kenya Electricity Generating Co., the East African nation’s biggest power producer, gained the most in 2 1/2 months after declaring a dividend for the year through June.

Shares in KenGen, as the company is known, advanced 7 percent to 9.90 shillings as of 11:31 a.m. in the capital, Nairobi, the biggest jump since Aug. 11.

“They maintained the dividend level despite the significant investments they are making,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said by phone today. “Its earnings exceeded expectations, investors were positive about the performance.”

KenGen said yesterday full-year profit fell 37 percent to 2.08 billion shillings ($21 million) in the 12 months through June after the company’s tax rate increased to 30 percent from 25 percent after a 5-year concession following its initial public offer ended. It will pay a dividend of 0.5 shillings per share, which is similar to the previous year.

--Editors: Ana Monteiro, Alex Nicholson

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net