KenGen Approves Governance Reforms to Boost Investor Confidence
NAIROBI, Kenya, Feb 13 – Kenya Electricity Generating Company PLC (KenGen) shareholders have appproved changes to the company’s governance framework in a move aimed at strengthening board independence and minority shareholder protections, as the state-backed utility seeks to bolster investor confidence.
The resolution was approved at a duly convened Extraordinary General Meeting held virtually, as private investors increasingly assert influence over long-term capital allocation and governance discipline within Kenya’s listed state-controlled entities.
KenGen PLC, which supplies over 60% of the country’s electricity, affirmed that the approved amendments do not dilute or alter the Government of Kenya’s ownership stake.
Executives framed the reforms as a structural upgrade intended to align the company with international governance standards for publicly listed firms with dominant state shareholders.
“Today’s resolutions were principally aimed at accommodating representation of all shareholder interests at Board level, thereby strengthening inclusivity, enhancing transparency and reinforcing investor confidence in the Company’s governance framework”, said Company’s Chairman Hon. Alfred Agoi.
“These changes are about predictability and trust, they strengthen independence at board level while preserving the government’s position as majority shareholder,” he added.
At the core of the overhaul is a revised board structure that expands the role of independent directors, Under the new framework, independent directors must step down if they assume political office or become employees of government or state owned entities, provisions designed to limit political exposure and perceived governance risk.
Additionally, for minority investors, the most consequential change is the introduction of a ring fenced voting mechanism that allows non-state shareholders to elect independent directors without participation from the majority shareholder.
KenGen Managing Director and CEO, Eng. Peter Njenga said the reforms were intended to support disciplined capital allocation and operational performance.
“Strong governance lowers risk premiums, that matters when you are financing large-scale energy infrastructure over decades as we plan to do between now and 2034.”
The governance reset comes as KenGen continues to execute capital-intensive investments in geothermal, hydro, nuclear, solar, and wind power, projects that require long-term funding visibility and stable policy backing.
“To this end, we continue to optimize our existing generation fleet while accelerating growth across geothermal, hydro, nuclear, wind, and other renewable energy sources, Across our portfolio, we are improving plant performance, reducing operational risk and driving cost efficiencies”, He added.
Mr. Njenga further noted that the actions are essential to supporting national energy security and maintaining a stable electricity supply as demand continues to grow.
To date, the system peak demand stands at 2,444.40 MW recorded on 14th January 2026. The highest gross energy demand to date is 45,323.22 MWh recorded on 5th December 2025.
The Company reiterated that they will continue to operate effectively and efficiently under the G2G 2034 Strategy to deliver 1,500MW, uphold the highest safety and environmental standards and deliver long-term value to its shareholders and all Kenyans.
“We reaffirm our commitment to disciplined execution under the G2G 2034 Strategy and continue to operate efficiently and effectively to deliver the targeted1,500MW, uphold the highest standards of safety and environmental stewardship and create sustainable long-term value for our shareholders and for all Kenyans”.
