Kenya Electricity Generating Company (KenGen) has secured shareholder approval for a comprehensive governance overhaul aimed at strengthening board independence, improving minority shareholder representation, and enhancing investor confidence as the company ramps up its clean energy projects.
The resolutions were adopted during a virtual Extraordinary General Meeting (EGM), reflecting strong engagement from shareholders keen to influence corporate governance within the state-controlled utility.
Additionally, the reforms align the company with the Government Owned Enterprises Act, 2025, which sets clear standards for accountability, transparency, and performance in state-owned firms.
Speaking during the meeting in Nairobi, KenGen Chairman Alfred Agoi observed that the new framework modernizes oversight without altering the government’s majority ownership.
“Shareholders have endorsed reforms that make the board more inclusive and accountable while preserving the government’s stake. This demonstrates confidence in KenGen’s governance and strengthens trust among all investors,” he reiterated.
Further, Agoi emphasized that the changes do not affect the government’s majority ownership but are aimed at improving how the company is governed.
“The board is now better structured to ensure inclusivity, transparency, and oversight. Strong governance supports strategic decision-making and long-term resilience,” he maintained.
Notably, a key feature of the governance reset is a ring-fenced voting mechanism that allows non-state shareholders to elect independent directors without interference from majority shareholders.
Directors are also now required to step down if they assume political office or join government agencies, measures analysts say will reduce governance risk and align the company with international best practices for listed firms with dominant state ownership.
The Chairman stressed that the overhaul ensures independent directors can operate free of political influence while minority shareholders now have clearer avenues to participate in board appointments.
Concurrently, Eng. Peter Njenga, KenGen’s Managing Director and Chief Executive Officer (CEO), noted that the governance reforms are essential for managing the company’s long-term, capital-intensive projects under its G2G 2034 Strategy, which aims to deliver 1,500 megawatts (MW) of additional generation capacity from geothermal, hydro, wind, solar, and emerging nuclear sources.
“Predictable governance is crucial for investors backing large-scale energy infrastructure over decades. These reforms demonstrate KenGen’s commitment to disciplined, transparent, and accountable management,” highlighted the CEO.
Njenga added that the company will continue optimizing its existing generation assets to improve performance, reduce costs, and limit operational risks, all while expanding its renewable energy portfolio.
“Our focus is to balance growth with efficiency, safety, and reliability so that Kenyans continue to receive affordable power,” he affirmed.
KenGen’s latest operational data highlight the urgency of its expansion plans. System peak demand reached 2,444 MW in January 2026, while the highest recorded energy consumption was 45,323 MWh in December 2025.
Njenga therefore insisted that meeting this rising demand requires strategic investments in both new and existing capacity, underpinned by strong governance and financial discipline.
By strengthening board independence and protecting minority interests, KenGen positions itself as a more predictable and resilient investment, particularly as it undertakes multi-decade renewable energy projects requiring long-term funding.
In addition, Njenga pointed out that the improved governance framework will also help reduce risk premiums, a critical factor for financing large infrastructure projects.
“Effective governance lowers financing risk and enhances investor confidence, which is vital as we plan for growth under the G2G 2034 Strategy,” he explained.
With the reforms in place, KenGen is positioned to continue delivering on its strategic objectives, including expansion of renewable energy, operational excellence, and sustainable value creation for shareholders and the public.
In this regard, Njenga reaffirmed that the company remains committed to operating efficiently, safely, and responsibly while upholding environmental standards.
“These governance reforms provide the clarity and accountability needed to deliver reliable and sustainable power for Kenya’s future,” he assured.
Meanwhile, the EGM outcome signals a strengthened institutional framework at KenGen, reinforcing its role as a cornerstone of the country’s energy sector.
By combining governance reforms with ambitious clean energy projects, the utility aims to meet growing electricity demand, attract long-term investment, and support Kenya’s transition to a low-carbon energy future.
By Naif Rashid
