NAIROBI, Kenya- Shareholders of Kenya Electricity Generating Company PLC (KenGen) have approved sweeping changes to the firm’s governance framework in a move aimed at strengthening board independence and protecting minority investors.
The resolution was passed during a virtually held Extraordinary General Meeting on Thursday, as private investors continue to push for tighter governance standards across Kenya’s listed state-controlled companies.
KenGen, which supplies more than 60% of Kenya’s electricity, said the reforms would not dilute or alter the Government of Kenya’s majority stake.
Instead, company executives described the changes as a structural upgrade designed to align the utility with international best practice for publicly traded firms with dominant state shareholders.
“These changes are about predictability and trust,” Chairman Alfred Agoi said after the meeting.
“They strengthen independence at board level while preserving the government’s position as majority shareholder.”
At the heart of the overhaul is a revised board structure that expands the role of independent directors.
Under the new framework, independent directors will be required to step down if they assume political office or become employees of the government or state-owned entities — provisions aimed at limiting political exposure and reducing perceived governance risk.
For minority shareholders, the most significant reform is the introduction of a ring-fenced voting mechanism.
The structure allows non-state investors to elect independent directors without participation from the majority shareholder, a move seen as enhancing accountability and investor confidence.
Managing Director and Chief Executive Eng. Peter Njenga said the changes would support disciplined capital allocation and long-term operational performance.
“Strong governance lowers risk premiums,” he said. “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 advances capital-intensive investments in geothermal, hydro, nuclear, solar and wind energy.
The projects require long-term financing visibility and stable policy support, particularly as the utility seeks to maintain its dominant position in Kenya’s evolving energy market.
Analysts say the reforms could signal a broader shift in how state-linked firms balance government control with market-driven oversight, a dynamic increasingly scrutinised by both domestic and international investors.
