Kenya Electricity Generating Company PLC (KenGen) Shareholders on Thursday, February 13, approved changes to the company’s governance framework a move aimed at strengthening board independence and minority shareholder protections as the state-backed utility seeks to bost investor confidence.
The resolution was approved during the General Meeting, which was held virtually, as private investors asserted influence over long-term capital allocation and governance discipline within Kenya’s listed state-controlled entities.
KenGen which supplies over 60% of the country’s electricity, confirmed that the approved amendments do not dilute or alter the Government of Kenya’s ownership stake. The upgrade is intended to align the company with international governance standards for publicly listed firms with dominant state shareholders.
“These changes are about predictability and trust,” the company’s chairman, Hon. Alfred Agoi, said after the meeting. “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. Also 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.
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.
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.
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, this matters when you are financing large-scale energy infrastructure over decades, as we plan to do between now and 2034,” he said.
