Douglas Mwiti 
KenGen Managing Director and CEO, Eng. Peter Njenga
- KenGen Shareholders Back Governance Overhaul Aimed at Reassuring Investors;
Shareholders of Kenya Electricity Generating Company PLC (KenGen) approved 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.
Kenya Electricity Generating Company PLC(KenGen), 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.
Instead, 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.
“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 stateowned entities, provisions designed to limit political exposure and perceived governance risk.
For minority investors, the most consequential change is the introduction of a ringfenced 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,” 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 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.
