KenGen Shareholders Approve Major Governance Reforms to Boost Investor Confidence
By Peace Muthoka
Nairobi, February 12, 2026 – Kenya Electricity Generating Company PLC (KenGen) has taken a bold step to reassure investors after shareholders approved sweeping governance reforms aimed at strengthening board independence and protecting minority interests.
The resolutions were passed during a Extraordinary General Meeting (EGM) held on Thursday, February 12, 2026, with strong participation from shareholders across the world. The move signals a new chapter for the state-backed power producer, which supplies more than 60 percent of Kenya’s electricity.
While the Government of Kenya remains the majority shareholder, company leaders made it clear that what changed is not ownership, but oversight.
“These changes are about predictability and trust,” KenGen Chairman Hon. Alfred Agoi said after the meeting. “They strengthen independence at board level while preserving the government’s position as majority shareholder.”
The reforms come at a time when private investors are increasingly demanding stronger governance standards in state-controlled listed firms. KenGen’s leadership framed the overhaul as a structural upgrade designed to align the company with international governance standards for publicly listed firms with dominant state shareholders.
Agoi said the meeting complied fully with the recently enacted Government Owned Enterprises Act 2025, which seeks to strengthen governance, accountability and performance across state-owned enterprises.
“Shareholders have approved key governance reforms that strengthen board independence, enhance accountability, and modernize our oversight framework,” he said.
He emphasized that the resolutions were meant to accommodate representation of all shareholder interests at board level.
“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,” Agoi explained.
Importantly, he assured investors that the government’s stake remains intact.
“Even after today’s EGM, the Government of Kenya remains the majority shareholder, and as such, there has been no change to the company’s ownership structure,” he said. “What has changed is the strength of our governance architecture.”
At the heart of the reforms 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. The provision seeks to limit political exposure and reduce perceived governance risk.
For minority investors, the most significant reform is the introduction of a ring-fenced voting mechanism. The mechanism allows non-state shareholders to elect independent directors without participation from the majority shareholder. This gives minority investors a direct voice in shaping board oversight.
Managing Director and CEO Eng. Peter Njenga said strong governance is not just about compliance, but about lowering financial risk.
“Strong governance lowers risk premiums,” Njenga said. “That matters when you are financing large-scale energy infrastructure over decades as we plan to do between now and 2034.”
Earlier in the day, Njenga told the media that the adopted resolutions reinforce the institutional stability required to manage long-term, capital-intensive energy investments.
“These resolutions strengthen our governance framework and reinforce the institutional stability required to manage long-term, capital-intensive energy investments,” he said.
He added that the inclusive governance structure gives management the clarity and confidence needed to execute the company’s G2G 2034 Strategy.
“The all-inclusive governance structure gives management the clarity, confidence, and accountability needed to execute and deliver results under our ongoing G2G 2034 Strategy,” Njenga noted.
KenGen’s strategic direction, he said, remains unchanged. The company will continue to deliver reliable and affordable power while maintaining strong financial performance.
“Kenyans can remain confident in KenGen’s commitment to powering the country’s growth responsibly and efficiently,” he said.
The governance reset comes as KenGen pushes ahead with capital-intensive investments across geothermal, hydro, nuclear, solar and wind energy. These projects require long-term funding visibility and stable policy backing, making investor confidence critical.
Njenga revealed that electricity demand continues to grow steadily. The system peak demand currently stands at 2,444.40 megawatts, recorded on January 14, 2026. The highest gross energy demand to date is 45,323.22 megawatt-hours, recorded on December 5, 2025.
As demand rises, the company says it is optimizing its existing generation fleet while accelerating expansion in renewable energy.
“Across our portfolio, we are improving plant performance, reducing operational risk, and driving cost efficiencies,” Njenga said. “These actions are essential to supporting national energy security and maintaining a stable electricity supply as demand continues to grow.”
Looking ahead, KenGen aims to deliver an additional 1,500 megawatts under its G2G 2034 Strategy. The company has pledged to uphold high safety and environmental standards while creating long-term value for shareholders and Kenyans alike.
“We reaffirm our commitment to disciplined execution under the G2G 2034 Strategy,” Njenga said. “We will continue to operate efficiently and effectively to deliver the targeted 1,500MW, uphold the highest standards of safety and environmental stewardship, and create sustainable long-term value for our shareholders and for all Kenyans.”
With the governance overhaul now approved, KenGen is sending a clear message to the market: stronger oversight, clearer structures and greater inclusivity will anchor its next phase of growth as it powers Kenya’s future.
