KenGen Shareholders Back Governance Overhaul Aimed at Reassuring Investors

By James Nyaigoti,

Nairobi, Thursday, February 12, 2026: Shareholders of Kenya Electricity Generating Company PLC (KenGen) today 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.
PHOTO: KenGen Chairman Hon. Alfred Agoi (right) consulting with KenGen Managing Director and CEO Eng. Peter Njenga (left) and KenGen’s Company Secretary and Legal Affairs General Manager Austin Ouko (standing) during the company’s Extraordinary General Meeting held in Nairobi.

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. 

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.

Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company 
in the Eastern Africa region with an installed generation capacity market share of more than 60%. 
The company’s primary business is to provide safe, reliable, and competitively priced electric energy 
for the country in an environmentally friendly and sustainable manner while creating value for its 
stakeholders.

Today, KenGen PLC has an installed generation capacity of 1,786 MW, of which about 90% is drawn 
from green sources namely: Hydro (826 MW), Geothermal (754 MW), Wind (25.5 MW). The 
balance is from Thermal.

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