KenGen shareholders have given the green light to major governance reforms aimed at boosting board independence and protecting minority investors. The changes, ratified at an Extraordinary General Meeting, come as the state-owned utility seeks to attract investor confidence while advancing its long-term energy projects.
The reforms reflect growing demands from private investors for stronger oversight and greater influence over decision-making in state-controlled companies. KenGen, which provides over 60 percent of Kenya’s electricity, stressed that the adjustments would not reduce or affect the government’s majority stake in the company.
Executives framed the reforms as a structural alignment with global governance standards for listed companies dominated by state ownership. “These changes are about predictability and trust,” said the company’s chairman, Alfred Agoi, following the meeting. “They strengthen independence at board level while preserving the government’s position as majority shareholder.”
Central to the overhaul is a new board framework that increases the role and authority of independent directors. The rules require directors to resign if they take on political roles or join government agencies or state-owned entities, a move intended to reduce political exposure and improve investor confidence.
For minority shareholders, a key innovation is the introduction of a ringfenced voting system. This mechanism enables non-state investors to elect independent directors without interference from the majority shareholder, ensuring a more transparent process and giving minority voices a stronger presence on the board.
Managing Director and Chief Executive Officer Eng. Peter Njenga highlighted the financial rationale behind the reforms. “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.”
KenGen is pursuing major investments across geothermal, hydro, nuclear, solar, and wind power, projects that demand large upfront funding and policy stability. Strengthening governance is seen as critical to accessing more favorable financing terms both locally and abroad.
Executives said the reforms aim to demonstrate that state ownership can coexist with transparent and accountable management. The changes are focused on reinforcing institutional discipline rather than altering ownership, signaling the company’s commitment to stability and long-term planning.
The virtual Extraordinary General Meeting mirrors a wider trend of shareholder activism in Kenya, as investors increasingly seek oversight mechanisms in state-backed firms. By aligning its governance practices with international norms, KenGen positions itself as a reliable and transparent investment destination.
With shareholder approval secured, the company now moves forward with greater emphasis on board independence, accountability, and financial stability, laying a foundation for its ambitious energy expansion plans through 2034.
