Kenya Power has introduced performance contracts for more than 6,000 unionised employees, ending more than two decades of negotiations with the Kenya Electrical Traders and Allied Workers Union (KETAWU).
The company says the new framework will strengthen accountability, improve productivity and enhance service delivery as its customer base continues to expand.
The move also places Kenya Power among the first government-owned enterprises to adopt performance contracts for union staff, in line with the Government-Owned Enterprises Act, 2025.
The law requires commercial state corporations to submit annual business plans and adopt performance contracts anchored on measurable results.
Speaking during the launch in Nairobi on Wednsday, Kenya Power Managing Director and CEO Dr (Eng) Joseph Siror said the framework would help the company focus its workforce on measurable results.
“Productivity is not simply about doing more. It is about delivering better results through effective use of our time, our skills, our resources and our technology,” he said.
Siror said Kenya Power was becoming “more efficient, more reliable and more focused on our customers”, but added that excellence would require individual commitment.
“It will come from each one of us: the work we do, the targets we commit to, the standards we uphold and the results we deliver,” he said.
The process was guided by the Salaries and Remuneration Commission (SRC), which urged other public institutions to adopt similar performance management systems.
SRC Chairperson Sammy Chepkwony said bringing unionised workers into performance contracts would create a clearer link between institutional goals and employees' responsibilities.
“There is nothing more powerful than having management and staff focused on one deliverable,” he said. “It creates a direct link between organizational objectives and the activities of every employee.”
Chepkwony described the move as a “bold step” and encouraged other public institutions to establish performance management frameworks covering all cadres of staff.
Kenya Power's customer base has grown from about 370,000 customers in 1996 to 10.4 million currently, increasing pressure on the company to maintain reliable and efficient services.
The company said the new framework would allow it to monitor the productivity of all employees under one system.
Kenya Power Director Ruth Muiruri, speaking on behalf of the board chairman, said the framework had significance beyond compliance.
“It will enable attainment of corporate goals through measurable gains in service delivery,” she said.
The board, she added, would continue working with management and KETAWU leadership to ensure smooth implementation of the productivity management framework.