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 chaired by the chairman Hon Alfred Agoi and attended by KenGen Managing Director and CEO Eng Peter Njenga 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.
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.
The overhaul changes include 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 state-
owned entities, provisions designed to limit political exposure and perceived
governance risk.
Minority investors most consequential change is the introduction of a ring
fenced voting mechanism that allows non state shareholders to elect independent
directors without participation from the majority shareholder.
According to Managing Director and CEO, Eng. Peter Njenga 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.
