KenGen Shareholders Approve Governance Reforms to Boost Investor Confidence

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By Irene 


 Shareholders of Kenya Electricity Generating Company PLC (KenGen) have approved sweeping changes to the company’s governance framework in a move aimed at strengthening board independence, protecting minority investors, and reinforcing market confidence in the state-backed power producer.

The resolutions were passed during a virtually convened Extraordinary General Meeting (EGM), reflecting growing investor focus on governance discipline and long-term capital allocation within Kenya’s listed state-controlled enterprises.
KenGen, which generates more than 60 percent of the country’s electricity supply, emphasized that the amendments do not dilute or alter the Government of Kenya’s majority ownership.

 Instead, company leadership described the reforms as a structural enhancement designed to align the utility with international best practices for publicly listed firms with significant state shareholding.
“These changes are about predictability and trust,” said KenGen Chairman Hon. Alfred Agoi following the meeting. “They strengthen independence at board level while preserving the government’s position as majority shareholder.”

At the heart of the reforms is a restructured board framework that increases the role and safeguards of independent directors. Under the new provisions, independent directors will be required to relinquish their positions if they assume political office or become employees of the government or state-owned entities — a measure aimed at limiting political exposure and mitigating perceived governance risks.

For minority shareholders, the most significant reform is the introduction of a ring-fenced voting mechanism. The provision allows non-state investors to elect independent directors without participation from the majority shareholder, enhancing minority representation and oversight within the board.

Managing Director and Chief Executive Officer Eng. Peter Njenga noted that the governance reforms are directly linked to the company’s long-term financing strategy.

“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.”

The governance reset comes at a pivotal time for KenGen as it undertakes capital-intensive investments across geothermal, hydro, solar, wind, and planned nuclear power projects. These long-term projects require substantial financing and sustained investor confidence, particularly as the company seeks both domestic and international capital to expand Kenya’s generation capacity.

Analysts say the reforms could position KenGen more favorably in global capital markets by reducing governance-related risk perceptions often associated with state-controlled enterprises.

With energy demand projected to rise steadily in the coming years, KenGen’s leadership expressed confidence that stronger governance structures will support prudent capital deployment, operational efficiency, and sustainable growth — reinforcing the company’s central role in powering Kenya’s economic transformation.

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