KenGen (Kenya Electricity Generating Company) is set to hold an Extraordinary General Meeting on February 12th 2026, to seek approval from shareholders for the listed firm to amend sections of its corporate governance statutes.
The listed firm becomes one of the first state-owned enterprises to enhance compliance with the new Government Enterprises Act 2025, signed into law by President William Ruto on November 21st 2025.
KenGen proposes to cut down its bloated board of directors to bring the number to 9, split ordinary shares into class A and B, appoint two independent board seats with the specific mandate of protecting the interests of minority shareholders, limit the terms under which a director can sit on its board to six years and tighten rules on political appointments to its boardroom.
These drastic corporate governance changes aim to formalise minority protection and shield the board from political interference and pressure.
The listed power generating company is undertaking these governance changes in compliance with the Government Enterprises Act 2025, signed into law by President William Ruto on November 21st 2025.
This Act aims to enhance the governance, performance and accountability of Government-owned enterprises(GOEs).
With the new law, a number of parastatals and state corporations that will now be required to operate as commercial entities, will have to shave off the bloat in the board of directors by offloading some individuals who have earned their positions through political patronage.
A Government-owned enterprise is defined in this act, as a self-financing commercial entity that is either fully owned or at least 50% owned by the Government.
The Act provides a framework for the creation, control, governance, performance and ownership of GOEs and outlines public service obligations that these enterprises must fulfil.
At present, the KenGen Board of Directors has 14 members in addition to the Company Secretary and well as the General Manager, Finance.
The Kenya Government is the majority shareholder in KenGen, with a 70% stake. Minority shareholders include ICM Limited with 1.82%, Ramila Mavji 0.45%, Waithaka Njihia 0.34%, Individual insiders 0.791% and the general public 27.4% stake 0r 1,806,820,644 shares.
KenGen Current Independent Non Executive Board of Directors
KenGen has six non-independent executive directors that include Bernard Ngugi, Julius Migos Ogamba (Chairman of the Board), William Rahedi, Rebecca Peiyai Ntalamia Kudate Engineer John Kipngetich Mosonik and Josephine Koisaba.
At Kenya Power and Lighting Company, a firm related to KenGen, the firm has 13 members on the Board of Directors, including the Chairman and the Managing Director.
Some of the notable Government-owned enterprises that are yet to fulfil the Government Enterprises Act include National Oil Corporation, Kenya Seed Company, Mwea Rice Mills, Rivatex and New Kenya Cooperative Creameries, all these firms earmarked for privatization. The Government has a list of some 65 state-owned enterprises and 18 state corporations.
Government owned enterprises that are at various stages of compliance with the Act include Kenya Power, Kenya Reinsurance Corporation, Kenya Airports Authority, Kenya Railways Corporation and Kenya Post Office Savings  Bank and KenGen among others.
Compliance with the Government Enterprises Act is expected to save taxpayers billions and end decades of mismanagement and political interference and patronage, that has defined the face of many parastatals in Kenya.
Some of the most common corrupt practices within state corporations and parastatals include embezzlement of funds, bribery, inflating contract prices or awarding tenders to favoured companies, paying salaries to ghost workers, overpricing procured goods, abuse of office by using the position for personal gain and conflict of interest where directors having interests in other companies do business with the state enterprise where they also sit as directors.
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