Nairobi — Kenya Electricity Generating Company (KenGen) has approved governance reforms granting private investors the power to elect independent directors, in a move aimed at strengthening board independence and boosting investor confidence.

Under the new framework, non-state shareholders will elect independent directors without participation from the majority shareholder.

Previously, the Kenyan government, which owns 70 percent of the power producer, exclusively elected independent directors.

The changes were approved during an Extraordinary General Meeting held virtually, where shareholders also expanded the role of independent directors.

The new rules require independent directors to step down if they assume political office or become employees of government or state-owned entities, measures designed to reduce political exposure and governance risks.

Chairman Alfred Agoi said the reforms are meant to enhance predictability and trust while maintaining government control as majority shareholder.

Managing Director and CEO Eng. Peter Njenga added that stronger governance would help lower financing costs as KenGen rolls out long-term investments in geothermal, hydro, nuclear, solar and wind power projects through 2034.