Kenya Power Introduces Performance Contracts for More Than 6,000 Union Employees

Kenya Power has introduced performance management contracts for more than 6,000 unionised employees, ending more than two decades of negotiations and bringing all staff under a single performance framework.

The power utility launched the contracts in Nairobi on Wednesday, August 19, 2026, in a move it says is intended to improve accountability, productivity and service delivery to its customers.

The agreement follows more than 20 years of negotiations between Kenya Power management and employees represented by the Kenya Electrical Trades and Allied Workers Union (KETAWU).

The company said the move places it among the first government-owned enterprises to introduce performance contracts for unionised staff, in line with the Government-Owned Enterprises Act, 2025.

The law requires commercial state corporations to prepare annual business plans and adopt performance contracts based on measurable results.

Kenya Power Managing Director and CEO Dr Joseph Siror said the new system would make employees more focused on measurable results and customer service.

“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,” Siror said.

He said the company was becoming more efficient and focused on customers, but added that its goal should be excellence rather than simply improvement.

“Improvement is not the destination, excellence is and it will not come from systems alone. 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 Kenya’s Salaries and Remuneration Commission (SRC), whose chairperson, Sammy Chepkwony, urged other public institutions to consider similar performance management systems.

Chepkwony said bringing unionised employees into performance contracts could create a clearer connection between institutional objectives and the work carried out by individual employees.

“There is nothing more powerful than having management and staff focused on one deliverable. It creates a direct link between organizational objectives and the activities of every employee,” he said.

He described Kenya Power’s decision as a bold step and encouraged other public institutions to establish performance frameworks covering all categories of employees.

The new framework comes as Kenya Power’s customer base has expanded sharply over the past three decades.

The company served about 370,000 customers in 1996, compared with approximately 10.4 million customers today.

Kenya Power said the growth in its customer base has increased expectations for reliable and efficient service, making productivity across its workforce increasingly important.

Under the new system, the company will monitor the performance and productivity of all employees through a single framework.

Speaking on behalf of the company’s board chairman, Kenya Power Director Ruth Muiruri said the framework was intended to go beyond meeting regulatory requirements.

“The performance management framework we have launched today holds strategic significance beyond compliance. It will enable attainment of corporate goals through measurable gains in service delivery,” Muiruri said.

She added that the board would continue working with management and KETAWU leadership to ensure the framework is implemented smoothly.