Kenya Power has introduced performance management contracts for more than 6,000 unionised employees in an effort to boost productivity, strengthen accountability and improve customer service.
The development follows years of engagement between the company and the Kenya Electrical Trades and Allied Workers Union (KETAWU), which represents the affected employees.
According to Kenya Power, the initiative makes it one of the first state-owned enterprises in the country to extend formal performance contracts to unionised staff. The move also supports the requirements of the Government-Owned Enterprises Act, 2025, which calls for commercial state corporations to operate under annual business plans with measurable performance targets.
Managing Director and CEO Joseph Siror said the framework would encourage employees to make better use of their skills, time, technology and other resources to achieve improved results.
He said the company was focused on becoming more efficient, reliable and responsive to the needs of its growing customer base.
The Salaries and Remuneration Commission (SRC) provided guidance for the implementation of the performance management framework.
SRC Chairperson Sammy Chepkwony said the approach could help strengthen productivity across the public sector by ensuring that employees and management work towards shared organisational goals.
Kenya Power said the initiative was particularly important as its customer base has expanded significantly, rising from about 370,000 customers in 1996 to around 10.4 million today.
Under the new system, the company will be able to track and evaluate employee performance using a common framework across the organisation.
Kenya Power Director Ruth Muiruri, speaking on behalf of the board chairman, said the performance contracts were intended to support the company’s broader business objectives and drive measurable improvements in service delivery.
She added that the board would continue working with management and KETAWU to support the effective implementation of the new performance management system.