Kenya Power introduces performance contracts for unionisable employees

Kenya Power has introduced performance management contracts for more than 6,000 unionisable employees, aiming to improve accountability, productivity and customer service.

The move follows more than two decades of negotiations between the power utility’s management and employees represented by the Kenya Electrical Traders and Allied Workers Union (KETAWU).

Kenya Power said the initiative makes it one of the first government-owned enterprises to extend performance contracts to union staff, in line with the Government-Owned Enterprises Act, 2025, which requires commercial state corporations to submit annual business plans and adopt performance contracts based on measurable results.

“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,” Kenya Power Managing Director and Chief Executive Joseph Siror said during the launch.

The process was guided by Kenya’s Salaries and Remuneration Commission (SRC).

SRC Chairperson Sammy Chepkwony urged other public institutions to adopt similar frameworks, saying the inclusion of union employees in performance management could strengthen productivity across the public sector.

“There is nothing more powerful than having management and staff focused on one deliverable,” Chepkwony said.

Kenya Power’s customer base has expanded sharply from about 370,000 customers in 1996 to 10.4 million currently, increasing pressure on the utility to improve service delivery and customer satisfaction.

The company said the new framework will bring all employees under a common performance management system and link individual targets to broader corporate objectives.

Kenya Power Director Ruth Muiruri, speaking on behalf of the board chairman, said the framework was intended to deliver measurable improvements in service delivery rather than simply meet regulatory requirements.

“The performance management framework we have launched today holds strategic significance beyond compliance,” Muiruri said.

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