Kenya Power introduces performance contracts for 6,000 workers: What this means for employees
Kenya Power has implemented performance management contracts for over 6,000 unionized employees to improve corporate accountability. This move aligns the state-owned utility with new government regulations requiring measurable results from commercial state corporations.
Why it matters
This represents a significant shift in labor relations for state-owned enterprises in Kenya, potentially setting a precedent for public sector productivity reforms.
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Kenya Power has formally introduced performance management contracts for its unionisable workforce, bringing more than 6,000 employees under a structured accountability framework for the first time in the company's history.
Kenya Power has signed performance contracts for 6,000 workers. Photo: KPLC. Source: Twitter The contracts were launched in Nairobi on Wednesday, August 19, 2026, following negotiations spanning more than two decades between Kenya Power management and the Kenya Electrical Traders and Allied Workers Union (KETAWU).
The development places Kenya Power among 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 adopt performance contracts anchored on measurable results.
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