Kenya Power launches new performance contracts for union staff

Kenya Power has launched performance management contracts covering more than 6,000 union employees, a move aimed at strengthening accountability, raising productivity and improving service delivery to customers.

The decision follows more than two decades of negotiations between management and the Kenya Electrical Traders and Allied Workers Union (KETAWU). It positions the utility among the first government-owned enterprises to place union staff under formal performance contracts, in line with the Government-Owned Enterprises Act, 2025.

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

Kenya Power Managing Director and CEO Dr. (Eng.) Joseph Siror said the initiative is designed to drive excellence rather than simply increase output. “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.

We are becoming more efficient, more reliable and more focused on our customers. But 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.

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The process was guided by the Salaries and Remuneration Commission (SRC). SRC Chairperson Sammy Chepkwony praised the company and urged other public institutions to follow suit.

“There is nothing more powerful than having management and staff focused on one deliverable. It creates a direct link between organisational objectives and the activities of every employee. I want to commend Kenya Power for this bold step and encourage other public institutions to design performance management frameworks that promote productivity across all cadres of staff,” he said.

Kenya Power’s customer base has expanded from 370,000 in 1996 to 10.4 million today. The growth has increased pressure on the company to deliver consistent, high-quality service. Under the new framework, the productivity of all staff will be monitored under a single system.

Board Director Ruth Muiruri, speaking on behalf of the Board Chairman, said the framework carries strategic weight beyond regulatory compliance. “It will enable attainment of corporate goals through measurable gains in service delivery.

The Board of Directors will continue to guide management and the leadership of KETAWU to ensure smooth implementation of the productivity management framework,” she said.