New framework: Kenya Power introduces new types of contracts for 6,000 emloyees

This story has significance for readers across Kenya and beyond.

- Kenya Power launched performance management contracts covering more than 6,000 unionisable employees across the company

- The move ended over two decades of negotiations between Kenya Power management and the Kenya Electrical Traders and Allied Workers Union

- The Salaries and Remuneration Commission guided the process and challenged other public institutions to adopt similar frameworks

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.

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.

What the Contracts Mean for Union Employees

Under the new framework, each of the more than 6,000 union employees will be assessed against formal, agreed targets linked directly to their roles and the company's broader corporate objectives.

The company will monitor whether those targets are met, and employees will be expected to account for any shortfall.

The framework does not automatically affect basic pay or employment status; the specific consequences for underperformance will depend on applicable labour agreements and the terms of individual contracts.

Kenya Power's Managing Director and CEO, Joseph Siror, said the initiative was about delivering better results rather than simply increasing output.

"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.

SRC and Board Back the Initiative

The Salaries and Remuneration Commission (SRC) guided the rollout of the performance contracts. SRC Chairperson Sammy Chepkwony used the launch to call on other public institutions to adopt similar frameworks.

"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.

Ruth Muiruri, Kenya Power's director, speaking on behalf of the Board Chairman, described the framework as strategically significant beyond regulatory compliance.

"It will enable attainment of corporate goals through measurable gains in service delivery," she said, adding that the Board would continue to guide management and KETAWU leadership to ensure smooth implementation.

Kenya Power's customer base has grown from approximately 370,000 in 1996 to 10.4 million today, and the company said the performance framework is intended to ensure that service delivery keeps pace with that expansion.

Source: TUKO.co.ke

Reporting originally appeared via TUKO. Read the full source for additional context.