The Kenya Power and Lighting Company PLC (KPLC) has introduced performance management contracts for more than 6,000 workers to strengthen accountability, improve productivity, and enhance service delivery to customers.
In a statement on August 19, the company said the initiative follows more than two decades of negotiations between Kenya Power management and employees represented by the Kenya Electrical Trades and Allied Workers Union (KETAWU).
According to Kenya Power, the move makes it one of the first government-owned enterprises to extend performance contracts to unionised employees, in line with the Government-Owned Enterprises Act, 2025.
The company said the law requires commercial state corporations to submit annual business plans and adopt performance contracts anchored on measurable results.
Kenya Power Links Workers to Performance Targets
Speaking during the launch, Kenya Power Managing Director and Chief Executive Officer Dr (Eng.) Joseph Siror said the new system would help the company improve efficiency while ensuring employees remain focused 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,” Siror said.
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He said Kenya Power had become more efficient and reliable but noted that achieving excellence would depend on the contribution of every employee.
“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 added.
Under the new framework, employees will have measurable targets linked to the company’s wider objectives. A common system will monitor their performance to improve productivity and service delivery.
The Salaries and Remuneration Commission (SRC) guided the process.
SRC Challenges Public Institutions to Follow
SRC Chairperson Sammy Chepkwony challenged other public institutions to adopt similar performance management systems across their workforce.
Chepkwony said bringing unionized employees into performance contracts would create a stronger link between organizational objectives and the daily activities of individual employees.
“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.
He commended Kenya Power for taking the step and encouraged other public institutions to develop performance management frameworks covering all categories of employees.
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Kenya Power Customer Base Rises to 10.4 Million
Kenya Power’s customer base has grown over the past three decades, increasing from about 370,000 customers in 1996 to 10.4 million currently.
The company said the expansion has brought higher expectations for service delivery and customer satisfaction.
Through the new performance management framework, Kenya Power will monitor the productivity of all its employees under one system.
Ruth Muiruri, a Kenya Power director who spoke on behalf of the Board Chairman, said the framework was strategically important beyond compliance.
“The performance management framework we have launched today holds strategic significance beyond compliance. It will enable attainment of corporate goals through measurable gains in service delivery,” Muiruri said.
She added that the Board of Directors would continue providing guidance to management and KETAWU leadership to ensure the smooth implementation of the productivity management framework.
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