Kenya Power has brought more than 6,000 unionised workers into a new performance system that will tie their duties to clear targets, marking a major change in how the electricity distributor will assess staff output.
The company said the performance management contracts are aimed at improving accountability, raising efficiency and strengthening services to customers.
The move follows more than 20 years of talks between Kenya Power management and employees represented by the Kenya Electrical Traders and Allied Workers Union (KETAWU).
The arrangement makes Kenya Power one of the first government-owned enterprises to extend performance contracts to union employees. It is also in line with the Government-Owned Enterprises Act, 2025, which requires commercial state corporations to prepare annual business plans and use performance contracts based on measurable outcomes.
Instead of measuring employees mainly by the work they put in, the new system will focus on what they achieve. The agreements will set specific targets, timelines and expected quality standards against which performance can be assessed.
Kenya Power managing director and CEO Joseph Siror said employees must make better use of available resources as the company seeks to improve its results.
“Productivity is not simply about doing more. It is about delivering better results through effective use of our time, our skills, resources and our technology,” Siror said.
The Salaries and Remuneration Commission (SRC) provided guidance during the development of the framework.
SRC chairperson Sammy Chepkwony said extending performance management to union workers would help public institutions build a stronger focus on productivity and shared goals.
“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 encourage other public institutions to design performance management frameworks that promote productivity across all cadres of staff,” said Chepkwony.
The change comes as Kenya Power's customer numbers have expanded sharply over the years, increasing the pressure on the company to maintain good service.
The electricity distributor served about 370,000 customers in 1996, but the number has since risen to 10.4 million. The growth has also raised expectations for faster and better service as more households and businesses rely on the company.
Kenya Power said the new arrangement will allow it to assess the productivity of its entire workforce using a common performance framework.
The company expects the system to help translate its corporate plans into measurable results while giving management a clearer way of tracking progress among employees.
Kenya Power director Ruth Muiruri said the framework is not simply being introduced to meet a government requirement but is intended to support the company's long-term objectives.
“The performance management framework holds strategic significance beyond compliance. It will enable attainment of corporate goals through measurable gains in service delivery. The Board of Directors will continue to provide guidance to the management and the leadership KETAWU to ensure smooth implementation,” Kenya Power’s director Ruth Muiruri, said.
The implementation will involve continued cooperation between the board, management and KETAWU leadership as the company moves to have all employees assessed through the same system.
The launch closes a long period of negotiations over performance management for unionised staff and introduces a system where individual employee responsibilities are directly connected to Kenya Power's wider targets.