SUMMARY
Parastatals continue to experience difficulties in trying to achieve employee engagement. Consequently, governments have transitioned to the transformational leadership style to effectively achieve employee engagement. Nevertheless, it is still ambiguous whether the institution of transformational leadership style dimensions has boosted employee engagement levels in parastatals in Kenya. The objective of the study was to investigate the influence of idealized influence on employee engagement in parastatals in the energy sector in Kenya. Also, the study sought to determine the moderating influence of employee motivation on the relationship between idealized influence and employee engagement. This study targeted the 10 parastatals within the energy sector in Kenya with a population of 315 middle-level managers. The study adopted a positivist research philosophy to examine how idealized influence influences employee engagement and data were collected using structured questionnaires. A correlational research design was conducted with the purpose of determining the strength of the relationship between parameters of idealized influence and employee engagement in parastatals in the energy sector in Kenya. The findings showed that employee engagement has a statistical significant relationship with charisma, r(166) = 0.590, p < 0.01; ethical leadership, r(165) = 0.553, p < 0.01; teamwork, r(166) = 0.531, p < 0.01. Multiple linear regression analysis revealed that employee motivation positively and significantly moderates the relationship between idealized influence and employee engagement, R2= 0.405, F(2, 159) = 54.100, p <0.05, ß = 0.225, p < 0.05. The study concluded that charisma, ethical leadership, teamwork, and employee motivation positively enhance employee engagement.