- The government will appoint five directors as part of the changes, while the other shareholders will elect four.
- Kenya Power’s management will seek approval from shareholders to make the changes expected to have wide-ranging implications.
Kenya Power has announced plans to change its shareholding structure as the company looks to safeguard the interests of its minority shareholders. According to the company, the move will enhance good corporate governance practices and help the utility firm achieve its long-term objectives. In a statement issued yesterday, the firm stated that the changes were set for ratification in a shareholders meeting slated for November 10. The government will appoint five directors as part of the changes, while the other shareholders will elect four.
During the meeting, the company’s management will seek approval from shareholders to make the changes expected to have wide-ranging implications. The statement partly read, “The Company will be seeking shareholders’ approval to amend its Memorandum and Articles of Association, specifically on restructuring of the Board of Directors.” The power supply company stated that the amendments provide a mechanism for appointing directors in line with its shareholding structure. The government holds a 50.09 stake and is the majority shareholder in the company. The latest changes will further strengthen the government’s grip on the company’s operations.
The statement read in part, “The amendments provide a mechanism for appointing Directors in a manner that proportionately reflects the company’s shareholding structure. Currently, the government holds 50.09% of the company’s shares. The proposed changes align with the government’s commitment to transforming Kenya Power into a commercially viable entity by delinking development initiatives to allow the company to operate on commercial principles.”