Kenya Power has announced its plans to restructure its shareholding arrangement to protect the interests of minority shareholders and promote sound corporate governance while working towards long-term goals. This adjustment is set to be discussed and ratified during a shareholders’ meeting scheduled for November 10, 2023.
The proposed modifications will see the government appoint five directors, while the other shareholders will elect four. These changes are expected to have significant implications and will require shareholder approval for adjustments to the Memorandum and Articles of Association, specifically relating to the restructuring of the Board of Directors.
Currently, the government is the majority shareholder in Kenya Power with a 50.09% stake, and these changes will further solidify its influence over the company’s operations. The restructuring is designed to align with the government’s commitment to transforming Kenya Power into a commercially viable entity, separating development initiatives to allow the company to operate on commercial principles.
The company’s directors, including individuals like Joy Masinde, Eng. Joseph Siror, Prof. Njuguna Ndung’u, Alex Wachira, Dr. Duncan Ojwang, and Kairo Thuo, will be impacted by these changes. The move is aimed at enhancing corporate governance and better reflecting the company’s shareholding structure.
