Business

Kenya Power shareholders nod to board restructuring

Friday, November 10th, 2023 16:55 | By
Forex, fuel power purchase costs chew KPLC earnings
Kenya Power technicians at work. PHOTO/KenyaPowerLtd/Facebook

Kenya Power shareholders have agreed to amendments to the company's Memorandum and Articles of Association which will see the board restructured.

In an Extraordinary General Meeting (EGM) held on Friday, November 10, 2023, the shareholders voted to have the changes which will see the government, which is the shareholder, get five slots in the board.

"Kenya Power shareholders have approved amendments to the Company's Memorandum and Articles of Association during an Extraordinary General Meeting (EGM) held today. The amendments, key among them the restructuring of the Board of Directors, were proposed to safeguard the interests of minority shareholders, in line with good corporate governance practices and the government's transformative growth agenda," the firm stated.

Kenya Power technicians loading electric poles on a lorry.
Kenya Power technicians loading electric poles on a lorry. PHOTO/Facebook/Kenya Power Ltd

Government shareholding in Kenya Power

Currently, the Government holds 50.09 per cent of the company's shares.

As a result, the government will appoint five directors while the remaining shareholders will elect four directors.

"The changes are aligned to the Government's commitment to transform Kenya Power into a commercially viable entity, by delinking development initiatives, to allow the Company to operate on commercial principles," the utility firm added.

Under the current structure, the board is designed to have a minimum of seven and a maximum of 10 directors, with an appropriate mix of skills, experience, age, gender, geographic spread and team roles.

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