Lion’s share for gov’t as Kenya Power changes board composition
Kenya Power has announced plans to restructure its board in a move that will see the government get majority slots in the board (five) while other shareholders get the minority (four).
In a statement on Tuesday, October 17, 2023, Kenya Power stated that the changes were aimed at safeguarding the interests of the minority shareholders.
"Kenya Power is in the process of amending its Memorandum and Articles of Association to safeguard the interests of minority shareholders, in line with good corporate governance practices and the Government's transformative growth agenda," the statement read in part.
"In this regard, the Company has issued a notice convening an Extraordinary General Meeting (EGM) that is scheduled to take place on 10th November 2023. During the EGM, the Company will be seeking shareholders' approval to amend its Memorandum and Articles of Association, specifically on restructuring of the Board of Directors."
New Kenya Power board structure
The amendments, according to the utility firm, will provide a mechanism for appointing Directors in a manner that proportionately reflects the company's shareholding structure.
Currently, the government holds 50.09 per cent of the Kenya Power shares. In the proposed restructuring, the government, which is the majority shareholder, will appoint five directors while the remaining shareholders will elect four directors.
"The proposed changes are aligned to the government's commitment to transform Kenya Power into a commercially viable entity, by defining development initiatives, in order to allow the company to operate on commercial principles," the statement 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.