Kenya Power’s Electrifying Shift in Shareholding Structure
Kenya Power has announced its intention to alter its shareholding structure to protect the interests of minority shareholders.
According to the company, the move will also improve corporate governance practices and assist the utility company in achieving its long-term goals.
In a statement released on Tuesday, the corporation announced that the changes will be approved at a shareholders’ meeting scheduled 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 shareholder approval to implement changes that are anticipated to have far-reaching effects.
”The Company will be seeking shareholders’ approval to amend its Memorandum and Articles of Association, specifically on restructuring of the Board of Directors,” the statement partly read.
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According to the energy provider, the amendments provide a mechanism for appointing directors by the company’s shareholding structure.
The government is the majority shareholder of the corporation, holding a 50.09 percent stake.
The government will tighten its grip on the company’s operations as a result of the newest adjustments.
”The amendments provide a mechanism for appointing directors proportionally to the shareholding structure of the company. The government currently controls 50.09 percent of the Company’s shares, according to the company’s statement.
”The proposed 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 company statement further read.
Joy Masinde, Eng. Joseph Siror, Prof. Njuguna Ndung’u, Alex Wachira, Dr. Duncan Ojwang, and Kairo Thuo are among the directors.
Kenya Power’s Electrifying Shift in Shareholding Structure
