Telecommunications giant Safaricom PLC board on Friday, July 26, 2024, announced board changes following the exit of two board members.
Safaricom in a notice published on Friday announced the changes after the departure of Ory Okolloh and Francesco Bianco following a board meeting.
The Safaricom board on Wednesday, July 24, 2024, held its Annual General Meeting (AGM) for the year ended 31 March 2024 where it signaled replacement of members who had left.
“Safaricom in wishes to announce changes in the board with exit of Ory Okolloh and Francesco Bianco with effect from 24 July 2024 and 1 August 2024 respectively, following the full board meeting held on 24 July 2024. The Board will announce their replacement in due course,” the notice reads.
“The board takes this opportunity to thank Ms. Okolloh and Mr. Bianco for their invaluable and robust contributions in the committees and at board meetings during their tenure and wishes the two all the best in their future endeavors.”
The Safaricom board which is chaired by Ardil Arshed Khawaja is responsible for the overall conduct of the company’s business.
Safaricom Board Changes
Company Secretary Linda Mesa Wambani in the notice further highlighted that the announcement of the changes was issued with the approval of the Capital Markets Authority.
“This announcement has been issued with the approval of the Capital Markets Authority pursuant to the Capital Markets (Public Offers, Listing and Disclosures) Regulations, 2023. As a matter of policy, the Capital Markets Authority assumes no responsibility for the correctness of the statement appearing in this announcement,” the notice adds.
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During the AGM, the board announced that the street protests witnessed across several parts of the country in the past two months contributed to a 17 per cent drop in its share price.
This saw East Africa’s most profitable company lose more than Ksh118 billion in paper value over the past two months.
Safaricom management told shareholders that the street protests were partly to blame for the bearish run the firm’s counter has had at the Nairobi bourse.
“Safaricom share price declined due to foreign investor sell-off as interest rates rose in developed countries. Other factors contributing to the decline are the current protests in the country,” stated the management during the AGM.
The firm’s shareholders also approved a total dividend payout of Ksh1.2 per share for the year ended March 2024, representing a total dividend payout of Ksh48.08 billion.
Michael Joseph and John Ngumi exit
The Safaricom board changes notably came following the appointment of two new non-executive directors to sit on the Board, which took effect on 23 August 2023.
Further, the appointment of Dr (Eng.) John Kipngetich Mosonik and Ms. Murielle Lorilloux was to fill the void left by earlier board exits.
Their appointment came shortly after Michael Joseph left. Michael was for long the corporate face of the listed telco, having been Chief Executive Officer (CEO) and board Chairman in a period spanning over 23 years.
Michael Joseph resigned from his role as the director of the telecommunications company, with effect from 1 August 2023.
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In a communication, Safaricom said Joseph resigned to concentrate on other roles including chairman of Kenya’s national airline (Kenya Airways), and director in various organizations.
The company further added that he would also continue to pursue his passion in matters conservation and community service.
Before Joseph’s exit, John Ngumi had resigned as Chairman of the Board of Directors at Safaricom, barely five months after being appointed to the position.
In the board, the chairman Khawaja is responsible for the operation, leadership and governance of the board, ensuring its effectiveness and setting its agenda.
The CEO on the other hand is responsible for the management of the company’s business and the implementation of board strategy and policy. Peter Ndegwa is currently serving as the company’s CEO.
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