Kenya Power and Lighting Company (KPLC) has announced changes in the composition of the board of directors.
In a statement on Friday, November 10, KPLC said the new adjustments are in line with good corporate governance practices and the Government’s transformative growth agenda.
“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,” read the statement in parts.
Further, Kenya Power said the amendments will provide a mechanism for appointing Directors to fairly reflect the Company’s shareholding structure.
Also, KPLC explained that the Government holds 50.09% of the Company’s shares and will get the majority of the directors.
“In line with the approved amendments, the Government, who is the Majority Shareholder, will appoint five directors while the remaining shareholders will elect four directors,” explained KPLC.
According to the statement, the changes are aligned to the Government’s commitment to transform Kenya Power into a commercially viable entity.
This would be made possible by delinking development initiatives, to allow the Company to operate on commercial principles.
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Who are the shareholders?
Minority shareholders in Kenya Power are the shareholders who hold class A ordinary shares. Ordinary shares, according to KPLC, have a nominal value of Ksh.2.50.
Consequently, minority shareholders hold class A ordinary shares and are entitled to elect at least four directors to the lighting company’s board of directors.
Meanwhile, the majority shareholder, i.e., the government, will appoint five directors to ensure balance in the board.
According to a KPLC report in June 2022, 31,700 minority shareholders hold the rest of the shares other than those held by the government.
A third of the board of directors at Kenya Power is required to retire from office during every Annual General Meeting.
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Board of Directors
KPLC also specified on the eligibility for its board of directors.
In the public notice, KPLC stated that a director can be elected from the retiring board of directors who can offer themselves for re-election.
Additionally, the director can be elected if they have been recommended by the board for election at the AGM.
Currently, the KPLC board of directors includes Cabinet Secretary, National Treasury & Economic Planning Prof. Njuguna Ndung’u.
Others are Kenya Power’s Managing Director & Chief Executive Office Dr. Eng. Joseph Siror and Board chair, Joy Masinde.
