Kenya Power announces changes in shareholding structure in a move to safeguard the interests of its minority shareholders.
According to the corporation, the change will also improve excellent corporate governance procedures and aid the organization in achieving its long-term goals.
The adjustments are expected to be approved at a shareholders meeting scheduled for November 10th, according to a statement released by the firm on Tuesday.
In accordance with the modifications, the government will elect five directors while the other shareholders will elect four.
During the meeting, the company’s management will seek approval from shareholders to make the changes that are expected to have wide-ranging implications.
”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.
Kenya Power stated that the amendments provide a mechanism for appointing directors in line with its shareholding structure.
The Government holds a 50.09 stake and is the majority shareholder in the company. The latest changes will see the government further increase its grip on the company’s operations.
”The amendments provide a mechanism for appointing Directors in a manner that proportionately reflects the Company’s shareholding structure. Currently, the Government holds 50.09% of the Company’s shares,” the company’s statement read.
”The proposed changes are aligned to the Government’s commitment to transform Kenya Power into a commercially viable entity, by delinking development initiatives, in order to allow the Company to operate on commercial principles,” the company statement further read.
Some of the directors include Joy Masinde, Eng. Joseph Siror, Prof. Njuguna Ndung’u, Alex Wachira, Dr. Duncan Ojwang, and Kairo Thuo, among others.