The government parastatal responsible for distributing electricity in the country has announced the official change of its name.
In a newspaper advert carried by the Daily Nation, the company informed stakeholders that it was changing from a limited company to a public limited firm.
"Notice is hereby given that The Kenya Power and Lighting Company Limited has changed its name to The Kenya Power and Lighting Company Plc, following the due approval by shareholders and on receipt of the certificate of change of name issued by the Registrar of Companies," read the statement from the firm.
The move was in accordance the Companies Act which was enacted late in 2015 dictating that a company that is both a limited company and a public company may only be registered with a name that ends with the words “public limited company” or the abbreviation “Plc”.
On the other hand, a company that is both a limited company and private company may be registered only with a name that ends with the word "limited" or the abbreviation "Ltd."
Safaricom also complied with the regulation in 2018.
Difference between a Plc and Ltd.
Plc refers to a company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated and are required by law to publish their complete and true financial position so that investors can determine the true worth of it's stock (shares).
The shares can be brought and sold through the stock exchange in a Public Limited Company. There is no need to consult the owners for selling and buying shares.
For a limited company (Ltd), however, shares are usually sold to close friends and affiliates and can only be sold if all the shareholders agree.
