Kenya Power has announced that it is set to shake up its shareholding structure as the company looks to safeguard the interests of its minority shareholders.
The move according to the company will also enhance good corporate governance practices and help the utility firm achieve its long-term objectives.
In a statement issued on Tuesday, the company stated that the changes are set to be ratified in a shareholders meeting slated to be held on November 10.
As part of the changes, the government will appoint 5 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.
The power supply company 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 strengthen 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, Kairo Thuo, among others.
