Kenya Power is moving to change its board composition to better reflect the company’s shareholding structure, according to a press release issued Tuesday.
The power company has called an extraordinary general meeting for November 10 to seek shareholder approval to amend its memorandum and articles of association. The amendments would create a mechanism to appoint directors proportionate to Kenya Power’s shareholding structure.
The Kenyan government currently holds a 50.09% stake in the company. Under the proposal, the government as majority shareholder would appoint five directors, while remaining shareholders would elect four board members.
“The proposed changes are aligned to the Government’s commitment to transform Kenya Power into a commercially viable entity,” the release stated, noting this would “delink development initiatives” and allow the company to operate on commercial principles.
Kenya Power said the move is aimed at safeguarding minority shareholder interests and follows “good corporate governance practices.” It also cited the government’s “transformative growth agenda.”
The potential board restructuring comes as the power company has faced financial struggles in recent years, prompting government bailouts.
