Kenya Power has proposed changes to its board of directors that will see the government cede some of its seats to minority shareholders.

The state-owned electricity distributor has issued a notice convening an Extraordinary General Meeting (EGM) on 10^th November 2023. During this meeting, Kenya Power will be seeking shareholders’ approval to restructure its Board of Directors.

In the proposal, the government which is the majority shareholder at 50.09%-will appoint 5 directors while the remaining shareholders will pick 4 directors. The idea is to transform the power utility company into a commercially viable entity by allowing it to operate on commercial principles.

Kenya Power Minority Shareholders

On the list of minority shareholders of Kenya Power include those held by unknown individuals and firms through nominee accounts held in several commercial banks, as well as numerous life funds owned by some local insurance companies.

Analysts are pointing to the timing of the board restructuring proposal, barely a week after President Dr William Ruto signed into law the new Privatization Act.

Kenya Power has been on the IMF and World Bank radar for its under-performance and a drain on the exchequer, despite its monopoly status.

The state utility firm closed its last trading day (Tuesday, October 17, 2023) at KSh 1.42 on the Nairobi Securities Exchange (NSE), recording a 0.7% drop from its previous closing price of KSh 1.43.

It began the year with a share price of KSh 1.56 but has since lost 8.97% off that price valuation, ranking it 40th on the NSE in terms of year-to-date performance.

At present, the Kenya Power Board is made up of state bureaucrats led by Dr. Eng. Joseph Siror Managing Director & Chief Executive Officer of Kenya Power; Prof. Njuguna Ndung’u, Cabinet Secretary, National Treasury & Economic Planning; Alex Wachira, Principal Secretary, Ministry of Energy; Dr. Duncan Ojwang, Kairo Thuo;  Humphrey Muhu- Non-Executive Director and Alternate Director to the Cabinet Secretary, the National Treasury; Eng. Benson Mwakina, Alternate Director to the Principal Secretary, Ministry of Energy; Eng. Albert Mugo, Logan Christi Hambrick, Veska Kangogo; and Imelda Bore- General Manager, Corporate Affairs & Company Secretary, Kenya Power.

The board of directors is led by Joy Brenda Masinde, who is viewed as a close ally of State House.