Shareholders of listed utility company Kenya Power & Lighting Company Plc (KPLC) have approved the government’s proposal to appoint five directors to its board.
The proposal, which was voted on during the company’s Extraordinary General Meeting (EGM) allows the minority shareholders to elect four more directors to the Board.
“Currently, the Government holds 50.09% of the Company’s shares. The approved amendments give the Government, as the Majority Shareholder, the right to appoint five directors while the remaining shareholders will elect four directors,” the power company said in a statement.
The proposed changes are aimed at enhancing good governance practices, in the process of transforming the company into a commercially viable entity operating on commercial principles.
– Ms. Joy Brenda Masinde, Chairman of the Board of Directors.#KenyaPowerEGM pic.twitter.com/9w3nby7PUh
— The Kenya Power & Lighting Company Plc. (@KenyaPower) November 10, 2023
The utility company further added that the changes are part of the government’s plan to improve the company’s commercial performance.
“The changes are in line with the government’s commitment to transform Kenya Power into a commercially viable entity by separating development initiatives from the company’s operations to enable it to run on commercial principles,” Kenya Power said.
The main reason for the loss was the high finance costs, which rose by 89% due to the depreciation of the Kenyan shilling against major international currencies. The shilling lost 19% of its value against the US dollar in the period.
To improve its financial performance, Kenya Power plans to restructure its loan book to reduce its foreign exchange exposure.
It also intends to explore new business growth areas to stimulate electricity demand and ensure sustainable growth.
