This archive report was first published on 15 July 2020.
On July 13, 2020, five non-executive directors of Kenya Power, representing half of the board, resigned without the electricity distributor announcing their replacement.
The Nairobi Securities Exchange-listed firm, Kenya Power, confirmed the resignation of Adil Khawaja, Kairo Thuo, Wilson Kimutai Mugung'ei, Brenda Kokoi, and Zipporah Kering as independent directors.
The company did not provide reasons for their departures, leaving the board consisting of the CEO Bernard Ngugi and civil servants, including National Treasury Cabinet Secretary Ukur Yatani.
Energy Cabinet Secretary Charles Keter described the changes as normal, stating that it was a continuation of the reorganisation that started in the management ranks.
“It is just a change in the board. As you may have noticed, there has been reorganisation which has been happening at Kenya power and we had a new team at the management. It is just part of that reorganisation and nothing more than that,” he said.
Kenya Power, a monopoly, continues to post weaker earnings, issuing its third profit warning in a row. The alert means its net earnings for the year ended June 2020 will decline by at least 25 percent compared to the previous year’s profit of Sh262 million.
“The Covid-19 pandemic has adversely affected our business operation leading to a slow growth in electricity sales and an increase in financing costs resulting in reduced earnings,” Kenya Power said in the profit warning notice.
