Kenya Power is seeking shareholder approval to limit the tenure of directors appointed by its principal shareholder, the government.
A special resolution for the upcoming Annual General Meeting (AGM) proposes a six-year term limit for these directors to promote boardroom accountability.
The proposed changes to the company’s Articles of Association outline a framework for government-appointed directors. The government, as the holder of Class B shares, will retain the right to appoint five directors: the Cabinet Secretary for the National Treasury, the Principal Secretary for Energy, and three additional directors.
The three appointed directors will serve an initial three-year term, with the option for reappointment for a final three-year term, capping their service at six years. Directors appointed by the National Treasury and Energy ministries will also be limited to six years.
At each AGM, one-third of these directors will retire, starting with those longest in service, ensuring a continuous infusion of new perspectives while maintaining institutional memory. The proposal also outlines that any mid-term changes, including removal or replacement of directors, can only be made by the Class B shareholder via written notice to the Company Secretary.
This move aims to address the issue of entrenched leadership in state-owned enterprises, which has hindered innovation and prevented younger, qualified professionals from contributing. If approved, the proposal could serve as a model for other government institutions to follow.
