The Kenya Power and Lighting Company (KPLC) plays a vital role in Kenya’s economy as the sole electricity distributor across the country. It powers homes, industries, and businesses, making it a cornerstone of Kenya’s industrialization journey. As a state corporation, KPLC has seen its fair share of highs and lows, both in financial performance and operational matters.
KPLC’s Recent Financial Performance
KPLC’s financial trajectory has been a focal point in recent years. For the financial year ending June 2021, the company posted a pretax profit of Ksh 8.198 billion, a significant recovery from the Ksh 7 billion pretax loss reported the previous year. This turnaround was largely attributed to cost-cutting measures, including a reduction of operating expenses from Ksh 47.8 billion to Ksh 39.86 billion. These figures demonstrate a significant improvement in the company’s fiscal discipline.
Moving into 2022, KPLC also implemented a presidential directive to cut power costs by 30%. By January 2022, the first phase of the reduction (15%) had been achieved, with the second phase expected later in the year. This price reduction was aimed at alleviating the high cost of living and boosting productivity for businesses reliant on electricity.
However, not all headlines surrounding KPLC have been positive. The company was criticized for a nationwide blackout on January 11, 2022, caused by the collapse of four high-voltage pylons in Embakasi, Nairobi. The issue raised concerns about the company’s infrastructure management and led to suspicions of sabotage. In August 2023, another massive power outage further highlighted operational challenges, with KPLC issuing a statement attributing the blackout to a system disturbance.
Leadership Changes at Kenya Power
Since President William Ruto took office, there have been notable changes in KPLC’s leadership. Joy Brenda Masinde, a seasoned lawyer, now chairs the board of directors. The board consists of various experienced professionals, including the Cabinet Secretary for National Treasury & Economic Planning, and Dr. Eng. Joseph Siror, the Managing Director and CEO. Other board members include representatives from the Ministry of Energy, such as Principal Secretary Alex Wachira, and non-executive directors like Humphrey Muhu and Veska Kangogo.
Major Shareholders of Kenya Power
KPLC’s shareholder structure is diverse, with the Kenyan government holding the largest stake. The National Treasury owns 50.1% of the company, making it the controlling shareholder. Other significant institutional shareholders include major banks such as Standard Chartered and Kenya Commercial Bank (KCB).
One of the most interesting developments in recent years is the rise of Ndindi Nyoro, the influential Kiharu MP, as the largest individual shareholder. By the end of June 2023, Nyoro had amassed 32.5 million shares, representing a 1.67% stake in KPLC, up from 27.29 million shares the previous year.
Below is the list of the top 20 shareholders of Kenya Power, according to the company’s official reports for the financial year ending June 2021, updated to reflect changes in 2023:
- The National Treasury – 978,492,034 shares
- Standard Chartered Nominees (Resident A/C KE 11450) – 32,518,589 shares
- Standard Chartered Nominees (Non-Resident A/C KE 11749) – 24,076,800 shares
- Hirani, Naran Khimji & Hirani Virji Khimji – 23,845,264 shares
- Kenya Commercial Bank (KCB) – 22,887,288 shares
- NIC Custodial Services – 21,790,300 shares
- Varsani Suresh Naran Ratna – 17,221,225 shares
- Shah Mahendra Kumar Khetshi – 13,958,000 shares
- Standard Chartered Nominees – 12,513,581 shares
- Stanbic Nominees – 12,400,226 shares
- Ndindi Nyoro – 32.5 million shares
- Patel Sumantrai & Patel Ramaben – 10,397,300 shares
- Standard Chartered Kenya Nominees Ltd – 8,920,415 shares
- Stanbic Nominees Limited – 8,551,279 shares
- Ruhari, Nehemia Ikuah – 8,000,055 shares
- Kaleb Investments Limited – 7,986,700 shares
- NIC Custodial Services A/C 077 – 7,196,799 shares
- Pama, Atul – 7,180,100 shares
- Tapioca Limited – 7,112,500 shares
- Co-op Custody Services Account – 7,052,500 shares
Kenya Power continues to be an essential player in Kenya’s economic development, despite facing challenges such as power outages and infrastructure concerns. The company’s leadership, shareholder composition, and strategic adjustments position it as a key contributor to Kenya’s industrial future. With the majority stake held by the government and significant shares owned by prominent individuals and institutions, KPLC remains a closely watched corporation in Kenya’s financial and energy sectors.
