Kenya Power shares rise on board shakeup
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| Sachen Gudka, he joins Kenya Power board alongside four others. |
Kenya Power and Lighting Ltd (KPLC) shares popped up 0.52% on Tuesday to close at Ksh1.92. The shares rose after the electricity distributor replacement the five board members ousted last week.
Joining the Kenya Power include Sachen Gudka, a former chair of the board of the Kenya Association of Manufacturers, and Abdulrazaq Ali. The others are Caroline Kittony Waiyaki, Elizabeth Rogo and Vivienne Yeda.
Last week, Kenya Power announced the resignation of Adhil Khawaja, Kairo Thuo, Wilson Kimutai Mungung’ei, Brenda Kokoi and Zipporah Kering from its board. Energy Secretary Charles Keter said the exit of the directors was part of an ongoing shakeup and reorganization at Kenya Power in a bid to turn around its fortunes.
Notably, Kenya Power counts on the board shakeup to improve investor confidence at a time when the company’s stock has plunged this year and profit expected to decline. At Ksh1.92 a share, Kenya Power stock is currently down more than 30% for the year.
The electricity distributor expects its profit for the financial year through June 2020 to drop at least 25%relative to the previous year. Kenya Power cited a drop in electricity demand and soaring costs due to the coronavirus as weighing on its financial results. Some businesses have closed or scaled back operations in the wake of Covid pandemic, resulting in weak electricity demand.