Friday, December 2, 2016

Kenya: Stake of Minority Shareholders in Kengen has Been Substantially Diluted

State ups its stake in KenGen to 74pc (The Standard)

The Kenyan Government has increased its shareholding in the Kenya Electricity Generating Company (KenGen), firming its majority owner's grip on the power generator. The State's shareholding increased to 73.92 per cent as of June 2016 from 70 per cent in June 2015, after a rights issue in June this year.

The National Treasury, which holds the Government ownership in KenGen, converted a Sh20.2 billion debt into equity, which had the effect of pushing up its shareholding. Treasury now owns 4.62 billion shares out of the total 6.24 billion shares.

At the same time, the stake of minority shareholders in the company has been substantially diluted, after the rights issue. KenGen, in its annual report for the year to June 2016, said the over 192,000 shareholders held a 14 per cent stake by close of the financial year, compared to 26.78 per cent that was in their hands as of June 2015.

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