Companies

State influence on board of Centum drops under new governance rules

ps

Dr Chris Kiptoo, the Trade PS, will not seek re-election to the board. PHOTO | FILE

The government’s board membership at Centum is set to be cut by half in a shake-up that will reduce its influence in the investment company.

The government, which controls 22.97 per cent of Centum through Industrial & Commercial Development Corporation (ICDC), will now have only one seat at the company’s board in line with its dwindling shareholding and new corporate governance rules.

Trade principal secretary Chris Kiptoo will not be pursuing re-election at the upcoming shareholders’ meeting, the company said.

Instead, taxpayers’ interests at Centum will only be represented through a director nominated by State-owned financier ICDC — a position currently vacant following the exit of Peter Kimurwa in July 2015.

“The Government will continue to have one seat on the board of Centum, currently occupied by ICDC,” the firm said in a statement to Business Daily.

Centum said this decision is in line with a new governance code which requires board composition of listed firms to comprise majority of independent directors and shall not be biased towards a substantial shareholder.

“The Government has by legacy held two seats on the board of Centum since its days as a majority shareholder of Centum even though in time its shareholding through ICDC has been reduced to 23 per cent.”

The changes at Centum will also see the exit of James Muguiyi who currently serves as chairman and has been on the board since December, 2003.

“The company shall be filling the position of chairman of the board with a person that meets the new requirements so as to continue to be in compliance with the corporate governance regulations,” Centum said.

Laila Macharia, 45, will be seeking re-election to the board. She first joined Centum as a director in October 2013.

Centum’s other board members are businessman Chris Kirubi (the largest single shareholder), chief executive James Mworia, Strathmore University don James McFie, Imtiaz Khan and Henry Njoroge.