Merali now steps down as Sameer chairman

In the 25 years, Mr Merali—who has a 57.3 per cent stake in Sameer Africa—has had unfettered powers of decision making in the firm’s executive suite.

The statement added that the firm has tapped former permanent secretary Erastus Mwongera to the board and elected him chair of its board of directors.

“Hence after 25 years, and in line with emerging good corporate governance practices of separating ownership from management, he felt that it was time for him to stand down,” said the statement.

It was not clear from the statement whether Mr Merali was quitting the board or he will remain a director at the company. 

The move comes as the capital markets regulator has been putting pressure on listed companies to have investors with substantial stakes reduce their influence in running of the firms.

The Capital Markets Authority (CMA) has been advocating for increased presence of independent directors in the boardroom to ensure no individual dominates the decision making process.  

“There should be a clear separation of the role and responsibilities of the chairman and chief executive,” says CMA in its latest guide on corporate governance practices.

The exit of Merali from Sameer’s helm comes weeks after the Somen family reduced their board influence in AccessKenya—which had been a major source of friction within the internet firm’s boardroom.

This led to Mr Michael Somen stepping down as chairman recently amid claims that decision making at AccessKenya remained in the grip of the Somen family to the exclusion of independent directors despite the firm going public three years ago.

But in recent years Mr Merali has been slowly reducing his presence in corporate Kenya and divesting mainly from tech companies such as Zain, Swift Global and Kenya Data Networks, convincing many local entrepreneurs that it is time to harvest what they planted in the late 1990s.

The divestiture earned him billions of shillings in capital returns.

For example, the sale of a 15 per cent stake in Zain Kenya last year earned him Sh4 billion.

In 2008, he stepped down as chairman and board member of battery manufacturers Eveready East Africa—leaving the seat to former Vice President Moody Awori.