By Benadeta Mwaura - Reporter
Kenya, May 11, 2026 - A fresh corporate battle is unfolding at WPP Scangroup after former chief executive Bharat Thakrar teamed up with minority shareholders to demand the removal of the company’s entire board, citing years of financial decline and strategic missteps.
According to reports, the group of investors, holding a combined 13.59 percent stake, has formally written to the board requesting a special general meeting within 28 days to vote out the current leadership, including the chairman and CEO.
At the heart of the dispute is what shareholders describe as a “continued deterioration” in the company’s financial, commercial and strategic position since Thakrar’s exit in February 2021.
The push for a board overhaul is backed by a string of troubling financial indicators. Over the past five years, the company has recorded aggregate trading losses of about Sh3.3 billion, with its net loss widening to Sh713.7 million in 2025, up from Sh506.7 million the previous year.
Revenues have also taken a significant hit, falling from about Sh7 billion in 2021 to roughly Sh2 billion, highlighting the scale of the company’s contraction.
Shareholders say the firm has issued four consecutive profit warnings, suspended dividend payments, and seen its cash reserves decline sharply, further eroding investor confidence.
The company’s struggles have been mirrored on the Nairobi Securities Exchange, where its share price has dropped by more than 60 percent since 2021.
At the time of Thakrar’s removal, the stock traded at around Sh5.60–Sh5.94, but has since fallen to nearly Sh2.10–Sh2.24, wiping out significant shareholder value.
Investors argue this decline reflects deeper governance and strategic issues within the company, rather than just market conditions.
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Beyond financial losses, the shareholders point to a weakening business model, including the exit of major clients such as KCB, Equity Bank, NCBA, and Airtel Africa, with Airtel alone previously contributing about 24 percent of revenues.
The firm has also scaled back its regional presence, exiting or shutting down operations in markets like Nigeria and Tanzania, and divesting from parts of its South African business.
These moves, investors say, have undermined the company’s once-strong pan-African positioning.
In their letter, the shareholders raised concerns about broader governance issues, including a Sh1.2 billion loan extended to the parent company, WPP, which they argue raises questions about financial prudence and strategic alignment.
They are now proposing a new board that would include Thakrar himself alongside other industry figures such as Andrew White, in a bid to restore effective oversight, rebuild the business and protect shareholder value.
Under Kenya’s Companies Act, the board is required to convene the requested meeting within the stipulated timeline. If it fails to do so, the shareholders have indicated they will move ahead and call the meeting themselves at the company’s expense.
The outcome of this standoff could mark a turning point for WPP Scangroup, which has long been a dominant player in East Africa’s advertising and communications industry but is now grappling with shrinking revenues, client losses and investor pressure.
At its core, the battle reflects a broader question facing many legacy firms in the region: how to adapt, restructure and remain competitive in a rapidly evolving digital and marketing landscape.