WPP Scangroup PLC is facing a high-stakes leadership crisis as minority shareholders, led by founder and former CEO Bharat Thakrar, have formally moved to oust the company’s current board of directors. The group, representing a combined 13.59% stake (58.7 million shares), has issued a requisition for a Special General Meeting (SGM) to be held by June 8, 2026
The case for WPP Scangroup Board removal
At the center of the argument for board renewal is the substantial destruction of shareholder value during the current directors’ tenure. Between February 2021 and May 2026, the company’s share price declined by approximately 62%, falling from KES 5.94 to KES 2.24. Such a prolonged decline cannot reasonably be dismissed as temporary market volatility.
Between 2021 and 2025, the group reportedly accumulated approximately KES 3.1 billion in trading losses, reflecting persistent difficulties in restoring profitability within its core business. The audited results for the year ended December 31, 2025, further underscored these challenges: revenue declined by 16.3% to KES 2.04 billion, gross profit fell by 27%, and the net loss widened to KES 714 million from KES 507 million the previous year. In a market where many firms have continued to pursue growth and operational resilience, such results inevitably raise questions regarding strategic execution and oversight.
Over the five-year period, cash reserves reportedly declined by KES 1.9 billion. Within the last financial year alone, cash and cash equivalents fell sharply from KES 2.14 billion to KES 864 million. For a service-oriented business operating in a competitive and rapidly evolving industry, a strong balance sheet is essential for investment, innovation, and resilience. A reduction of this magnitude significantly limits operational flexibility and increases pressure on future sustainability.
The board’s restructuring initiatives, including workforce rationalisation and market exits in Nigeria and Tanzania, were likely intended to stabilise operations and reduce costs. However, shareholders may reasonably question whether these measures addressed the underlying strategic issues or merely reduced the company’s scale while weakening its regional footprint. Although management has pursued a “right-sizing” strategy and adopted a partnership-focused approach in East Africa, these interventions have yet to produce a convincing turnaround.
Another major source of concern has been the loss of several high-profile clients, including KCB Group PLC, Equity Bank, NCBA Group, and Airtel Africa. The loss of Airtel Africa is particularly significant given its historical contribution to group revenues. In the marketing and communications industry, client retention is a direct reflection of competitiveness, strategic alignment, and service delivery. The departure of multiple flagship accounts over a relatively short period inevitably raises concerns about the company’s positioning and leadership effectiveness.
The absence of a dividend declaration for 2025 further reflects the company’s constrained financial position and reinforces shareholder frustration. Investors who once viewed the business as a leading regional communications powerhouse are now confronted with a significantly smaller, loss-making, and cash-constrained organization with limited visibility on a sustainable recovery strategy.
As the company’s founder and former chief executive, Thakrar remains closely associated with the vision and growth trajectory that once defined Scangroup’s success. His call for an SGM presents shareholders with a critical decision: whether to maintain the current leadership structure or pursue a new board capable of rebuilding strategic direction, strengthening client relationships, and restoring shareholder value.
