NAIROBI, Kenya, May 11 – Former Bharat Thakrar is spearheading a shareholder push to remove the board of WPP Scangroup, escalating pressure on the struggling advertising firm after years of losses, client exits and shrinking regional operations.
A group of minority investors controlling 13.59 percent of the company’s issued share capital has requisitioned a general meeting to seek board changes, arguing that shareholder value has been severely eroded under the current leadership.
The move marks one of the most significant shareholder uprisings at the Nairobi Securities Exchange-listed company in recent years and comes amid mounting concerns over its weakening financial position and strategic direction.
“We wish to register, formally and on the record, our serious concern at the continued deterioration in the Company’s financial, commercial and strategic position since 18 February 2021, when the share price stood at KSh5.94,” the shareholders said in a May 8 requisition letter.
“As of 6 May 2026, the share price had fallen to KSh2.24, representing a decline of approximately 62 percent in market capitalization and a material erosion of shareholder value.”
The shareholder bloc, led by Bharat Thakrar and his wife Sadhana Thakrar, accused the board of overseeing a sustained decline in the company’s fortunes, citing cumulative trading losses of about Sh3.1 billion between 2021 and 2025 and a Sh1.9 billion drop in cash balances over the same period.
The investors also pointed to the loss of major accounts including KCB Group, Equity Bank, NCBA Group and Airtel Africa, warning that the Airtel exit could further weaken earnings after reportedly contributing nearly a quarter of group revenues.
The requisition further faults the company for retreating from key African markets following the disposal of its South African public relations business and the closure of operations in Nigeria and Tanzania.
The shareholder campaign comes after WPP Scangroup released its 2025 audited results, which showed revenue declined 16.3 percent to Sh2.04 billion from Sh2.44 billion a year earlier.
Gross profit fell 27 percent to Sh1.47 billion, while the group posted a net loss of Sh714 million compared to a Sh507 million loss in 2024.
Cash reserves also dropped sharply to Sh864 million from Sh2.14 billion previously, with the company failing to declare a dividend.
Shareholders further questioned related-party transactions involving a Sh1.2 billion loan extended to WPP Group Services, a subsidiary of WPP plc, arguing that the 5 percent interest rate appeared below prevailing market rates.
Additional concerns were raised over a Sh78 million receivable from Ogilvy South Africa, with investors demanding more disclosure on repayment arrangements, recoverability and treasury management practices.
The requisition was filed under Article 44.4 of the company’s Articles of Association, which allows shareholders controlling at least 10 percent of voting rights to compel the board to convene a general meeting.
