- WPP Scangroup share price climbed 4.76% in three days as investors reacted to major board changes ahead of the June 8 AGM.
- WPP appointed senior regional and global finance executives to the board amid a shareholder revolt led by founder Bharat Thakrar.
- The advertising group remains under pressure after posting a KES 713.7 million net loss for FY2025 and underperforming the broader NSE in 2026.
Shares of WPP Scangroup Plc edged higher this week after the company unveiled sweeping board changes ahead of a high-stakes shareholder showdown scheduled for next month.
The WPP Scangroup share price climbed 4.76% over the last three trading sessions to KES 2.20 from KES 2.10, as investors reacted to the appointment of three new non-executive directors linked closely to parent company WPP Plc.
The Nairobi Securities Exchange-listed advertising and communications group announced the appointments effective May 13, replacing three outgoing directors at a time when minority shareholders are pushing to remove the entire board over the company’s deteriorating financial performance.
WPP Scangroup Share Price Rises Ahead of June AGM
The newly appointed directors include Kagiso Musi, CEO of WPP Media Sub-Saharan Africa, Nick Douglas, WPP Group Finance Director, and Manuel Segimon, CFO for WPP Creative EMEA and VML EMEA.
The appointments deepen WPP Plc’s operational and financial influence over its Kenyan subsidiary just weeks before the company’s annual general meeting on June 8.
Outgoing directors include Jon Eggar, Patou Nuytemans, and Shahid Sadiq.
The board reshuffle comes after a shareholder group controlling about 13.59% of WPP Scangroup formally requisitioned resolutions seeking the removal of all current directors, including chairman Richard Omwela.
The campaign has been led by founder and former chief executive Bharat Thakrar and allied shareholders, who argue the company has suffered years of strategic decline since his departure in 2021.
Despite the mounting pressure, WPP Plc’s controlling stake of roughly 50.1% means the proposed board overhaul is unlikely to succeed unless major institutional investors break ranks.
Investor attention has now shifted toward whether the June 8 AGM could trigger further volatility in the WPP Scangroup share price as governance tensions escalate.
Why WPP Scangroup Share Price Is Still Under Pressure
Despite the recent rebound, the WPP Scangroup share price remains near multi-year lows and continues to underperform the broader Nairobi Securities Exchange.
Technical analysis of the daily chart shows the stock is still trading within a broader bearish structure, with lower highs forming consistently since late 2025.
The recent move from KES 2.10 to KES 2.20 suggests buyers are attempting to defend support levels around KES 2.00 after heavy selling pressure earlier this month.
During Friday’s session, the stock briefly touched KES 2.30 before pulling back to close at KES 2.20.
Trading volumes also increased sharply during the recent decline and rebound phase, reflecting heightened market interest ahead of the June AGM.
Momentum indicators remain relatively weak. The Relative Strength Index, or RSI, stood near 43 on the daily timeframe, suggesting bearish pressure has eased slightly but has not fully reversed.
The WPP Scangroup share price has lagged behind the broader market in 2026. While the NSE 20 Share Index and NASI have gained roughly 11% year-to-date, SCAN shares remain down an estimated 13% to 15% over the same period.
That divergence highlights investor concerns around profitability, governance stability, and the company’s long-term growth outlook.
WPP Scangroup Financial Losses Deepen Despite Board Changes
The governance dispute intensified after WPP Scangroup released weak audited full-year 2025 results in April.
Revenue declined 16.3% to KES 2.04 billion from KES 2.44 billion in 2024, while net loss widened 41% to KES 713.7 million from KES 506.7 million a year earlier.
Loss before tax reached KES 639.3 million, while gross profit dropped nearly 28% to around KES 1.47 billion.
The company’s liquidity position also weakened significantly. Cash and cash equivalents fell to KES 864 million from KES 2.14 billion in the previous year.
Management attributed the weak performance to lower advertising spending, pricing pressure, major client losses, restructuring costs, and broader industry challenges affecting the global advertising sector.
No dividend was proposed for the year.
Chief executive Akua Brayie Owusu-Nartey recently outlined a turnaround strategy centered on “Relentless Growth, Remarkable Solutions, Return to Ruthless Basics” as the company seeks to stabilize operations and restore profitability.
Governance Fight Could Shape Near-Term Outlook
The upcoming AGM is now shaping into one of the most closely watched corporate governance battles on the Nairobi Securities Exchange in recent years.
Minority shareholders have accused the board of overseeing cumulative losses estimated at roughly KES 3.1 billion between 2021 and 2025, alongside declining market share and regional contraction.
Some investors have also raised concerns over a KES 1.2 billion related-party loan extended to parent company WPP at a 5% interest rate.
For WPP Plc, the latest board appointments appear aimed at reinforcing oversight and maintaining strategic control of its East African subsidiary during a period of operational strain.
With the June 8 AGM approaching, investors are likely to watch closely for any signs that the boardroom conflict could materially affect the company’s turnaround plans or future direction
