KE Holdings calls out K-Electric management crisis

November 24, 2025 (MLN): KE Holdings Limited (KEH), the largest indirect shareholder of K-Electric Limited with a 35.7% stake, has formally raised serious concerns about the power utility's senior management conduct and called for immediate board reconstitution.

In a letter addressed to K-Electric CEO Moonis Alvi and the Board of Directors, KEH outlined what it described as a "breakdown in trust" between KE's management and key stakeholders including, the Government of Pakistan and National Electric Power Regulatory Authority (NEPRA).

KEH holds a 53.8% stake in KES Power Limited (KESP), which owns 66.4% of K-Electric, making KEH the single largest indirect shareholder in Pakistan's only vertically integrated power utility serving Karachi.

The shareholder letter, signed by Casey McDonald, Sole Director of KE Holdings Limited, levels serious accusations against KE's senior management team.

KEH alleges that management has been leaking sensitive company information to media outlets and misreporting information surrounding recent board meetings and shareholder motivations, undermining corporate confidentiality and trust.

The letter states that KE's senior management has lost the confidence and trust of key stakeholders including the Government of Pakistan and NEPRA.

KEH attributes this breakdown to a lack of strategic vision for the company, coupled with poor financial and operational results that have left the utility struggling despite decades of private operation.

Furthermore, KEH criticizes what it describes as communication failures, overly aggressive and unnecessary lobbying and public relations campaigns, and imprudent legal strategies.

The shareholder argues that management's failure to maintain constructive dialogue with regulators and utilize existing tariff appellate forums is actively destroying shareholder value and exemplifies the recent breakdown in trust with key stakeholders.

According to the letter, K-Electric has operated with an incomplete board since October 2022, when minority shareholders Al Jomaih Power Limited (18% indirect ownership) and Denham Investment Ltd (12% indirect ownership) obtained an ex parte injunctive relief from the Sindh High Court blocking board appointments.

KEH claims this injunction was "improperly obtained" and has been found by the Cayman Court of Appeal to breach the shareholders agreement.

The current board's term expired on July 29, 2025, leaving the company in a governance vacuum.

KEH is demanding that K-Electric appeal to the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Courts to allow fresh board elections.

The shareholder accuses current management of "willfully" not pursuing board instructions to enable this process.

"KE is too important to be held ransom by a minority shareholder group and rogue management acting mainly out of self-preservation," the letter states.

The letter highlights K-Electric's continued reliance on "significant amounts of tariff subsidies" nearly 20 years after privatization, suggesting fundamental operational issues continue to deteriorate.

KEH criticized KE's strategy of pursuing litigation and stay orders rather than engaging constructively with regulators on tariff matters.

The letter has been copied to the Chairman of the Securities and Exchange Commission of Pakistan and the CEO of Pakistan Stock Exchange, indicating KEH's intent to escalate the matter through regulatory channels.

K-Electric serves as Karachi's sole power provider, making the corporate governance dispute particularly significant for Pakistan's economic hub.

The utility supplies electricity to millions of consumers and industrial customers in the city.

KEH has positioned itself as a "solution-oriented commercial shareholder" focused on improving operational and financial performance.

The company is calling for new leadership to work with stakeholders to ensure sustainable tariffs and improved service delivery.

The shareholder dispute represents a critical juncture for K-Electric as it navigates regulatory challenges, financial pressures, and now, a public governance crisis that could impact service delivery to one of Pakistan's most populous cities.

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