A Kenyan court has dismissed a $35M compensation claim by former WPP Scangroup CEO Bharat Thakrar over alleged wrongful termination and reputational harm.
Nairobi, Kenya — June 2025 — The High Court of Kenya has dismissed a Sh4.5 billion lawsuit filed by Bharat Thakrar, the founding CEO of WPP Scangroup, marking a critical ruling in Kenya’s corporate governance history.
Thakrar, who led Scangroup from 1999 until his abrupt resignation in 2021, accused the board of wrongful dismissal, contract breaches, reputational damage, and loss of stock options. His departure came amid a broader leadership shake-up at the Nairobi-based advertising firm.
High Court Finds No Breach of Contract
The court concluded that WPP Scangroup acted within its legal authority and did not breach Thakrar’s employment contract. His claims, which included projected earnings and unvested stock options, were ruled “unsubstantiated and excessive.”
This outcome reinforces the legal precedent that executive compensation claims must be clearly supported by contract terms—not future expectations or entitlements.
Governance Challenges at WPP Scangroup
Thakrar’s exit was part of a deeper corporate governance crisis at Scangroup, which saw:
- Multiple executive departures
- Shareholder unrest
- Falling revenues in East and Central Africa
Following Thakrar’s resignation, the board appointed Monique Tistounet as CEO to restore stability. However, Scangroup’s financial results show persistent losses since 2022, raising fresh concerns about the company’s turnaround plan.
Explore more on the Scangroup executive exits and shareholder unease.
A Landmark in CEO Litigation
The case—one of the largest CEO compensation lawsuits in Kenya—has revived national debate on executive accountability, especially within publicly listed firms controlled by foreign shareholders like WPP Plc.
“This judgment underscores the need for enforceable executive contracts and clear boardroom oversight,” said a senior analyst at the Nairobi Securities Exchange (NSE).
Legal experts say the ruling sets a precedent for boardroom discipline, and could deter speculative lawsuits by top executives seeking golden parachutes after strategic disagreements.
What’s Next for WPP Scangroup and Investors
While the court ruling closes Bharat Thakrar’s legal chapter, WPP Scangroup still faces reputational challenges, financial pressure, and talent retention hurdles.
Investors and clients are closely watching to see whether the firm can:
- Rebuild trust in the brand
- Return to profitability
- Compete effectively in Kenya’s evolving ad market
The verdict, however, gives the board breathing space to refocus on strategic restructuring and long-term sustainability.
Also read: Monique Tistounet’s mandate to revive WPP Scangroup